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Integrating renewable energy is one of the most effective ways to achieve a low-carbon energy system. The high penetration of variable renewable energy, such as wind power and photovoltaic, increases the challenge of balancing the power system. Energy storage technology is regarded as one of the key technologies for balancing the intermittency of variable renewable energy to achieve high penetration. This study reviews the energy storage technology that can accommodate the high penetration of renewable energy. The basic energy storage technologies that can accommodate time-scale variation are reviewed first. The role of energy storage in the generation, transmission, distribution, and consumption for the high renewable energy penetration system is then analyzed. The supporting energy storage policies in the United States, the United Kingdom and China are summarized. Specific suggestions are proposed from the perspectives of technology, business and policy. This paper provides guidelines for planning energy storage to enable a high renewable penetration power system.