Is lithium ion the future of stationary energy storage?

The second gap involved technology. "I didn't believe lithium ion was the future of stationary energy storage," Michaelson says, referring to fixed-location energy storage systems for homes, businesses, and industrial facilities—distinct from mobile applications like electric vehicles. The third gap went deeper than business fundamentals.

Is energy storage a good investment?

Imbalances, in return, are driven by more renewables. Energy storage is therefore well-positioned for an electricity market dominated by renewables and represents an interesting new asset class. It’s also a potential hedge for players who already have classic renewable portfolios.

Are large-scale lithium-ion battery projects viable?

Recent data shows that lithium-ion battery costs have fallen by about 80% over the last decade, making large-scale projects viable (Source). Additionally, advances in storage technologies and economies of scale will further reduce costs, making storage accessible to a broader range of companies and regions.

Are energy storage assets a power trading asset?

In contrast to wind and solar, where the asset owner simply sells power into the grid when produced, energy storage assets are power trading assets. Different revenue streams can be stacked, and continuous trading decisions have to be made on whether to buy power, sell power, or participate in ancillary services.

Can redox flow batteries reduce the environmental impact of lithium mining?

Since sodium is more abundant and less costly than lithium, this technology could help mitigate the environmental impacts of lithium mining. Redox flow batteries, which use liquid electrolytes stored in external tanks, offer a viable solution for long-duration, large-capacity storage applications.

Why do solar and wind farms need a solar system?

For solar and wind farm operators, the ability to store and control generation means greater security and efficiency. These systems also allow excess energy to be sold back to the grid during peak hours, generating additional revenue and stabilizing electricity prices.