Save the Date! On October 21, ESA will host a five-hour virtual finance event, made up of four individual sessions, including presentations, opportunities for Q&A, and a panel discussion. ESA is convening this event to provide critical information on opportunities, risks – and strategies to manage risks – for prospective investors in energy storage, including providers of equity and debt.
Registration is opening next week. All registrants will receive a virtual symposium pass and access to the recordings.
ESA Members: $375
Questions? Contact email@example.com
October 21, 2021 12:00 PM ET/9:00 AM PT – 5:00 PM ET/2:00 PM PT
Session I: The Rapidly Expanding and Changing Energy Storage Market
Part 1: The Growing Market for Energy Storage (presentation & Q&A – 30 minutes)
2020 was a breakout year for energy storage deployment, with more storage capacity installed than in the prior seven years combined. In 2020, energy storage was a $1.7 billion market, and is expected to grow to $7.6 billion per year by the middle of this decade.
This presentation will provide an overview of the types of investment opportunities in energy storage e.g., merchant vs. contracted, standalone vs. co-located/hybrid, distributed vs. bulk, as well as the regional markets in which growth is most likely to accelerate. The overview will conclude with a review of the macro factors and trends that might change market trajectory either higher or lower.
Attendees will understand the factors driving growth in energy storage market, the growing demand for financing and the attendant opportunities for investors.
Part 2: Prevailing capital structures and trends (presentation & Q&A – 30 minutes)
As energy storage transitions from a specialized investment/niche market to a more standardized and commercial market, the financing structures also change. This presentation will describe what is known and knowable about current deal flow, including the prevailing financial structures and sources of capital. Using this understanding as a foundation, the presentation will examine the trends in energy storage investment and the changing roles of different segments of the financial sector in providing capital for that growth.
Attendees will understand the amounts and types of financing that have supported the recent expansion of energy storage, and how the financing structures and providers are likely to change as the market continues to expand.
[15 minute break]
Session II: Analyzing the Risk/Reward Profile of Energy Storage Investment (presentation & case study)
Part 1: Analyzing Returns & Volatility (presentation & Q&A – 45 minutes)
Understanding and quantifying the risks of energy storage investment provides the basis for deciding whether to commit capital – debt or equity – to support the project. After describing various categories of risks – market, regulatory, technology, etc. – the presentation will show how the uncertainties/risks map into volatility of revenues and costs of the investment over various time horizons.
Attendees will understand the sources and implications of investment risks – types of risk, ranges of uncertainty and variances in outcomes, and the volatility of net revenues.
Part 2: A Brief Guide to Due Diligence for Energy Storage Assets/Projects (case study & Q&A – 30 minutes)
Because many potential investors, particularly lenders, are unfamiliar with energy storage projects, they need to turn to others to help analyze uncertainties and volatility to help them price the risks appropriately. Due diligence for storage is similar to other energy assets, but many key elements are unique and there is a significant premium placed on expertise and experience. Presentation will include an overview of some of the specialized professional services firms such as consultants and legal advisors who deal with energy storage and an example(s) of due diligence in a project finance context.
Attendees will gain an understanding on how to undertake due diligence on energy storage and how to find independent professional service firms to assist them.
[15 minute break]
Session III: Managing & Mitigating Energy Storage Risks
Part 1: The Risk Management Tookbox for Storage Investments (presentation & Q&A – 30 minutes)
The inherent investment risks for a storage project can be managed and mitigated to meet the basic structural/technical minimum requirements to be considered bankable. A presentation will outline the mechanisms used to manage project risks, and how they are customized to the risk profile of storage assets. These include contracts, insurance & warranties, codes/standards and other approaches.
Attendees will understand how risk management tools are applied to storage projects and portfolios and their importance in securing financing.
Part 2: Using the Tools to Manage Risk: A Practitioners Panel (panel discussion/case studies – 45 minutes)
Practitioners will cite actual examples of how risk management tools have enhanced the bankability and secured financing for project or portfolios. Panel consisting of 3-4 professionals (financiers, attorneys, etc.) experienced in closing storage deals will discuss how they put deals together and what lessons are learned for future dealmakers
Attendees will hear from people “in the room where it happens” on the risk management arrangements that are necessary to secure deals in the current market.
[15 minute break]
Session IV: Taking it to the Bank: Charging-Up Energy Storage Finance (panel discussion – 45 minutes)
A panel of 3-4 professionals representing developers, EPC/integrators, commercial lenders, transaction attorneys, insurers, or consultants discuss what the future holds for financing energy storage.
Attendees will learn about the expanding opportunities for investing in energy storage and will understand how the trends in finance will affect the pace of future energy storage deployment.
[5 hours total program]