Energy storage project construction team

Does project finance apply to energy storage projects?

The general principles of project finance that apply to the financing of solar and wind projects also apply to energy storage projects. Since the majority of solar projects currently under construction include a storage system, lenders in the project finance markets are willing to finance the construction and cashflows of an energy storage project.

What is a CO2 energy storage project?

The project plans to store excess energy from the grid that can be deployed when needed, taking excess energy from the grid and converting the CO2 gas into a compressed liquid form, which reduces the typical complexity and costs associated with storage.

What technology risks are associated with energy storage systems?

Technology Risks Lithium-ion batteries remain the most widespread technology used in energy storage systems, but energy storage systems also use hydrogen, compressed air, and other battery technologies. Project finance lenders view all of these newer technologies as having increased risk due to a lack of historical data.

Will a tax credit be available for energy storage projects?

However, with the passage of the Inflation Reduction Act of 2022, tax credits are now available for standalone energy storage systems, and thus lenders may be willing to provide bridge capital that is underwritten based on the receipt of proceeds from an anticipated tax equity investment, similar to renewable energy projects.

Will Washington lead the nation in advancing energy storage technologies?

Washington is well positioned to lead the nation in advancing energy storage technologies, so I’m pleased that Energy Secretary Granholm is today affirming our nation will continue to harness the talents and innovation of the leading scientists at the Pacific Northwest National Laboratory with this announcement.”

Where is Alliant Energy demonstrating a CO2 long-duration energy storage system?

Locations: Pacific, WI Project Summary: Through the Columbia Energy Storage project, Alliant Energy plans to demonstrate a compressed carbon dioxide (CO2) long-duration energy storage (LDES) system at the soon-to-be retired coal-fired Columbia Energy Center power station in Pacific, Wisconsin.