Energy storage to reduce peak-load demands on utilities is emerging as an important issue to address the intermittency of renewable energy resources. Wind energy produced in the middle of the night may be wasted unless it can be stored, and, conversely, solar energy produced could be used after the sun goes down if we had an efficient way to store it. The role of fuel cells in energy storage is an emerging issue and it is being compared with regular batteries for the advantages of fuel cells over the latter. PEM (Polymer Electrolyte Membrane) fuel cell is one of the technology/tools being looked into for its effectives and durability in energy storage. PEM fuel cell uses an electrochemical process to convert hydrogen gas into electricity. But the performance and durability of PEM fuel cells are significantly affected by the various components used in them. This paper attempts to investigate those issues and tries to provide information regarding the various factors affecting its performance and durability.