Battery energy storage project investment funds

Why is PE investment in battery energy storage growing?

PE investment in battery energy storage systems is surging, fueled by their high return potential and growing energy transition demands. PitchBook data shows that PE investments in energy storage and infrastructure have more than doubled since 2014, reaching $21.1 billion in 2024 alone.

Why should you invest in a battery?

Increased investment in battery manufacturing, improved supply chains and technological advancements have enhanced energy efficiency and storage capabilities, leading to lower costs.

Are battery funds a good investment?

As it stands, battery funds already have a relative lack of revenue security compared with other renewables trusts, for whom at least two-thirds of revenues are typically fixed. Stifel thinks the battery sector's attraction to investors would "increase meaningfully" if 30-40 per cent of revenues could be fixed for longer periods.

Is battery storage a fundamental part of energy infrastructure?

“Battery storage is now viewed as a fundamental part of energy infrastructure, much like LNG terminals and oil tankers,” said Gresham House infrastructure and energy transition investor Lefteris Stakosias. Stakosias said this investment boom reflects a broader shift in the global energy market toward renewables.

Are battery projects a good investment?

As a result, returns are reaching up to 30%. David Scaysbrook, cofounder of Quinbrook Infrastructure, highlighted that some battery projects can even achieve payback periods as short as three years, making them an increasingly attractive investment for PE firms.

Is battery storage a good investment?

Debt financing also plays a strategic role in cashing in on the potential for high returns, with storage projects often securing leverage between 60% and 80% of project costs, contingent on revenue certainty. Despite the strong return prospects, battery storage investments also have notable risks.