Seyed Madaeni, the CEO of Verse, has developed Aria software that helps organizations procure the best clean power options for their business. Energy storage has emerged as a new asset class in the clean energy landscape due to technological advancements. Many energy storage projects involve large-scale lithium-ion batteries that can absorb excess renewable energy and reduce carbon emissions. These projects are owned by private investors who generate revenue by selling and trading electricity stored in these assets.
Buyers of power can benefit financially from investing in energy storage while reducing their carbon footprints. The Reuters Events Energy Transition Insights report predicts that energy storage will surpass solar as the leading technology for energy transition investments in the next three years. By charging these storage systems with renewable energy and deploying the energy strategically when the grid has high carbon intensity, organizations can take tangible steps toward decarbonization goals. Power purchase agreements can be used to invest in renewable projects like energy storage to align with corporate carbon reduction strategies.
Energy storage assets charged with renewable power can substantially reduce carbon emissions when operated strategically. Engaging in energy arbitrage, using storage to mitigate economic and energy costs while contributing to carbon reduction, presents a financial and emissions reduction proposition that some buyers are beginning to embrace. Buyers should understand their organizational objectives and approach energy storage investments with clear goals to build the right portfolio of assets.
As buyers consider investing in energy storage, they should be aware of regulatory considerations that may impact their investments. While regulations in the United States have progressed to include investment tax credit incentives for standalone energy storage, further regulatory support and clarity are essential to unlock the full potential of energy storage in carbon reduction. By pushing for regulatory frameworks that acknowledge the environmental benefits of energy storage, stakeholders can encourage investment and deployment to drive collective carbon reduction efforts.
The rise of energy storage as a new asset class presents organizations with the opportunity to reduce their carbon footprints while achieving significant financial benefits. The International Energy Agency reports that energy-related carbon emissions increased by 0.9% in 2022, emphasizing the importance of reducing carbon emissions to secure affordable, reliable, and clean power. By proactively investing in energy storage alongside traditional renewables like wind and solar, organizations can navigate the challenges of a shifting energy landscape, making informed decisions that benefit both their bottom line and the planet.
