Energy Storage System in Microgrids: Challenges and Opportunities

ABSTRACT This paper presents a comprehensive review of the current landscape of energy storage systems (ESSs) within microgrid (MG) applications, focusing on recent technological advancements, practical deployments, and performance evaluations. While numerous studies address ESS technologies, this work uniquely integrates a comparative framework that analyzes the trade‐offs among key systems, including lithium‐ion, flow, thermal, mechanical, and hydrogen storage. Unlike prior reviews, this study combines technical analysis with real‐world case studies to evaluate environmental impact, lifecycle cost, and integration strategies. Moreover, it proposes actionable pathways for ESS adoption in underresourced regions, adding a socioeconomic dimension often overlooked in earlier literature. This article adopted the qualitative research method using secondary data. The review article discusses the current state of ESS in MGs, with a particular emphasis on lithium‐ion batteries, flow batteries, thermal storage, mechanical storage, and hydrogen storage. It explores the advantages and limitations of each technology and highlights recent advancements in their design and application. The review article proposes strategies to address these challenges, such as developing new materials with higher energy density, improving recycling techniques, and implementing supportive policies and regulations. To further understand ESS deployment‐supportive frameworks, studies should look into novel funding sources for ESS deployment, particularly in impoverished areas, while keeping policy and regulation in mind.