Battery Energy Storage Is Poised For Growth. Let’S Not Miss The Opportunity

Contributed by Brian Hayes, CEO of Key Capture Energy

The progress of the battery energy storage industry feels familiar to those of us who witnessed the rise of the wind sector and other developing technologies during the first decade of the 2000s. The challenges, breakthroughs, and even some of the missteps are strikingly similar. Those of us in leadership roles should embrace some key lessons so the industry can fully realize this exponential growth opportunity and ensure battery energy storage will enable a reliable electrical grid in markets across the country.  

Communities can and often do make or break a project. For developers, the difference between a successful launch and endless delays often hinges on early and proactive communication with local stakeholders. Unlike wind projects, which often involve multiple landowners, battery energy storage facilities usually center on a single parcel of land. While this might limit the number of initial community advocates, it underscores the importance of early and consistent community education and engagement. 

Helping communities understand how batteries stabilize and support the grid can bridge education and misinformation gaps. Batteries have already proven their value in red and blue states like California, where they’ve helped meet surging demand, and Texas, where they’ve kept the lights on during critical times—all while saving consumers money. 

Safety concerns, especially around fire risks, are an important part of the conversation. Developers should be meeting with local authorities and fire officials early and often. Those who address safety concerns head-on, sharing details about the rigorous testing and built-in safety features of today’s technology, can build trust and confidence within a community. It’s about showing—not just telling—that safety is a top priority. 

Developing technologies don’t become efficient and reliable overnight. Early wind technologies faced hurdles including underperformance and reliability issues. What made the difference was collaboration as deployment increased at scale. Developers and operators worked closely with original equipment manufacturers (OEMs), driving innovation that benefited the entire industry. 

Battery energy storage has undergone its own transformation with the shift from older nickel and cobalt technologies to lithium iron phosphate (LFP) systems, but more importantly, rapid deployment over the past four years. Now that several companies are operating at scale, the industry must maintain an honest and open dialogue with our OEM partners to share challenges and push for better solutions. When the entire industry moves forward together, everyone benefits—from individual companies to end-users relying on a stable grid. 

Prior to the mid-2000s, the wind industry had been in an ongoing boom or bust cycle tied to the federal Production Tax Credit (PTC). A commercial inflection point occurred in 2005 when the industry won the trust of the capital markets and rapidly expanded across the country. As technology matured and utilities rapidly embraced it, demand soared, costs dropped, and institutional investors took notice. The result? Lower financing costs and significant growth. 

The battery energy storage industry is poised for a similar breakthrough. Record-setting deployments, increasing numbers of offtake contracts, and growing project queues are all positive signs. To keep the momentum, the industry needs to prioritize contracts that can attract long-term institutional investors. As more capital flows into the industry, financing costs will drop, creating a virtuous cycle of growth and investment. 

By engaging communities with honesty and transparency, driving technological advancements through collaboration, and building trust with investors, the industry can achieve scalable and sustainable growth. The path forward isn’t without challenges, but the industry has a unique opportunity to learn from the past and chart an even more favorable future. The stakes are high, and we must ensure a stable and reliable electrical grid for future generations.  

Brian Hayes is the CEO of Key Capture Energy, joining the company in January of 2024. Prior to KCE, Brian held the position of Executive Vice President of Asset Operations and Transmission at EDP Renewables where he oversaw a team of 500 and over 70 operating assets totaling more than 9,000MW. Brian was instrumental in turning EDPR into a leading developer, owner and operator in the renewables space during his 18-year tenure. 

Brian has been active with various organizations and entities including Black Girls Do Engineer, a member of Texas A&M’s Industrial Engineering Advisory Council, and American Wind Energy Association now American Clean Power Association (ACP). 

Brian holds an MBA from Duke University and B.S. in industrial engineering from Texas A&M. Prior to entering the renewables space, Brian spent 6 years as a management consultant focused on the energy industry at a top-tier firm.