Morgan monaco energy storage

Why is energy storage important?

Continued expansion of intermittent renewable energy, ESG-focused investments, the growing versatility of storage technologies to provide grid and customer services, and declining costs for key components like lithium-ion batteries all played a significant role in driving the investment and development of energy storage.

How many energy storage financing and investment deals were completed in 2024?

Through the first three quarters of 2024, 83 energy storage financing and investment deals were reported completed for a total of $17.6 billion invested. Of these transactions, 18 were M&A transactions, up from 11 transactions during the same period in 2023.

Will energy storage growth continue through 2025?

With developers continuing to add new capacity, including 9.2 GW of new lithium-ion battery storage capacity in 2024 through November 2024 and comparable levels of growth expected through the fourth quarter of 2024, energy storage investments and M&A activity are expected to continue this trajectory through 2025.

What challenges do energy storage resources face?

Energy storage resources present a distinct set of challenges given their unique nature: unlike conventional or renewable generation, energy storage resources must be charged with electric power, which will sometimes (but not always) be provided by the offtaker.

How has the IRA impacted the energy storage industry?

The energy storage industry has continued to progress over the course of 2024 and into 2025, buoyed in significant part by the federal income tax benefits in the form of tax credits enacted under the IRA. Energy storage was one of the major beneficiaries of the IRA’s new rules on both the deployment and manufacturing sides.

Will energy storage grow in 2024?

The energy storage sector maintained its upward trajectory in 2024, with estimates indicating that global energy storage installations rose by more than 75%, measured by megawatt-hours (MWh), year-over-year in 2024 and are expected to go beyond the terawatt-hour mark before 2030.