In the interest of environmental protection, energy systems around the world must undergo fundamental transformation. Decarbonizing power generation is a cornerstone of the energy transition, and significant progress has been made in building out renewable energies such as wind and solar power to replace power generation using fossil fuels. There is broad consensus that growth in renewables needs to accelerate, but this will bring new challenges. Since wind and solar are dependent on weather conditions, they are intermittent, unlike conventional power plants which provide constant baseload power. This raises the concern that power grids could become unreliable, with accompanying increases in electricity prices, as the proportion of renewable energy increases. Nevertheless, it is important to note that in many countries wind and solar are now the cheapest sources of electricity. That competitiveness has been highlighted by the recent spikes in electricity prices in Europe, which are partly the result of the rising cost of fossil fuels. This increases the competitive advantage of renewables.
If power grids accommodate a proportion of renewables, the energy transition will be at risk. More electricity storage solutions will be needed, to ensure that power grids are not a bottleneck in the energy transition.
Scalable, affordable electricity storage technologies are already widely available, and among these technologies, battery energy storage systems (BESSs) have emerged as a frontrunner. For good reason: BESSs are based on proven and scalable technologies. The battery storage sector has the potential to achieve growth rates similar to those achieved by wind and solar over the past decade. BESSs are also an attractive investment opportunity with higher expected returns than wind and solar plants, and an effective way to diversify an investment portfolio.
Our goal at Tion Renewables is to lead into a new era of sustainable energy. We hope this white paper will answer questions, provide food for thought, and dispel any doubts about the technical and commercial viability of BESSs. We hope you enjoy reading our white paper and invite you to share your thoughts with us.