In an article for Energy Storage Journal –a quarterly journal dedicated to energy storage and smart market grids – Michael Wilkins, managing director of infrastructure finance ratings and head of environmental research at S&P Global, highlights the importance of risk assessment in making energy storage infrastructure commercially viable.
In the article, Wilkins highlights the incremental use of renewable sources in global energy systems. However, he notes that without energy storage systems – to compensate for fluctuation in supply of natural resources – renewables are unlikely to account for a majority share of a country’s power generation mix, and certainly unable to meet the global goal of being free of fossil-fuels by the end of this century.
Although in decline, the costs associated with energy storage technology are still relatively high and, therefore, storage projects require significant financing. But to become commercially viable the associated project risks – including those concerned with construction, operations, availability of resources, the market and the technology – need to be identified and assessed in order to increase transparency, mitigate impact and therefore ‘crowd-in’ investment.
Please read the full article online here.