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Project and Infrastructure Financing

发布时间:2024-05-30

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Project and Infrastructure Financing

Project report (max 4 pages, 12pt, single spaced, excluding appendices)

Students will take on an infrastructure sector mandate and analyze the various trends impacting the sector which can include but not limited to macroeconomic, socio-demographic, political, environmental and industry trends that will form the drivers for the infrastructure mandate. You will have to show an analysis of the investment strategies that forms your recommendation for the selected infrastructure sector mandates. You will also have to discuss the risk factors involved in the mandate and the risk mitigation strategies or instruments that can be employed. You may include recommendations of existing infrastructure fund managers or development platforms that exists currently that is involved in the targeted infrastructure sectors that you have selected for the mandate. You can show both short term and long term strategies depending on your outlook for the sector mandate.

According to the requirements above, your task is to focus on Gravity-Based Long Duration Energy Storage.

Briefing: Long Duration Energy Storage is the technology that enables renewable energy to power our grids and accelerate carbon neutrality. Through long duration energy storage, we can transition towards renewable energy in an affordable, reliable and sustainable way. Wind, solar and other renewables are becoming the lowest cost forms of generation but need storage to match supply with demand. Consumer demand means that peaks in the morning and evening need to be met by extra supply. Today we meet the imbalance in supply and demand by still burning fossil fuels. Now is the time to use flexible long duration energy storage to achieve net carbon neutrality. The world’s electricity grids will need to deploy 8 TW of long duration energy storage by 2040 with a market potential of USD 4 trillion.

The need to ensure an affordable, reliable, clean energy system has been exacerbated by recent challenges in the energy sector, which have increased the prominence of energy security on global agendas. Incorporating LDES can help increase the security of supply and create new use cases for renewable energy. LDES can also unlock new opportunities that are not thoroughly addressed by shorter-duration storage solutions. Examples include: helping increase the share of renewables in the energy mix, providing resilience to unreliable grids at long durations (like at isolated or off-grid locations), enabling cost-efficient 24/7 renewable power purchase agreements (PPAs), or providing stability services to the grid.

https://www.ldescouncil.com/

The four primary types of LDES:

1. Mechanical: Stores potential energy (by tension or position)

2. Thermal: Stores energy as heat

3. Chemical: Stores energy found within chemical bonds

4. Electrochemical (batteries): Stores energy of chemical reactions, where electrical energy is converted to chemical energy and vice versa

Currently, mechanical storage systems are the most common around the world. Aboveground pumped hydropower, for instance, currently accounts for 96% of all utility-scale energy storage in the United States. Gravity-based energy storage is another promising form of mechanical storage, which stores energy by lifting mass that is released when energy is needed.

https://decarbonization.visualcapitalist.com/all-commercially-available-long-duration-energy-storage-technologies-in-one-chart/