Texas has been having problems with its power grid lately. It’s been telling residents to postpone running large appliances and to increase their home temperature to avoid rolling blackouts.
And this just highlights the need to fast-track the construction of different energy storage solutions (ESS) for today’s society.
There are simply too many people using too much energy for the traditional, carbonized power grid. While many areas are using solar and wind power, these types of sustainable energy are intermittent. Indeed, the sun is not always shining, and the wind is not always blowing.
So, to fully transition to the more sustainable energy choices, we need back-up energy for times when there’s no sun or wind.
Currently, we only have enough energy stored to cover less than 1% of all energy used. Experts say we need 30% to 35% of all clean energy backed by ESS to fully transition.
This seems like a tall order, but there’s a lot of development in the industry of late. In fact, it’s estimated to grow 30-fold by 2030.
Right now, there are two primary ways to store energy – lithium-ion batteries, which are the most common, and iron flow batteries, which have the most potential.
The problem with lithium-ions is the amount of storage they hold is not enough to sustain for long periods. They can only really store around four to 10 hours’ worth of energy.
On the other hand, iron flows decouple the power and the charge. This makes them every bit as economically stable because they increase energy without increasing power, and vice versa.
We see both as sound investment opportunities during the 2020s. And we believe they’ll be the main players of the energy storage industry.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.