Is battery energy storage a savior?

Today, technology advances and dramatic cost decreases combine to set up battery energy storage as the savior for both renewables and the overarching electric grid as power demand soars and Congress rapidly phases out tax credits for wind and solar energy.

Why should you invest in a battery?

Increased investment in battery manufacturing, improved supply chains and technological advancements have enhanced energy efficiency and storage capabilities, leading to lower costs.

Are battery storage projects a symbiotic relationship?

Close to half of all battery storage projects are paired with solar or wind energy projects as part of their symbiotic relationship. “Without batteries it would be mayhem,” said Izzet Bensusan, founder and CEO of the Captona energy transition investment firm. “The utilities are realizing that without batteries they cannot manage the grid.

Is battery storage a fundamental part of energy infrastructure?

“Battery storage is now viewed as a fundamental part of energy infrastructure, much like LNG terminals and oil tankers,” said Gresham House infrastructure and energy transition investor Lefteris Stakosias. Stakosias said this investment boom reflects a broader shift in the global energy market toward renewables.

Why is PE investment in battery energy storage growing?

PE investment in battery energy storage systems is surging, fueled by their high return potential and growing energy transition demands. PitchBook data shows that PE investments in energy storage and infrastructure have more than doubled since 2014, reaching $21.1 billion in 2024 alone.

Is battery storage a good investment?

Debt financing also plays a strategic role in cashing in on the potential for high returns, with storage projects often securing leverage between 60% and 80% of project costs, contingent on revenue certainty. Despite the strong return prospects, battery storage investments also have notable risks.