Energy Storage: An Electrifying Investment Opportunity Written By Davis Donley
W
hile the world moves away from carbon to wind and solar power, the energy storage market represents a $1.2 trillion opportunity as storage plays a key role in the electric grid’s transition to renewable energy. Energy storage is crucial in decarbonizing the energy grid because it can help mitigate the intermittency of wind and solar and help deliver power when required. While the cost of electricity from solar declined 89% in the last decade, renewables must be paired
with energy storage systems to deliver energy reliably. Due to the tailwinds of government subsidies and investment, a massive total addressable market, renewable energy’s dramatically declining cost curve, and the growing emphasis on ESG among institutional investors, the energy storage industry is a promising investment opportunity.
in Environmental, Social and Corporate Governance (ESG) themes. Investors have widely lauded the dozens of electric vehicle IPOs in the last couple years, such as Rivian and Lucid Motors. As capital pours into EVs and share prices climb dramatically, investors base their enthusiasm on government subsidies for EVs and the opportunity stemming from their addressable In 2021 alone, venture capitalists market. Investor sentiment surinvested $49 billion into climate rounding electric vehicles and EV tech amidst government subsidies components has reached high levels and increasing investment interest
FINANCE & ECONOMY
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