Battery Storage is Just Getting Started: Takeaways from Our Recent Talk at the Energy Storage Summit

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Apr 03 2025  |  5 min read

We just got back from the Energy Storage Summit USA in Dallas, and we’re still buzzing from “The Future of Grid-Scale Portfolios: Battery Economics, Political Updates and the Power Market,” an illuminating session moderated by Hodgson Russ’ leader of cleantech and European-U.S. practices Daniel Spitzer, featuring Lori Cobos, Tyba co-founder Tom Thunell, Spearmint Energy Chief Development Officer Peter Rood, esVolta CEO Randolph Mann and our very own Head of Structuring, Dr. Yinghuang Ji. There’s a lot to unpack, so let’s dive in!

 

 

The numbers don’t lie…

While the US grid added a whopping 50 GW of solar in 2024, we only added 10 GW of battery storage. As Yinghuang put it, we’re just scratching the surface of what’s possible in the storage space.

One thing that really caught our attention was her take on high-solar markets like CAISO. Solar’s become “a victim of its own success” – negative midday pricing showed up two months early this year! The grid’s swimming in excess solar energy during the day, which means batteries are desperately needed to soak up that power and release it when it actually matters.

With electricity demand skyrocketing at levels we haven’t seen in decades, Yinghuang nailed it when she said, “the grid not just needs more megawatt-hours, but more importantly, needs megawatts to show up in the right hours.”

 

Let’s keep it real though…

The panelists didn’t sugarcoat the challenges, however. Right now, only CAISO and ERCOT really have the suitable economic environment for 4-hour and 2-hour battery systems. You see, there’s more work to be done in other markets that don’t yet have enough solar or the necessary capacity structures.

Even ERCOT (known for its volatility) saw BESS revenue decline 75% in 2024, compared to the prior year. With 10+ GW of batteries already operating there, the ancillary services market is getting crowded fast.

We’re taking these insights to heart at MN8. Success in this space isn’t about wishful thinking – it’s about market discipline, keeping costs in check, and nailing operations and bidding strategies.

 

 

The AI boom = game changer

The most exciting part of Yinghuang’s talk? How AI and data centers are reshaping everything. These customers want speed, reliability, and scale – and they want it yesterday.

While we don’t have perfect 24/7 carbon-free solutions yet, Yinghuang highlighted where creative BESS applications are making headway: pairing gas peakers with batteries to use existing interconnection, and helping large customers boost reliability with on-site energy storage.

Yinghuang’s point that “not all MWhs are created equal” really hit home. Being able to deliver power exactly when it’s needed is the whole ballgame, and batteries are the MVPs in that scenario.

 

So, what’s next?

Despite the hurdles, the panel’s outlook was crystal clear: massive demand and serious growth potential. As battery costs keep falling, markets that don’t pencil today will open up tomorrow.

At MN8 Energy, we couldn’t be prouder to have visionaries like Yinghuang steering our strategy. We’re rolling up our sleeves and building the storage solutions that will power a more resilient, reliable grid for everyone.

Big thanks to the Energy Storage Summit for hosting these crucial conversations, and especially our moderator, Daniel Spitzer. We’re all in this together, and we can’t wait to keep pushing the boundaries of what’s possible!

Ready to join the storage revolution? Reach out to us at [email protected] – we’d love to connect.