Brookfield Asset Management expects contracts combining clean energy generation with battery storage to increasingly replace standalone solar and wind deals, as corporate power buyers seek more reliable supply and protection against price volatility, according to a report by Bloomberg.
Arnaud Jouvin, who leads Brookfield’s global energy storage strategy, said the value of renewable power generated during the middle of the day is falling in some markets, making standalone solar less attractive for large offtakers. Battery storage allows lower-value energy to be shifted to periods of higher demand and higher prices.
Brookfield, which manages more than $1tn in assets, is increasing its focus on battery technology as part of its energy transition strategy. The firm and its portfolio companies have already signed three hybrid power purchase agreements, including deals involving Neoen and BHP in Australia, X-ELIO and Amazon, and a Brookfield-backed company in India delivering round-the-clock renewable power.
The firm has a development pipeline of more than 200GW across solar, wind, hydro and storage. Its renewables arm has also built a global storage portfolio of around 3.1GW of installed capacity, with a development pipeline of almost 55GW.
