The report, released by research and consulting firm Frost & Sullivan, suggests that the limitations in the cost and efficiency of energy storage systems have restricted utilities' ability to adopt technologies like intermittent renewable energy and smart grids. However, this technology is also increasingly important to the more mundane aspects of electricity distribution.
"The most important drivers for developing electric energy storage systems are grid stability and reliability, mass integration of intermittent renewable energy generators, better use of energy resources, fossil fuels shortage, and limiting of greenhouse gases," Tomasz Kaminski, technical insights research analyst for Frost & Sullivan, said in a statement.
One of the key technologies in the development of effective energy storage is the lithium-ion battery, the power source for modern electrical vehicles. This new category of vehicle will similarly play an important role in creating a distributed energy network, though Bloomberg notes a recent report from the Union of Concerned Scientists points out electric vehicles have a varying environmental impact based on their location.