Start investing in battery storage now

That's what Laurent Segalen of Megawatt-X advised, as he and co-panelist, Frederic Palanque of Conquest, discussed in detail their views on energy investment in the 2020s.

Transitioning from subsidised renewables to increased merchant risk is one of several challenges investors in energy transition are facing; another is the need to connect the power produced to the consumer and the grid more efficiently. Part of the answer is battery storage, one of the topics discussed in detail on the last day of our Global Summit Online.

Laurent Segalen, managing partner at Megawatt-X, treated delegates to a short presentation, outlining the rapid development of grid-scale batteries. Citing data from automotive expert Sandy Munro, Segalen said the cost of batteries could drop as low as $61/kWh by 2022, from around $108 currently.

As a result, he warned interested investors to get in on the sector now. “This is happening, so you should start investing now and learn because there’s a lot of learning to be done,” he urged. “If you wait three, four or five years until everything is mature, the catch-up will be too big.”

His co-panelist, Frederic Palanque, a partner at Conquest, also shared his firm’s experience when looking into investing in batteries two years ago, and the rapid transformation the industry has undergone since then.

That’s not all attendees heard as our two panelists also discussed improving grid efficiency, the significance of Europe’s Green Deal and their views on ESG concerns surrounding batteries.

Lawrence Slade, chief executive of the Global Infrastructure Investor Association, moderated the discussion.