Instantaneous load demand variations and fluctuations introduced by renewable energy sources (RESs) to the system, pose various challenges to the operation of the grid. Significant support to the grid can be provided by energy storage systems (ESSs) strategically placed and sized. In the presence of ESSs combined with RESs proximate to load centres, transmission losses are minimized and grid infrastructure upgrades are deferred, due to local generation and consumption of electric energy. This is without the need to transfer energy from remote power plants. Furthermore, ESSs introduce considerable flexibility to electric energy, which can now be consumed when it is needed the most (e.g. during the on-peak period). As a result, the loading levels of the grid components are reduced and the terminal voltages are maintained within the allowable limits. This chapter presents an in-depth study of battery storage for communities and an analysis of major battery-storage technology and application. This includes another special form of distributed energy storage - the electric vehicle.