Bilotta has been a regular contributor to the site, discussing the company’s choice of the smaller, distributed-scale BESS segment as well as evolving dynamics in the US project M&A market, for respective Energy-Storage.news Premium articles. The firm raised US$100 million in debt financing from Nomura for its pipeline last year.
Energy-Storage.news: What did 2024 mean for the energy storage industry from your company’s perspective and the bigger picture?
Barrett Bilotta: Both lithium-ion batteries and energy storage system costs declined in 2024 relative to 2023. As a result of this cost reduction, the energy storage industry continued its rapid growth in 2024. Use cases also evolved to deliver greater energy capacity and more optionality to electric grid operators. As a sophisticated operator of energy storage systems, that is a trend that served Agilitas Energy well.
What do you think 2025 will hold, firstly in terms of things to look forward to, but also in terms of challenges ahead?
We expect the energy storage industry’s growth rate to exceed 2024 levels. We anticipate the development of more state-sponsored programs to encourage energy storage installation. We also expect wholesale market rules to evolve to capture the flexibility of storage systems to manage day-to-day load fluctuations and transmission and distribution constraints. The industry will continue to face challenges with interconnection timelines.
The last year has seen incredible growth in energy storage deployments in key markets worldwide, but what are some things that people may not be aware of when considering the development of mature and emerging markets?
The development of energy storage facilities is complex and time-consuming. Permitting processes often involve long lead times, as do system impact studies and interconnection agreements. A storage facility can be constructed in a matter of months, but the time to get shovel-ready can take years.
Are there any major market trends that our readers should watch, perhaps related to technology, financing, or other aspects of the industry?
There is a growing trend toward longer-duration energy storage as market needs evolve. Traditionally, energy storage systems have had two-hour durations or less. However, load growth is expected in most regions of the country and that will mean a greater demand for longer-term energy facilities. We also anticipate a move away from lithium-ion batteries, both as a result of a need for longer-term storage but also because the industry needs chemistries with greater stability, density, and shelf life.
What should the industry’s priorities be in 2025 and beyond?
The industry should focus on prioritising collaboration between regulators, legislators, utilities, grid operators, and developers to ensure that barriers to entry and rapid deployment are addressed.
Energy storage is a unique asset that can rapidly respond to changing market conditions. It is able to help operators balance the grid on a moment-by-moment basis and can serve to store renewable energy for deployment during peak hours; thereby avoiding the use of high-emission fossil-fuel-fired peaking facilities.
In addition, expanded energy storage deployment can maximize the use of excess renewable energy, such as mid-day solar production, by storing it for deployment at a later time.
