PODCASTS

Battery + Storage

Only several years ago, Bill Gates blogged about the importance of entrepreneurship and continuing innovation in the storage space. Noting that his own investments in battery technology required him to digest a significant amount of technical and scientific research, Gates succinctly states, “Here’s the problem: Storing energy turns out to be surprisingly hard and expensive.”

Today, Gates’ observation is no longer accurate.

  • The global battery market is expected to experience geometric growth, reaching $662 billion in 2025. Energy storage projects worldwide are predicted to increase exponentially (from 9GW/17GWh in 2018 to 1,095GW/2,850GWh by 2040) (according to BloombergNEF). The domestic battery market alone is estimated to eclipse $100 billion in that same time frame.
  • Battery use cases are solidifying and at varying sizes and scales. Hardware and software integration between local and regional grids, behind-the-meter applications, and directly with renewable resource suppliers is revolutionizing capital deployment and changing assumptions about the externalities of power production. Grid-level batteries have enjoyed unprecedented market-penetration in the last several years, spurred by an 85% installed-cost reduction in $/kW for lithium-ion batteries (2010-2018)(Bloomberg). U.S. battery projects deployed in 2018 reached 311MW (777 MWh) (Energy Storage Monitor; Energy Storage Association), however, these amounts are predicted to double in 2019 and again in 2020.

The Troutman Pepper Locke Battery + Storage podcast will provide listeners with expert perspectives from power industry veterans during this lightning-paced period of technological change in the sector. We will bring you real-time opinions from battery and storage thought leaders, who are finding (unlike Mr. Gates’ outdated observation) that the technology is surprisingly easier and cheaper to utilize than ever before.

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Podcast Episodes

Background and Representation Highlights

The firm’s historic representation of electric industry clients, its project development and renewable energy expertise, has provided us with a springboard to understanding storage industry economic and technological precursors. We thus have experience working with early-adopter storage technology companies as the industry evolved. This early work has proven to be crucial to more recent representations as both grid-scale storage and distributed storage become more commonplace.

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Representative Matters

  • Represented a purchaser in the acquisition of a 5 MW portfolio of distributed battery storage systems in California.
  • Counseled a battery storage developer regarding the company’s real estate and project development matters for 20 MWs of battery storage.
  • Advised a Fortune 500 energy company in an energy management relationship and a long-term power and hedging agreement for ancillary services.
  • Represented a utility-scale battery storage manufacturer regarding battery supply, warranty, O&M and financing arrangements.
  • Counseled a utility client on energy storage tax depreciation issues, including unique issues related to a combination of energy storage and solar photovoltaic technology.
  • Represented an investor with respect to a $100 million portfolio of behind-the-meter battery storage systems in California.
  • Advised an early-stage developer in 300 MWs of utility-scale battery storage projects being developed in response to utility RFPs.
  • Represented a tax equity investor in a first-of-its-kind transaction involving tax equity financing for solar-plus-storage assets.
  • Counseled a startup developer with an aggregate 5 MW portfolio of residential battery storage systems being bid into ISO capacity markets.
  • Advised a supplier of solar photovoltaic systems and battery storage technology in a 25 MW portfolio of solar-plus-storage projects under PURPA contracts.
  • Represented an independent power producer in the acquisition of more than 60 MWs of large utility-scale battery assets in the Southwest.