Energy Majors are investing massively in Smart Grid and EV Charging Platforms

Energy Majors are investing massively in Smart Grid and EV Charging Platforms
January 25 15:11 2019 Print This Article

Battery Storage, Smart Grid, and Energy Efficiency Companies Bring in $2.8 Billion in VC Funding in 2018 (Mercom)

  • VC funding raised by stationary storage, micro-grids and energy efficiency companies nearly doubled to $2.8bn in 2018 from $1.5bn in 2017.
  • Stationary battery storage companies raised $0.85bn, $0.53bn by micro-grid operators and $1.5 by companies involved in energy efficiency.
  • Charge Point (owned by Siemens) and Sonnen (large residential storage provider in Germany) are the two interesting companies which raised significant VC funding in 2018.

Comments

  • Stationary storage and micro-grid projects are doubling every year albeit from a low base. Analysts expect this growth to only strengthen over the next 5 years.
  • In my view mini utilities (Sonnen, Tesla, SMA Solar) and micro-grid control providers (Siemens, Schneider, ABB, PSI) are likely to benefit from this growth.     

BP invests in PowerShare, one of China’s leading electric vehicle charging platforms (BP press release)

  • BP has invested in a Chinese EV charging hardware and software company PowerShare.
  • Powershare has a cloud based charging software which makes it easier for power suppliers to manage electricity requirements.
  • In related news, Dutch listed charging hardware provider Alfen has won a contract with D’leteren (VW brand importer in Belgium) to supply charging points for its customers in Belgium.

Comments

  • Oil & gas companies, utilities and automotive OEMs are all heavily investing in EV charging infrastructure.
  • This in my view, will result in sharp increase in the demand for charging hardware and software. This explains why BP has chosen  to invest in a leading charging software provider in China – the largest market for EVs.
  • European charging  hardware manufacturer Alfen is well placed to benefit from the growth in EV charging infrastructure.

My view

Oil & Gas Stocks are investing massively in renewables, grid infrastructure especially for EV.

They understand that demand for oil is clearly not growing as expected and that the switch to EVs and other sources of energy is gaining traction.

I am clearly bearish on Oil for Structural reasons. Nevertheless, with the latest developments in Venezuela, WTI and Crude could react positively if Venezuelan president Maduro is overthrown.

As shale production is increasing strongly and demand is stagnating, the long term WTI price is closer to 35$ than 50$ in my opinion.

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Mr. Crypto Lemon
Mr. Crypto Lemon

I am very acidic ! LOVES Financial Markets, Cryptos and having fun !

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