Improvements to battery technology is set to play a key role in a transition to clean energy. It is estimated that energy storage will have to grow exponentially in order to meet the world’s sustainable energy goals.
Emerging trends in energy storage, such as the decreasing costs of lithium batteries and state mandates for energy storage, indicate that we are poised for a boom in the battery and energy storage industry, along with increased corporate investment, into and beyond 2021. With more and more corporations making pledges to become carbon-neutral or 100% renewable, many are entering into power purchase agreement contracts with energy storage projects. VC companies invested more than $500 million in battery startups alone in 2020. These clean energy contracts serve as a way to increase storage project financing and reduce reliance on fossil fuels.
Renewable and clean energy will continue to garner attention as President Biden has pledged to tackle climate change by investing in energy innovation, offering incentives to companies that offer low-carbon solutions, and tie the US economic recovery to clean energy through the creation of jobs and infrastructure. There has been a shift in public opinion towards the importance of climate change and as a result, consumer demand for renewable and clean energy technology has increased drastically over the past several years. Due to this increased consumer demand and the new administration, alternative energy funds have already attracted more than $5.2 billion in 2021. We expect this trend to continue, with vast opportunities innovation and investment.
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