Wind and solar industries have grown rapidly in recent years but they still supply only a small fraction of global electricity. The continued growth of these industries to levels that significantly contribute to climate change mitigation will depend on whether they can compete against alternatives that provide high-value energy on demand. Energy storage can transform intermittent renewables for this purpose but cost improvement is needed. Evaluating diverse storage technologies on a common scale has proved a major challenge, however, owing to their widely varying performance along the two dimensions of energy and power costs. Here we devise a method to compare storage technologies, and set cost improvement targets. Some storage technologies today are shown to add value to solar and wind energy, but cost reduction is needed to reach widespread profitability. The optimal cost improvement trajectories, balancing energy and power costs to maximize value, are found to be relatively location invariant, and thus can inform broad industry and government technology development strategies. W ind and solar energy technologies have attractive attributes including their zero direct carbon and other air-pollutant emissions (during operation) 1,2 , their low water withdrawal and consumption requirements 3 , the speed with which they can be installed 4 , and the flexibility in the scale of their installations 5,6 . Innovation in these technologies has taken off in the past two decades 7 . Levelized electricity costs for both technologies have been dropping over the past few decades, with photovoltaics costs falling exceptionally quickly, by two orders of magnitude over the past 40 years 8,9 . The installed bases of solar and wind have grown markedly in recent decades, each at approximately 30% per year on average over the past 30 years, but together still supply only a few per cent of global electricity 9 . Although the global solar and wind energy resources are large, these technologies do not measurably contribute to climate change mitigation at current installations levels.A variety of government policy-based incentives have supported the growth in solar and wind energy technologies in recent decades 10,11 , but continued, rapid growth to levels that can help meet climate change mitigation goals will depend on whether the adoption of wind and solar can be made self-sustaining. Low-cost storage can play a pivotal role by converting intermittent wind and solar energy resources, which fluctuate over time with changes in weather, the diurnal cycle, and seasons 12 , to electricity on demand that can be sold when most profitable, thereby increasing the value and attractiveness of these technologies to investors 13,14 . However, storage costs need to improve to achieve sizable adoption 15,16 . Quantifying the cost reduction needed has proved challenging and is the topic of this paper.A range of stationary, large-scale energy storage technologies are in development 17 . These technologies have widely varying power and energy costs. S...