Electric Vehicles and Energy Storage

The Next Frontier in Transportation and Energy

In the dynamic landscape of the Electric Vehicle (EV) battery market, the United States is poised to become a significant player. This growth trajectory is propelled by Federal incentives, such as the Inflation Reduction Act, which aims to mitigate the impact of rising raw material costs. Major automotive companies are also contributing to this momentum with their anticipated orders. Regulatory bodies like FERC, SEC, and FASB play a crucial role in shaping the sector's financial landscape, classifying renewable energy storage assets based on their use. California, a pioneer in lithium-ion battery storage, is setting ambitious targets, aiming to surpass 10,000 MW by 2024. This approach of treating storage resources as transmission assets not only offers cost savings and sustainability benefits but also opens up opportunities for small and medium-scale businesses. Furthermore, participation in energy and operating reserve markets enhances grid reliability, ensuring a balanced supply-demand equation.

Executive summary

This growth trajectory is propelled by Federal incentives, such as the Inflation Reduction Act, which aims to mitigate the impact of rising raw material costs. Major automotive companies are also contributing to this momentum with their anticipated orders. Regulatory bodies like FERC, SEC, and FASB play a crucial role in shaping the sector's financial landscape, classifying renewable energy storage assets based on their use. California, a pioneer in lithium-ion battery storage, is setting ambitious targets, aiming to surpass 10,000 MW by 2024. This approach of treating storage resources as transmission assets not only offers cost savings and sustainability benefits but also opens up opportunities for small and medium-scale businesses. Furthermore, participation in energy and operating reserve markets enhances grid reliability, ensuring a balanced supply-demand equation.

Key findings

3. Iron Air Batteries: Iron-air batteries, such as those developed by Form Energy, offer the potential for multiday energy storage at a lower cost than lithium-ion batteries. In 2022, Form Energy secured a 20-year power purchase agreement with Great River Energy to deploy a 1MW/150MWh system
Accounting Treatment for Contract Revenue: Under the International Financial Reporting Standards (IFRS), revenue from energy storage contracts is recognized over the contract term when the service is provided

Who this is for

This report is for energy and cleantech executives.

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