A series on emerging energy trends and opportunities from IFC
Battery technology is evolving at a breathtaking pace. As performance improves and costs fall, batteries are already critical for consumer electronics, such as mobile phones, and are paving the way for the electric vehicle market. The battery revolution doesn’t end there. Battery systems are also transforming intermittent renewable energy—such as solar and wind—by making them much more financially attractive. Investors are taking notice.
But while the versatility of batteries makes them attractive, it is difficult to determine their economic value. Understanding where and why batteries are most successful remains challenging, as each situation is different based on power-to-energy ratios, project size and complexity, the level of built-in redundancy, and local regulations. Regardless of their application, batteries have quickly become a new asset class with a multitude of uses.