This paper presents a vision of a future power system with "ubiquitous energy storage", where storage would be utilized at all levels of the electricity system. The growing requirement for storage is reviewed, driven by the expansion of distributed generation. The capabilities and existing applications of various storage technologies are presented, providing a useful review of the state of the art. Energy storage will have to be integrated with the power system and there are various ways in which this may be achieved. Some of these options are discussed, as are commercial and regulatory issues. In two case studies, the costs and benefits of some storage options are assessed. It is concluded that electrical storage is not cost effective but that thermal storage offers attractive opportunities.