| | APRIL 202419more difficult for the fossil-fired generation to compete on a merit-order basis. A virtuous cycle for renewables puts further pressure on older fossil plants to retire.Meanwhile, electric vehicles (E.V.s) are becoming more popular in the U.S. As the supply of E.V.s ramps up to meet demand, the relative cost of these vehicles compared to traditional combustion engine cars continues to improve, aided by the decreasing cost of E.V. batteries. It is predicted that by 2025 E.V.'s will cost less than combustion engine vehicles. In addition, the future price of batteries for cars and other uses is forecasted to decrease. Corporate/ESG MandatesSupporting renewable generation has been widely adopted by many leading U.S. technology companies, with some pledging to have all of their energy needs supplied by renewable resources. For example, Google, Apple, and Facebook are early adopters in this "green" movement and have announced that 100% of their energy needs are met with renewable power purchase agreements. Meanwhile, in response to investor needs, several leading infrastructure investment firms require investments to meet or exceed certain environmental, social and governance (ESG) requirements. Notably, Blackrock, one of the world's largest infrastructure investors, made news in 2020 when it said it would no longer support new coal-fired investments in its portfolio. Best with BESSWhile renewable generation often offers lower costs and desirable environmental attributes, its output is inherently variable, thus creating challenges for grid operators who have to balance electrical generation supply with demand continuously. To provide dependable electrical supply, battery energy storage systems (BESS) capture low-cost energy and discharge it during higher-demand (higher-price) periods when renewable energy supply is otherwise reduced. These BESS modular systems can be quickly designed, configured and constructed utilizing excess space adjacent to or replacing existing fossil-fuel electrical generators. Location, Location, LocationLarger, utility-scale renewable projects are typically located where land is plentiful and often have to rely on ever more constrained electric transmission systems to deliver energy to demand centers. However, existing fossil fuel plants are likely to enjoy electrical interconnections that could be preserved, allowing the new BESS at "old" plants to deliver electricity while maintaining their existing point of interconnection. By preserving their spot in the electrical interconnection queue, existing generating resources can take advantage of reduced transmission-related charges and shorten the amount of time needed to deliver power to the grid. Everything Old Is New AgainRenewable generation is projected to be the dominant form of new electric generation resources. BESS systems installed at existing fossil sites provide a responsive, cost-effective solution that supports ESG goals while enhancing grid reliability. Supporting renewable generation has been widely adopted by many leading U.S. technology companies, with some pledging to have all of their energy needs supplied by renewable resources
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