Americas Clean Technology: Energy Storage: Assessing the BTM battery storage opportunity for data centers; updating ESS S/D model

Research evidence excerpt

Americas Clean Technology: Energy Storage: Assessing the BTM battery storage opportunity for data centers; updating ESS S/D model

Goldman Sachs Americas Clean Technology: Energy Storage

Exhibit 1: BTM opportunity for battery storage offers Exhibit 2: BTM storage has meaningfully improved the

strong growth potential growth rate for US utility-scale storage

GS forecast for US utility-scale and BTM battery storage Year-over-year growth rates for utility-scale storage (GS

deployments (GWh) forecast)

Utility-Scale BTM DC Prior Current

180 40%

160 35%

140 30%

25%

20%

15%

40 10%

20 5%

0 0%

2026 2027 2028 2029 2030 2026 2027 2028 2029 2030

Source: Goldman Sachs Global Investment Research Source: Goldman Sachs Global Investment Research

Why do batteries matter for the power grid… A battery energy storage system (BESS)

is a technological device that can harness electrical energy in rechargeable batteries to

be dispatched at a later period. There are several traditional uses cases for BESS, and it is

typically used to enable intermittent renewable energy resources such as wind and solar

by storing the energy to be deployed when there is greater demand, commonly referred

to as load shifting. BESS can also be leveraged for arbitrage opportunities (charging

when power prices are low and discharging when they are high), reducing curtailment of

renewable resources, and ancillary services such as frequency balancing, which

leverages BESS capabilities of ramping up and down within milliseconds to manage grid

voltages. BESS is also leveraged for other capabilities such as peaking capacity and

backup power. We note that the majority of demand for BESS is related to being paired

with renewables, as ~50% of the solar in the interconnection queue today is paired with

storage.