This is a really thought provoking new report on how cheap energy storage totally changes the energy game. In the report, the Ember analyst provides a fascinating historical parallel to how grain storage totally changed the economics of farming and smoothed out market volatility. And now storage is doing that for the ultimate perishable commodity – energy. In short, the combination of renewables with cheap storage is what will usher in the age of energy abundance – and end the era of fossil fuels. A must read:
"The shift to renewables represents an agricultural revolution for energy, moving from searching and extracting scarce fuels to harvesting abundant sunlight in place. Much as granaries and refrigeration transformed food markets, storage will turn electricity from perishable to persistent, unlocking a new era of energy abundance."
New report out from Ember: Silos for Sunshine: we’ve mastered harvesting the sun, but storage is the gamechanger
byu/Epicurus-fan inenergy
by Epicurus-fan
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To see how this is being reflected in the markets, take a look at the growth of Tesla’s storage business and the rise in the stock price of EOSE. Other stocks in this space include FLNC, NRGV, NEE and others. And we are just at the beginning of this revolution, which has happened thanks largely to Chinese manufacturing bringing the prices of batteries down so quickly.
“Many of today’s electricity markets trade in hourly and 15-minute intervals. That structure exists not due to preference but by necessity — supply and demand must match instantly because storage has long been scarce. As storage expands, that constraint will ease, and markets will evolve much as they did for other perishable goods.
Perishables like milk once had to be sold daily in market squares or delivered door-to-door for same-day consumption before they spoiled. Then cold storage came in which let shops and households stock food for days and weeks, turning daily markets into weekly shopping trips. Storage reset the cadence of the market from day-to-day to week-to-week.
Electricity will likely follow the same path. Once power can be stored for a few hours, trading shifts from minute-to-minute scarcity to buying the cheapest energy within that few-hour window. As storage grows, that time window — and with it, the structure of the market — widens. Markets that once cleared every hour will clear across days or even weeks instead, with prices reflecting time-shifting rather than instant balancing. “
I have an investment in redwood materials.
The peace is really interesting
EOSE has some great advancements with how simple their battery fires are extinguished
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