This report by Arthur D. Little explores the potential of battery storage to support the energy transition. The authors argue that while battery storage has gained strong interest as an option to respond to the challenges posed by decentralized and intermittent generation, it is still too early to say whether it will be a viable business for system operators. The report suggests that high synergies with other sectors, such as transportation and industry, will drive the deployment of Li-Ion batteries. Local regulation is also seen as a decisive factor in boosting battery deployment. The authors conclude that the move towards battery storage will be fast for some, but slower for others, and that the shape of the industry will depend on how well utilities and system operators adapt to these changes.
