Navigating Federal SR&ED and Innovation Incentives in 2026
With the start of 2026, the landscape for Canadian innovation funding has fundamentally shifted. ...

Over the past two decades, renewable energy production technologies have significantly improved, fundamentally transforming the global energy landscape. Wind turbines, solar panels, and other renewable energy systems have become increasingly efficient and cost-effective, leading to widespread adoption and a significant increase in renewable energy capacity worldwide. However, as renewable energy sources began to play a more substantial role in energy production, the lack of suitable storage solutions to effectively harness their intermittent production patterns emerged as a critical challenge. The mismatch between energy production and consumption times highlighted the necessity for robust and efficient energy storage systems.
This lack of suitable storage technologies limited the potential of renewable energy sources, preventing them from becoming a key part of a reliable energy grid. In recent years, with the widespread use of lithium-ion batteries and the birth of innovative approaches like thermal energy storage and pumped hydro, the gap between production and consumption patterns is slowly getting bridged, paving the way for a more resilient and sustainable energy future. Fortunately, this sector has also evolved, with innovative storage technologies now beginning to address these challenges, enabling a more reliable and resilient energy grid. This article assesses the current renewable energy storage solutions and identifies areas for further improvement to fully capitalize on the potential of renewable energy sources.
Energy storage solutions have seen substantial advancements since the early 2010s, when the growing deployment of renewable energy sources like wind and solar began to outpace traditional storage methods. Initially, the energy grid relied heavily on pumped hydro storage, a well-established technology that, while effective for large-scale storage, was limited by geographic and infrastructural constraints.
Around 2010, lithium-ion batteries emerged as a game-changer in energy storage, driven by advancements in consumer electronics and electric vehicles. These batteries, known for their high energy density and efficiency, began to be adapted for grid-scale storage, providing a more flexible and widely applicable solution. By the mid-2010s, the cost of lithium-ion batteries had dropped significantly, leading to their rapid adoption for storing excess renewable energy and smoothing out the intermittency of solar and wind power. This period also saw the development of other innovative storage technologies, such as flow batteries and thermal storage systems, which offered new ways to store energy over longer durations and in larger quantities.
While the widespread adoption of lithium-ion batteries has greatly improved the compatibility of energy storage with renewable energy production, it has also introduced new environmental and social challenges. The surge in demand for lithium-ion batteries has led to concerns over the environmental impact of their production, including the mining of raw materials like lithium, cobalt, and nickel. The extraction and processing of these materials can result in significant environmental degradation, including habitat destruction, water pollution, and high carbon emissions. Beyond environmental issues, the rapid expansion of lithium-ion battery production has also led to serious social consequences. Many of the raw materials required for these batteries are sourced from regions with weak regulatory oversight, leading to exploitative labor practices, including child labor, particularly in cobalt mines. The mining activities often occur under dangerous conditions, with workers exposed to hazardous substances without adequate protection. Furthermore, the influx of mining operations has led to social displacement and conflicts over land and resources, exacerbating inequality and poverty in affected communities. Addressing these social impacts is essential to ensuring that the transition to renewable energy and battery storage does not come at the expense of human rights.

Salt-based thermal energy storage, particularly using molten salt, began gaining attention in the 1980s, especially in concentrated solar power (CSP) plants. A significant breakthrough occurred during the Solar Two project in the United States in the 1990s, which demonstrated the effectiveness of molten salt in storing thermal energy, solidifying the technology as a prime candidate for renewable energy storage.
This method consists in heating a mixture of sodium and potassium nitrates to temperatures exceeding 500°C. The stored energy is held in a hot tank and can be used to generate electricity even when solar input is not available, such as during nighttime or cloudy conditions.
Molten salt storage systems offer several advantages, including high energy density, the ability to store energy for extended periods, and cost-effectiveness over the long term. These attributes make them particularly well-suited for large-scale applications where a reliable and continuous power supply is essential. The technology has been widely adopted in CSP plants in regions with abundant sunlight, such as the Middle East, Spain, and the southwestern United States.
As CSP technology continues to evolve, the role of molten salt storage is expected to grow, with ongoing research aimed at improving efficiency, reducing costs, and exploring new applications beyond solar power. Innovations such as advanced materials and single-tank thermocline systems could further enhance the performance and scalability of molten salt storage, solidifying its role in the global transition to renewable energy.

Among more recent emerging energy storage technologies, solid-state batteries, hydrogen storage, and gravity-based energy storage are particularly promising but not yet fully developed for widespread production-scale use. Solid-state batteries, while offering higher energy density and safety compared to traditional lithium-ion batteries, still face challenges in manufacturing scalability and cost. Hydrogen storage, which involves producing hydrogen through electrolysis and converting it back to electricity using fuel cells, holds great potential for long-term storage and heavy-duty applications but requires significant advancements in infrastructure and cost reduction to become commercially viable. Gravity-based energy storage, such as Gravitricity, is an innovative concept that uses excess energy to lift heavy weights and then generates electricity by lowering them, but it is still in the experimental stage, with limited installations and further technological refinement needed. These technologies, though not yet ready for large-scale deployment, are expected to play a crucial role in the future of renewable energy storage as they mature.
If we want to transition renewable energy into the primary global power source, several steps must be undertaken. This would include scaling up renewable energy infrastructure, such as solar, wind, and hydro power, to increase capacity and ensure widespread deployment. Continuing the development of energy storage technologies is essential to optimize the management of the intermittent nature of renewable sources. Modernizing the electrical grid to accommodate and efficiently distribute renewable energy is also crucial, as is implementing supportive policies and incentives to drive investment and innovation. This would most likely require the implementation of large-scale smart grids, capable of monitoring energy consumption trends and allocating resources in real-time. Collaboration between the public and private sectors, alongside efforts to enhance energy efficiency and raise public awareness, will further support this transition. By integrating these strategies, we can establish a sustainable energy future that reduces reliance on fossil fuels, lowers carbon emissions, and addresses climate change effectively.
Want to learn about funding opportunities for your Renewable Energy project? Schedule a free consultation with one of our experts today!
Explore our latest insights
More arrow_forward
With the start of 2026, the landscape for Canadian innovation funding has fundamentally shifted. ...

Smart contracts execute deterministic logic on blockchains, providing immutability, auditability ...

In today’s interconnected economy, the path to rapid growth lies beyond domestic borders. Interna...

While gauging the SR&ED eligibility of our clients’ projects, we often find that they are afr...