The future of energy depends on our ability to store it.
If 2021 was the “inflection point” for the energy storage sector, 2022 was the regulatory supercharge that we urgently needed to help reach the Paris Agreement goals of limiting global warming to below two degrees Celsius compared to pre-industrial levels.
The $369 billion Inflation Reduction Act (IRA), which was signed into law in August of 2022, is the largest and most ambitious investment in climate action that the United States has ever made—and delivers a sea change for the energy storage sector.
Tax incentives and declining costs have propelled renewable energy development for over a decade, taking wind and solar from novel technologies to some of the fastest-growing sources of new electricity in the nation’s power grid. The foundation of energy storage’s meteoric rise is attributed in part to its eligibility for current tax credits when charged by a solar array, prompting the industry to develop solar-paired storage projects.
With the passage of the IRA, energy storage is finally incentivized on its own. Before the IRA, energy storage made sense in locations where power is more expensive, including New York, California, and New England. The IRA makes sustainable power cheaper everywhere in the United States and, not only that, it creates the regulatory certainty that’s needed for the private sector to invest more heavily in the clean energy transition.
Convergent Energy and Power (Convergent), a leading developer of energy storage solutions in North America, has been in the energy storage industry since its infancy, more than a decade ago. Throughout that time, we’ve gained expertise, working closely with businesses and utilities to take the hassle out of energy storage by building, owning, and operating systems on their behalf.
It seems as if every successive year becomes the most exciting time to be in the energy storage sector—and here at Convergent—and this year is no different. With ongoing support from our ownership group Energy Capital Partners (ECP), Convergent continues to capitalize on the growing enthusiasm for both energy storage and the clean energy transition. As of December 2022, we have invested or committed over $500M to projects in operation or under development across North America.
In our second annual Sustainability and Impact Report, we share more about how we integrate Environmental, Social, and Governance (ESG) performance into our overall success metrics. We share the ways in which we consider our impact on people (our team, customers, partners, vendors, and the communities we are part of) and on the planet. Additionally, we share our commitment to continuous improvement and some of the ways that we can do more, and do better, in the year ahead.
There has never been a more critical or opportune time to be an ESG-led business committed to accelerating the clean energy transition through AI-powered energy storage and Convergent is optimally positioned to meet this moment.
Measuring Our Clean Energy Impact – A First Step
Below are some ways in which we measure our environmental impact across our portfolio, which helps us see where we are providing value to the communities where we operate and the grid at large.
Growing in the Right Direction: Plans for 2023 and Beyond
Our mission is to build an energy landscape that is less expensive, more reliable, and increasingly sustainable—one that benefits our employees, customers, communities, and planet. We remain dedicated to all of our stakeholders and bullish on our ability to accelerate the clean energy transition as we begin 2023.
Again, this is the first year in history with a federal investment tax credit (ITC) for what is known as “standalone” energy storage. The ITC covers 30% of the size of the investment and can increase beyond 30% with various bonuses, including those tied to developing projects in low-income communities or using US-made products. It will be a landmark year for the future of energy and for us at Convergent.
As we continue solving energy challenges for our customers, we will also focus on continuous improvement within our company. Here at Convergent, we understand that our commitment to the clean energy transition and the pursuit of Environmental, Social, and Governance performance is a journey.
To us, continuous improvement is not just an action—it is a mentality that we strive to embed throughout the company. In 2022, we chose to further align our brand with ESG by operationalizing our DEI Roadmap, developing a community engagement pilot program, and delivering more benefits and training to employees.
Accelerate the Clean Energy Transition With Convergent
Climate change poses the greatest threat of our time and we are working to mitigate the catastrophic impact of a warming planet on current and future generations. 2023 is “go time” for energy storage developers, especially those of us with the expertise and track record of results.
If you’re looking to reduce your carbon footprint and embrace critical ESG principles, Convergent can help. We’re accelerating the clean energy transition through AI-powered energy storage … and we’re ready to partner with your organization.
If you’re interested in learning more about how energy storage can benefit your business, utility, or community, please contact us today for a free, customized evaluation.