Energy Storage: The Missing Piece for the Energy Transition
What you need to know:• Due to the fluctuating levels of energy produced on an hourly basis by renewable energy sources, energy storage is required to smooth out supply and demand
• The grid is becoming increasingly unstable due to its old age and extreme weather conditions, and is not set up to accommodate a net-zero system
• Small and mid-cap players in the space are down over 60% since 2021, making today’s valuations a great entry point
Why Do We Need Energy Storage?
Intermittent Supply from Renewables
Solar and wind energy cannot produce energy 24/7 since there is not constant sunshine or wind in most regions. The levels of energy generated in a given hour vary based on weather, time of day, and the season. Thus, for the renewable energy transition to progress forward, we need to find solutions that can effectively store energy into the future (both short-term and long-term) in order to smooth out supply and demand. A typical energy consumption and generation pattern can be seen in Figure 1 below; ideally, grids can store excess energy during the lowest consumption hours and deploy (discharge) it in the higher consumption hours. The Fraunhofer Institute of Solar Energy estimates that if the grid transitioned to 80% renewables, about one month of energy would need to be stored at all times for stability (rising to two months at 90%).
Outages & Cost Savings
Furthermore, energy storage is needed to provide backup power in the event of an outage or emergency (i.e., for critical infrastructure, hospitals, and data centres) if the globe insists on moving away from fossil fuels. Lastly, energy storage can reduce the overall cost of energy by reducing energy generated during peak hours.
Adoption of Renewable Energy
While the adoption of renewable energy has been slower than most expected, the transition is inevitable over the coming decades as costs to deploy renewable projects continue to decrease. The IEA estimates that 95% of the increase in global power over the next five years will come from renewable sources. While we think peak fossil fuel demand will likely occur into the 2030s/2040s, the globe needs to set up its energy systems to accommodate for the intermittent supply as outlined above. The energy transition simply cannot occur without adequate energy storage; BloombergNEF estimates that the globe will install 411 GW of energy storage by 2030, a 15x from current levels (Figure 3).
Electrovaya is engaged in developing, manufacturing and marketing of portable power technology products and services using its patented lithium ion SuperPolymer® technology. Co.'s main businesses include: (i) Electric vehicles, whereby Co. are developing power-system designs for clean transportation applications; (ii) Stationary storage for energy grid systems, telecommunications and new greenenergy solutions such as solar and wind; (iii) Mobile computing, consisting of Co.'s proprietary Lithium Ion SuperPolymer ® rechargeable batteries for the notebook market and (iv) Other specialty applications, including aerospace and defence.
Jericho Oil is an oil and gas company engaged in the acquisition, exploration, development and production of overlooked and undervalued oil properties in the mid-continent region of the United States.
Mincom Capital is a capital pool company. The principal business of Co. is to identify and evaluate businesses or assets with a view to acquiring these businesses or assets by way of purchase, amalgamation or other means.
Philippine Metals is a mineral exploration stage company engaged in the exploration of its exploration and evaluation assets, located in the Philippines. Co. has not been able to identify a known body of commercial grade ore on any of its exploration and evaluation assets. The ability of Co. to realize the costs it has incurred on these exploration and evaluation assets is dependent upon Co. being able to identify a commercial ore body, to finance its exploration costs and to resolve any environmental, regulatory or other constraints which may hinder the development of the exploration and evaluation assets. Co. has not earned any revenues and is considered to be in the exploration stage.
Spark Power Group Inc Formerly known as Canaccord Genuity Acquisition Corp. Spark Power Group Inc, formerly known as Canaccord Genuity Acquisition Corp, is a Canada-based provider of electrical power services to industrial, commercial, institutional, renewable, agricultural and utility customers across North America. The Company provides variety of services, such as High voltage , Renewable, Laboratory and testing, Monitoring and maintenance, Crew assist and mutual aid and Sales and rentals. The Company is focused on achieving renewable and sustainable on-site power solutions, such as Green Energy Solution, Energy Storage, Energy Efficiency, Energy Aware, On-Site Power and Electrical Vehicle Charging. The Company serves the high, medium and low voltage industries with a range of equipment sales, rentals, modular substation installations, design and repair services.
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