Energy Storage Research
A Car Without Brakes
Opportunities In Electricity Storage
published 31st January 2023

Industry background research available to all professional investors under MiFID II as a minor non-monetary benefit

Electricity storage and especially long-duration storage is essential to deliver decarbonisation with a total addressable market of a similar order of magnitude to that for hydrogen, biofuels or carbon capture. It has the potential to become a major sub-sector of the energy market.



Key Takeaways:


  • Critical Role in Net Zero: Energy storage is as important as brakes on a car — key to unlocking a fully decarbonised, renewable-powered system.

  • Massive Opportunity:Total addressable market is huge — potentially reaching up to 355TWh — similar in scale to hydrogen and CCUS.

  • Segmented Storage Market: Storage must cater to multiple durations and use cases, spanning short-duration lithium-ion to long-duration pumped hydro and CAES.

  • Technology Variety: Diverse technologies (e.g. flow batteries, thermal, supercapacitors, compressed air, gravity, lithium-ion) will co-exist to cover different grid needs.

  • Investment Exposure:Multiple listed companies and funds offer exposure to key segments, with some leaders (e.g. Drax, SSE, Gore Street) already established and new technologies like gravity, vanadium flow, and hydrogen on the rise.

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    The requirement for energy storage in a market dominated by intermittent renewables is essential. We would go so far as to say that designing a renewable energy system without storage is like designing a car without brakes, it is that essential