In the wake of increasing the share of renewable energy-based generation systems in the power mix and reducing the risk of global environmental harm caused by fossil-based generation systems, energy storage system application has become a crucial player to offset the intermittence and instability associated with renewable energy systems. Due to the capability to store large amounts of energy in an efficient way, redox flow batteries (RFBs) are becoming the energy storage of choice for large-scale applications. Vanadium-based RFBs (V-RFBs) are one of the upcoming energy storage technologies that are being considered for large-scale implementations because of their several advantages such as zero cross-contamination, scalability, flexibility, long life cycle, and non-toxic operating condition. This review presents the current state of the V-RFB technology for power system applications. The basic working operation of the V-RFB system with the principle of operation of its major components, the design considerations, and the limitations of each component are discussed. It presents technical information to improve the overall performance of the V-RFB by considering the materials of the cell components, modeling methods, stack design, flow rate optimization, and shunt current reduction.INDEX TERMS Energy storage system, flow battery, renewable energy, vanadium redox flow battery.