More strategic mindset needed to accelerate investment in energy storage

According to EY, it’s been difficult for investors to get a clear view of the opportunities, business models and most suitable markets when it comes to energy storage. To change this, and increase funding for accelerated activity across the storage asset life cycle, the market must highlight the various entry points for investors and focus on creating an investable asset class for storage products that delivers the necessary returns.

Energy storage technology will inevitably become a cornerstone of the energy transformation currently underway in the Mediterranean region. With unsustainable high unemployment and a lack of secure affordable energy a common theme across the entire region. While China, the US and Germany once again hold the top three index positions, increased government proactively in setting renewables targets and auctioning generation capacity through competitive tenders is already impacting the rankings for several Mediterranean countries.

Egypt jumped two places to 37th, after re-entering the Index in March, following the auction of more than 4 GW under the Government’s new renewables program. Turkey and Morocco saw similar positive movements to 17th and 25th place respectively following the announcement of a national renewable energy action plan in Turkey and the financial close of phase two of Morocco’s mega-scale concentrated solar power project.

Other notable Index movements include India replacing Japan in 4th place as a result of a growing project pipeline and proposed reforms to address currency risk and increase the renewables obligation on major energy users. Meanwhile, South Africa’s commitment to procure an additional 6.3 GW of renewable energy capacity prompted a jump to 13th place. In Europe, Poland and Romania experienced upward movement to 27th and 34th place respectively. Previously paralysed by policy U-turns, Poland finally passed legislation to hold competitive auctions from 2016, while Romania’s Government is now talking to the market about how to catalyse renewables investment once again.

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