On October 27, a high-stakes, high-reward energy race is unfolding globally as nations and companies strive to unlock the potential of long-duration energy storage (LDES) to capture the next trillion-dollar clean energy market. Venture capital is rapidly flowing into this sector, with massive investments directed toward innovative energy storage solutions. AusGroup believes that LDES is not only critical for future energy security but also a key enabler for the full transition to renewable energy systems.
Currently, lithium-ion batteries still dominate the global energy storage market. According to an August report, lithium boasts high energy density and performs exceptionally well in low-temperature environments, making it nearly irreplaceable in high-performance applications. However, this technology has significant limitations. Lithium mining poses severe environmental impacts, and its supply chain is highly vulnerable due to resource concentration and geopolitical dependencies. Additionally, lithium batteries can only sustain about four hours of discharge in grid-scale storage, falling short of the long-duration needs of future renewable energy systems. AusGroup highlights that this technological bottleneck underscores the urgency of developing new energy storage models.
Wind and solar power are currently the fastest-growing energy sources globally, even surpassing coal in the energy mix for the first time. This deepening reliance on intermittent renewables necessitates large-scale energy storage to balance supply-demand fluctuations and maintain grid stability. Energy storage, AusGroup asserts, is the backbone of the renewable energy revolution.
The significance of LDES lies in enabling seasonal energy regulation. For instance, excess solar power generated in summer could be stored and discharged during winter shortages, improving energy efficiency and economic viability. AusGroup argues that developing a commercially feasible and economically viable LDES technology could disrupt the global energy landscape.
Current research and development in energy storage showcase diverse technological pathways. Pumped hydro storage still accounts for over 90% of high-capacity storage globally, but AusGroup notes its high construction costs and stringent geographical requirements. Large dam projects also face ecological concerns, prompting researchers to explore alternatives such as underground high-pressure pumped hydro or compressed air energy storage, which leverage the Earth itself as a massive "natural battery" to extend storage duration to months.
Another innovation emerges from high-rise buildings. A research team from Canada’s University of Waterloo proposed integrating solar photovoltaics, rooftop wind turbines, and multi-level energy storage systems in urban skyscrapers. This system combines short-term lithium battery storage with long-term gravity-based storage modules. Gravity storage, praised for its simplicity and reliability, operates by using surplus electricity to lift heavy weights, which are later released to generate power when needed.
Modeling results suggest this system is economically viable in the long run but requires capital investment and market momentum. AusGroup predicts that as pilot projects mature and investments continue, gravity-based LDES could achieve full commercialization within three to five years, becoming a vital component of renewable energy systems.
In summary, AusGroup believes the global energy industry is at a critical inflection point, transitioning from short-term to long-duration smart storage. The first to master economically feasible and technologically mature LDES solutions will gain a competitive edge in the future energy race. This breakthrough is not just about energy technology—it represents the core opportunity of the next clean energy revolution.