The Energy Storage Revolution

Welcome to our latest newsletter focusing on the exciting advancements in energy storage technologies. From grid-scale solutions to innovative portable devices, the field of energy storage is witnessing rapid developments that promise to revolutionize how we generate, store, and utilize energy. In this newsletter, we will explore the importance of energy storage, how it works, current trends, funding news and new innovations in the sector.

The Key to the Puzzle: The Crucial Role of Energy Storage

Enabling Sustainable Energy Transition: Energy storage is key to integrating higher shares of renewable energy into the grid. It supports the transition to a sustainable energy system by providing the necessary flexibility and reliability.

Balancing Supply and Demand: Renewable energy generation is intermittent, meaning it’s not always available when needed. Energy storage systems can store excess energy generated during low demand phases and release it during high demand, ensuring a stable energy supply.

Supporting Remote and Decentralized Energy Systems: In remote or decentralized systems, energy storage provides a reliable backup enhancing local energy resilience. This can help reduce dependency on the central energy grid.

Behind the scenes: How Energy Storage works

Here’s an overview of how various types of energy storage systems function:

Thermal Energy Storage (TES)

TES captures and stores excess thermal energy (heat or cold) in materials like water or molten salts. During the charging phase, the medium absorbs heat from abundant or inexpensive thermal energy sources, such as solar energy or waste heat from industrial processes. This stored thermal energy can then be released during the discharging phase to supply heating or cooling for various uses, including building temperature regulation, industrial processes, and power generation. TES enhances energy efficiency and flexibility by shifting energy use to off-peak times.

Compressed Air Energy Storage (CAES)

CAES stores energy by compressing air in underground caverns or containers. When electricity demand is high, the compressed air is released and expanded through turbines to generate electricity. CAES offers large-scale storage and quick response times but has lower efficiency compared to other technologies.

Battery Energy Storage Systems (BESS)

BESS store electrical energy as chemical energy in battery cells, commonly using lithium-ion batteries. They store excess energy during low demand and release it during high demand or when renewable sources are not producing. BESS support grid stability and renewable energy integration with high efficiency and reliability.

Pumped Hydro Storage

Pumped hydro storage uses two water reservoirs at different elevations. During low demand, water is pumped to the upper reservoir, storing potential energy. During high demand, water flows back to the lower reservoir through turbines, generating electricity. This system is efficient and provides large-scale, long-duration storage.

Flywheel Energy Storage Systems

Flywheels store energy as rotational motion using a spinning rotor. Electrical energy accelerates the flywheel, storing kinetic energy, which can be quickly converted back to electricity when needed. Flywheels offer fast response times and are suitable for applications requiring short bursts of high power.


Supercapacitors store energy through electrostatic charge separation between two electrodes and an electrolyte. They can charge and discharge rapidly, making them ideal for applications like electric vehicles and electronic devices. Supercapacitors offer high power density and long cycle life.

Energizing 2024: A Look at the Thriving Energy Storage Market

Global Energy Storage Market Overview

In 2023, the global energy storage market nearly tripled, achieving the largest year-on-year growth on record. This surge coincided with a significant price drop, particularly in China, where turnkey energy storage system costs fell by 43% to $115 per kilowatt-hour for two-hour storage systems.

Recent and Projected Growth

A record 45 gigawatts (97 gigawatt-hours) of energy storage capacity was added globally last year. This momentum is expected to continue, with over 100 gigawatt-hours of new capacity projected for 2024, driven primarily by growth in China. The US follows, propelled by state targets and favorable market conditions. In Europe, the Middle East, and Africa, demand for residential batteries, especially in Germany and Italy, will drive growth.

Source: BloombergNEF

Long-Term Projections

By 2030, the global energy storage market is forecasted to grow at an annual rate of 21%, reaching 137 gigawatts (442 gigawatt-hours). Solar and wind markets are expected to grow annually by 9% and 7%, respectively. This growth is driven by policies and subsidies, including China’s co-location mandates and the US Inflation Reduction Act, with new support schemes emerging globally.

Technological Shifts

Falling battery costs, especially in China, are crucial for economic deployments. Lithium iron phosphate (LFP) batteries, cheaper and simpler than nickel manganese cobalt (NMC) batteries, are gaining market share due to increased manufacturing capacity by Chinese battery makers. Companies outside China, like LG Energy Solution, Samsung SDI, Panasonic, and Freyr, are also shifting towards LFP production. By 2030, NMC batteries are expected to hold only about 1% market share.

Fueling the Future: Investments and Financing in Energy Storage

Corporate funding in the global energy storage sector in Q1 2024 experienced a remarkable 432% year-on-year increase, reaching $11.7 billion across 29 transactions, compared to $2.2 billion across 27 transactions in Q1 2023, as depicted below.

Source: Mercom Capital Group

Global Venture capital (VC) funding in the sector also saw growth, with a 9% year-on-year increase to $1.2 billion across 23 transactions in Q1 2024. Some of the global energy storage deals are depicted below:

Source: Mercom Capital GroupEU startupsMercom articles

Developments in the Energy Storage Ecosystem in India

Investments by the Adani Group: Indian conglomerate Adani Group will invest USD 5.1 billion in Tamil Nadu, focusing significantly on pumped storage projects. Announced at the Tamil Nadu Global Investors Meet 2024, this includes an investment by Adani Green Energy Ltd in three pumped storage projects in Thenmalai, Alleri, and Aliyar, with a total capacity of 4.9 GW, expected to create over 4,400 jobs.

Solar park in Gujarat: After successfully implementing Battery Energy Storage Systems (BESS) in Modhera, Gujarat plans to establish a larger BESS at Charanka, its first solar park. The Gujarat Power Corporation Limited (GPCL) has begun the bidding process for the project, which will use 20 MWh and 60 MWh battery systems to supply daytime solar power for agriculture, replacing the current practice of providing subsidized electricity to farmers at night.

Ostara Updates

1. April 2024: Our Founder, Vasudha Madhavan was interviewed by CNBC_Awaaz on the emerging climate-tech startups and their ideal fundraising strategy on the sidelines of the Accelerator Demo Day, in Bangkok, Thailand.

Source: CNBC_Awaaz

2. April 2024: Ostara Advisors views on the Indian EV leasing market have been published in The Economics Times dated April 28, 2024.

Source: Economic Times

Breaking Boundaries: Innovations Shaping the Future of Energy Storage

As COP28 emphasizes the need to triple renewable energy, innovative storage solutions beyond lithium-ion batteries are emerging. Here are ten promising technologies making headlines:

Gravity Storage: Uses cranes to lift and release custom-made bricks, storing kinetic energy, similar to hydropower but not limited by geography.

‘No-water’ Hydropower: Uses a dense fluid to turn gentle hills into energy storage sites, expanding potential locations globally.

Compressed Air: Uses excess energy to compress and heat air, storing it in custom-built caverns filled with water. When energy is needed, water pushes the air back up, where it’s reheated to drive a turbine and generate electricity. This system can be built anywhere, solving geographic limitations.

Concrete Batteries: Supercapacitors made from cement and carbon black could turn buildings and roads into energy storage units.

Superheated Bricks: Uses electric heating elements to superheat thousands of tons of bricks. When energy is needed, air flows through the hot bricks and is delivered as superheated air or steam.

Metal Blocks: Shoebox-sized blocks store thermal energy, providing a compact and efficient solution.

Tree Power: Batteries use wood-derived carbon for sustainable energy storage, reducing the carbon footprint.

Iron-flow Batteries: Long-lasting batteries using liquid electrolytes for safe and efficient energy storage.

Iron-air Batteries: Batteries use reversible rusting to store electricity for extended periods.

Nickel-zinc Batteries: Revives an old battery design with new technology, offering a safer, more powerful alternative to lead-acid batteries.

The future of energy storage is bright, with continued advancements and innovations driving the industry forward. From gravity-based systems to novel battery technologies, the possibilities are endless. As we look ahead, it is clear that energy storage will play a pivotal role in enabling a sustainable and resilient energy future.


Global Renewable Energy Storage Market: Growth and Key (

Ten energy storage technologies that want to change the world | Recharge (

Enabling renewable energy with battery energy storage systems | McKinsey

The Importance of Energy Storage in Future Energy Supply (

Understanding How Energy Storage Systems Work | Veolia

Global Energy Storage Market Records Biggest Jump Yet | BloombergNEF (

Energy storage segment: Energy storage segment attracts $9.2 bn funding via venture capital route in 2023: Mercom – The Economic Times (

Corporate Funding in Energy Storage Sector Surges Five-Fold to $11.7 Billion in Q1 (

Adani Group to invest in pumped storage projects in Tamil Nadu (


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Mukund Ranganathan


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Mukund Ranganathan


Mukund is a seasoned investment banker with 27 years of experience in advising companies on M&A and capital raising transactions. He has served most recently as Joint Managing Director at Motilal Oswal Investment Banking, where he worked from June 2014 to January 2021. During his career, he has facilitated over 70 strategic financial transactions including Motherson Sumi’s acquisition of PKC Group (Finland), sale of Aurangabad Electricals to Mahindra CIE, Siemens’ sale of Bangalore Airport, sale of Spicejet, Aegis’ acquisition of PeopleSupport (USA), sale of Air Deccan among others. Mukund has extensive experience in raising private equity funding as well as in the capital markets including IPOs, follow-on offerings, GDRs and ADRs for L&T Finance, Indostar, Dixon Technologies, Bharat Financial Inclusion, Tata Consultancy Services (TCS), Wipro, GAIL, etc.

Mukund has earlier worked for 9 years at Edelweiss Financial Services and started his career in 1996 with a 9-year stint at Morgan Stanley. Mr. Ranganathan holds a B.Tech degree in Electrical Engineering from Indian Institute of Technology Madras (1994) and a PGDM from Indian Institute of Management, Ahmedabad (1996).

Vasudha Madhavan

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Vasudha Madhavan

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Vasudha is the founder of Ostara Advisors (formerly Dhruva Advisors) and is one of the first investment bankers in India to specialise in Electric Mobility, having advised clients in this space since 2017. She made her all-India M&A League Table debut in the top 20 in October 2018.

In 2023, Vasudha was felicitated by India Energy Storage Alliance (IESA) as one of the “Women leaders driving energy sector in India” 

Vasudha has over 21 years of experience in Corporate & Investment Banking; with leading organizations like Citibank and ICICI Bank, as well as in boutique investment banking, based in Mumbai and Bangalore. Vasudha is responsible for having set up and expanded the ‘Private Equity & Hedge Fund’ coverage vertical for Citibank, India. She has also been part of Citibank’s Risk Management team for mid-size corporates, managing the bank’s lending decisions to a portfolio of companies in ITES, auto components, facilities management services, logistics, diversified manufacturing etc.

Vasudha is also a mentor at Aspire for Her, a unique organisation that enables women to join and stay in the workforce, through campus engagement, mentorships and skilling workshops. Their vision is to impact 1 million+ women and add $5B to India’s GDP through increased participation of women in the workforce by 2025.

Vasudha earned her MBA in Finance from XLRI, Jamshedpur, India and her Bachelor’s degree in Commerce from Mount Carmel College, Bangalore, India. She is also a certified Advanced Scuba Diver and enjoys photography, having held several solo and group exhibitions of her work.

R. 'Shanx' Ravisankar

Industry Expert – Financial Technology and Cloud Solutions

Shanx is a founding member and former CEO of Oracle Financial Services Software, (formerly known as i-flex Solutions, the company was acquired by Oracle in 2006). Shanx retired in 2011 as the Chief Operating Officer, Oracle Financial Services Global Business Unit (FSGBU). As a technology leader, he has also been profiled in leading trade and industry publications. In 2008, Shanx was selected as one of the 50 Outstanding Asian American business leaders. This accolade celebrates Asian business leaders and recognizes their pivotal roles in Corporate America. Shanx is an engineering graduate from the Indian Institute of Technology, Chennai, and has an MBA in Management from the Indian Institute of Management, Ahmedabad, India.
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