Whether it’s chasing net-zero goals or training the next GPT, the rate-limiting step is the same – a firm and flexible grid. As demands on the grid intensify, variable renewables are moving to the forefront with global capacity projected to almost triple by 2030(1).
But with renewables comes variability. When excess low-cost solar floods the grid at noon or wind gusts through the night, the grid often can’t absorb or shift the surplus. The result is clean energy wasted—with billions of dollars lost to curtailment costs. For countries like Germany, the cost of this mismatch went over $3 billion in 2023(2). The grid needs a new way to deliver flexibility and reliability. Enter Long Duration Energy Storage, or LDES.
Figure 1: LDES balances renewable variability across durations.
By storing excess energy and releasing it when needed, LDES creates the operating conditions renewables need to scale. So far, the industry has treated LDES as a hardware and a material science game, focused on improving chemistries, heat retention, and energy density. But to keep pace with the explosive growth of renewables in the energy mix, LDES must scale nearly 50 times faster than current projections, from less than 1 TW today to 8 TW by 2040(3).
Doing so will require rethinking LDES as a dynamic asset, not a passive one like solar PV, where how and when energy is stored, dispatched, and monetized matters. The next big unlock in LDES scalability will come from an intelligence layer. Welcome to LDES’s AI era!
From forecasting load curves to fine-tuning charge-discharge cycles and playing smart in energy markets, AI is set to become the control center of LDES. These models continuously learn from real-time and historical data to reduce degradation, extend asset life, and unlock new value streams. The goal? Assist with ~40% drop in costs and ~10% increase in roundtrip efficiency(4) – right in the sweet spot for inter-day and multi-day storage. As this intelligence layer scales, these long-duration, low-degradation LDES formats will start pulling ahead of lithium-ion in critical grid use cases such as load management services, firming for PPAs, and utility resource planning.
Table 1: Required improvements in LDES costs and roundtrip efficiency.
The intelligence layer in LDES isn’t just a concept—it’s already taking shape across the market. A new class of AI-native startups are emerging, building intelligence into the storage architecture from day one. Alongside them, established energy storage providers are beginning to integrate AI capabilities into their products and services, layering in predictive controls and market-responsive dispatch strategies.
Figure 2: Emerging landscape of AI solutions to maximize LDES(6).
These emerging AI systems matter because in arbitrage, margins are slim, and timing is everything. Smart controls will unlock the ability to stack multiple revenue streams for LDES projects. Without these AI capabilities, LDES systems risk becoming a black box — harder to optimize, harder to trust, and even harder to finance.
Real-world deals are already reflecting the importance of AI in securing premium offtake agreements for energy storage. Earlier this year, Gore Street Capital selected GridBeyond to optimize its 200 MW Big Rock system in California(5). GridBeyond won the deal thanks to its AI-based Bid Optimizer, which aligns market price forecasts with simulations of battery storage, renewable, and thermal assets to maximize returns in the CAISO market. UBS Asset Management has integrated multiple AI platforms—including ACCURE’s battery intelligence, Avathon’s industrial AI platform, and Habitat Energy’s AI optimizer—across its 730 MW ERCOT battery portfolio, reducing maintenance costs by 40% and significantly improving offtake economics(7).
Energy markets are evolving toward hourly power swaps and performance-linked PPA structures, making AI the backbone of competitive LDES projects. In a space where every cycle counts, intelligence could be the edge that makes LDES not just viable, but scalable.
Sources:
- International Renewable Energy Agency. 2024. Renewable Energy Highlights 2024.
- Long Duration Energy Storage Council. 2024. Annual Report 2024.
- Long Duration Energy Storage Council. 2024. Annual Report 2024.
- US Department of Energy. 2023. Pathways to Commercial Liftoff: Long Duration Energy Storage 2023.
- GridBeyond. 2025. News: Energy management insights for better business decisions. https://gridbeyond.com/gore-street-capital-selects-gridbeyond-to-optimize-200mw-energy-storage-system-in-california/
- CB Insights
- Carbon Credits. 2025. How AI is Revolutionizing Battery Storage for a Greener Future. https://carboncredits.com/how-ai-is-revolutionizing-battery-storage-for-a-greener-future/
