Pratt, Simon

BESS (Batteries Energy Storage Systems) and how to play this trend in the equity market! ⚡ ⚡ ⚡ BESS should be the best way out to provide flexibility and power availability in a global scenario in which intermittent sources (solar and wind) are gaining share and power demand will skyrocket to meet AI, electrification, and cooling/heating needs. Data from BloombergNEF, IEA, and Ember Energy reveal that BESS is probably the fastest growing energy infrastructure market in the world. In just 12 years, global capacity is expected to go from ~240 GW in 2025 to ~2 TW in 2035 — a growth that could require investments of US$600-750 billion. In Brazil, installed capacity is currently less than 1 GW and EPE estimates that it could reach 7 GW by 2035, requiring approximately R$50 billion in investments. How to play this trend? The market is currently dominated by Chinese and U.S. players such as CATL, BYD, Sungrow, EVE Energy, Tesla, Fluence Energy, and Microvast. There are also European players, such as Wartsila and Siemens, focused on BESS systems integration. In Brazil, WEG is the main highlight. In the EFT world, there are vehicles focused on battery technologies: Global X Lithium & Battery Tech ETF — LIT, WisdomTree Battery Solutions UCITS ETF — VOLT, and L&G Battery Value-Chain ETF — BATT.

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A highlight of the BNEF Summit in San Francisco this week for me was the presentation on “Climate Adaptation as an Economic Shock Absorber” by Danya Liu, CFA from Bloomberg, who described how weather events are becoming more frequent and costly, and opportunities where adaptation can be a catalyst to limit their economic impact. Her presentation was followed by a panel on “Water Scarcity and Business Resilience”, which provided insight on how water scarcity is emerging as a critical risk for business operations. The panel featured Colin le Duc, Generation Investment Management; Emily Morris, Emrgy Inc.; Mike Myatt, Environmental Defense Fund; and was moderated by Melanie Rua, MBA, Bloomberg. Not only is California's agriculture sector facing intensifying water stress, but also the tech sector, which has many of the largest companies headquartered in CA, is being hurt by growing risks to water supply for data centers and semiconductor manufacturing. Leaders from utilities, technology, and agriculture discussed how businesses are assessing their exposure to water risks, the frameworks that are shaping their strategies, and the tools they are using to adapt to the current circumstances. Key Takeaways: · Climate-related weather events had an economic cost of $1.3 trillion in 2024 · Increasingly erratic weather is causing companies and governments to think about ways to strengthen critical infrastructure, enhance natural barriers, and diversify supply chains · Insurance companies are pricing in climate risk, which is clear from insurance data from different communities throughout the U.S., with the result that some of the fastest growing U.S. communities are in areas with the lowest climate risk · 31% of global GDP is created in areas under increasing water stress. Governments will need to fund $7 trillion for global water infrastructure   · Agriculture accounts for 70% of water use in the U.S., but over 85% in other parts of the world · Water is an underinvested area, with few dedicated water funds. The sector receives less than 1% of total investment and roughly 5% of all CleanTech funding · Almost 20% of California energy is used for water, including ~12% for water pumping and treating, and ~7% for water conveyance throughout the state · California is losing over 4-million-acre feet of water annually. Some districts are losing ~20% of water due to seepage and evaporation. Infrastructure, for both water treatment and conveyance, needs to be urgently updated for resiliency · Although desalination is option for California, it is costly and not environmentally sustainable, making it unlikely to be an option for areas far from the coast #adaptation; #climate; #water; #watertech BloombergNEF EcoTech Capital Cy Obert Jeffrey Lipton Albert Cheung Demian Flowers Jon Baker Paul Benjamin   https://lnkd.in/gVtrGfaQ

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#US-based global alternative asset manager Apollo Global Management, Inc.-managed funds, affiliates, and other long-term investors have purchased $500 million (~₹45.96 billion) in investment-grade-rated senior secured private placement notes from ATSOL Global, a subsidiary of Adani Transmission Step-One under Adani Energy Solutions Ltd. https://lnkd.in/gWP8GCWW

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