Debt financing in the US' BESS space has crossed $4bn YTD 2024 and is closing in on last year’s mark of $4.5bn. The sustained momentum is driven by:
Growing Demand for Ancillary Services: With the ongoing rise in solar and wind capacity, the need for battery storage to provide ancillary grid services remains critical.
Strategic Energy Arbitrage: Developers continue to capitalize on BESS to store energy at low prices and sell it when prices peak, ensuring maximum profits.
Attractive Incentives: ITCs for stand-alone storage continue to draw both domestic and foreign investors.
Key Markets: Texas and California continue to dominate, accounting for over 50% of the raised capital.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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