In a recent column by Ivy Main in the Virginia Mercury, she discusses the economics of clean energy: “New renewable energy is cheaper than new fossil fuel generation. That’s why in 2024, 94% of all new power capacity in the U.S. came from solar, batteries and wind energy. Fossil gas made up just 4% of new generating capacity.”

But, as Main also points out, and as detailed in a comprehensive report from Knowable Magazine, republished by Yale Climate Connection, the ongoing transition to renewables faces a difficult challenge: the inherent variability of wind and solar power. The Germans have coined a term for periods when renewable energy production plummets—”Dunkelflauten,” or “dark doldrums.” These stretches of minimal solar and wind production can impact grid reliability.

This variability makes energy storage one of the most crucial challenges in the transition to renewable energy. Unlike traditional power plants that can be ramped up or down based on demand, solar panels and wind turbines generate electricity only when the sun shines or the wind blows. To maintain a reliable grid powered primarily by renewables, we need ways to capture and store excess energy during peak production times for use during these “dark doldrums.”

The current go-to solution, lithium-ion batteries, are effective at daily energy cycling but aren’t optimal for longer-duration storage. According to University of Chicago materials scientist Shirley Meng, quoted in the Knowable Magazine piece, these batteries cost over $100 per kilowatt-hour—making them prohibitively expensive for long-term storage.

Emerging Solutions

However, engineers and researchers are developing innovative alternatives. The Knowable Magazine report highlights several promising technologies:

• Sodium-ion batteries that replace expensive lithium with more abundant sodium
• “Iron-air” batteries developed by Form Energy, which use simple rust chemistry for energy storage
• Flywheel systems that store energy through mechanical rotation
• Compressed air storage systems, like those being developed by Hydrostor
• Hydrogen production and storage for managing longer Dunkelflauten periods

Virginia’s Dual Challenge

For Virginia, these storage questions intersect with two major trends we’ve been covering—and grappling with in our work for clients—a lot over the last few years: the Commonwealth’s renewable energy mandates and its expanding data center industry. The Virginia Clean Economy Act requires the state’s largest utilities to be 100% carbon-free by 2045, while data centers continue to demand more reliable, uninterrupted power.

Virginia counties are increasingly grappling with how to regulate energy storage through zoning ordinances. Surry County is currently considering amendments to allow battery storage systems by conditional use permit in agricultural-rural and industrial zones. Amherst County is working on similar regulations for potential battery storage at its Zane Snead Industrial Park. Other localities like Hanover County have already adopted comprehensive battery storage policies. This county-level activity reflects both the growing demand for storage capacity and the need for careful local oversight of these facilities.

The Cost Equation

While technological solutions are emerging, a critical question remains: who pays for all this storage capacity? According to energy expert Gabe Murtaugh, director of markets and technology at the Long Duration Energy Storage Council, the cost implications of decarbonization aren’t getting enough attention. Without careful planning and intervention, some regions could see dramatic increases in utility bills.

However, different markets are finding creative ways to make storage economically viable. In Texas, where electricity prices fluctuate based on market conditions, consumers are already benefiting from battery storage installations. The Knowable Magazine report notes that Texas electricity customers are saving hundreds of millions of dollars through a system where batteries store energy when it’s cheap and sell it when demand – and prices – are high.

Other regions are using policy tools to make storage more economically feasible. In Switzerland and other European countries, utilities face carbon taxes of up to $130 per metric ton of emissions, creating financial incentives for storage solutions. California has taken a different approach, requiring utility companies to ensure adequate energy coverage while helping to cover storage costs.

These various approaches offer important lessons for Virginia as it develops its own storage strategy. The key will be finding the right mix of market incentives, regulatory requirements, and possible public support to make storage both technically and economically viable.

The Path Forward

The transition to renewable energy will require a sophisticated mix of storage solutions and smart grid management. As Virginia’s energy landscape evolves, policymakers must consider not just renewable energy installation, but also the crucial infrastructure needed to store and manage that power effectively.

As Meng notes in the Knowable Magazine piece, the electrical grid is “probably the most complicated machine ever being built.” Virginia’s challenge will be ensuring this machine can reliably power its future while meeting its clean energy goals.