Reduced and/or smarter energy use through efficiency technologies and solutions is clearly beneficial. However, ArcTern’s experience is that finding highly scalable investment opportunities in these areas is a challenge. We will continue to explore opportunities to apply emerging information technologies, such as AI, quantum, cheap sensors, and automation, to managing energy efficiently at scale. ArcTern believes that energy storage is the greatest challenge to continued renewable energy growth globally, and the greatest opportunity for growth and disruption. Low-cost energy storage is critical to matching intermittent electricity supply from renewables with demand curves and providing flexibility to ageing electrical grids. ArcTern believes energy storage solutions will vary depending on need (e.g. duration, in-front-of-the-meter vs. behind-the-meter, grid vs microgrid), and there will be a variety of solutions depending on the specific need.
Energy efficiency target technologies and sectors include:
- smart electrical grids;
- breakthrough energy efficiency technologies and materials;
- artificial intelligence/quantum for energy management; and
- smart home technologies.
Energy storage target technologies and sectors include:
- energy storage management solutions;
- microgrid technologies and services;
- lithium-ion improvements; and
- long-duration storage solutions.