How about investing in energy storage power stations?
Investment in energy storage power stations offers tremendous potential, including 1. enhanced grid stability, 2. opportunity for renewable energy integration, and 3. economic
While energy storage is already being deployed to support grids across major power markets, new McKinsey analysis suggests investors often underestimate the value of energy storage in their business cases.
Energy storage systems are increasingly in demand to increase the effectiveness of solar power arrays, with the Energy Information Administration estimating in February that new utility-scale electric-generating capacity on the U.S. power grid will hit a record in 2025 after a 30% increase over the prior year.
Ancillary services that stabilize the power grid typically represent 50 to 80 percent of the full storage revenue stack of energy storage assets deployed today. This is observed across multiple mature storage markets but is expected to decrease to less than 40 percent by 2030.
The revenue potential of energy storage is often undervalued. Investors could adjust their evaluation approach to get a true estimate—improving profitability and supporting sustainability goals.
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