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TotalEnergies (TTE) 61MW Battery Storage Supports Energy Grid

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TotalEnergies SE (TTE - Free Report) announced that it has started operation of the 61-megawatt (MW) battery storage facility, which is the largest in France. This project is part of the long-term tender launched by the French Electricity Transmission Network in February 2020 and is located at the Flandres center in Dunkirk.

The battery storage project consists of 27 containers of 2.5 MWh. The full commissioning of the site follows the start-up of a first 25 MW unit in January 2021.

Importance of Battery Storage Projects

The importance of battery storage projects is steadily increasing across the globe due to their ability to support the electric grid. Electric battery storage provides reliability, enhances the flexibility of the system and integrates production from renewable energy sources to the energy systems.

Per International Energy Agency (IEA), global installed storage capacity is expected to expand 56% in the next five years to reach more than 270 gigawatts (GW) by 2026. IEA expects Utility-scale batteries to account for the majority of storage growth worldwide.

Due to dedicated research and development work as well as technological advances, the cost of installing utility-scale storage projects has been declining over the years, making it easier to carry out accelerated development of these projects across the globe.

Energy Storage Projects in the United States

The battery energy storage projects are being developed across the United States as it supports the goal of the U.S. utilities to achieve zero-emission power production. Per U.S. Energy Information Administration, 14.5 GW of battery storage power capacity is planned to come online in the United States from 2021 to 2024.

In February 2021, TotalEnergies further expanded its presence in the U.S. clean energy generation and storage market by acquiring the development pipeline of 2.2 GW of solar projects and 600 MW of battery storage assets, located in Texas.

U.S. utilities like NextEra Energy (NEE - Free Report) , Eversource Energy (ES - Free Report) and Xcel Energy (XEL - Free Report) , among others, are involved in the development of energy storage projects. NextEra is expected to bring online 4,350-6,300 MW of energy storage projects in the 2021-2024 time frame.  

Eversource is involved in developing innovative battery energy storage projects that will help defer traditional infrastructure investments and store renewable energy for peak hours. Xcel Energy is involved in the development of 275 MW of battery storage projects and expects these storage projects to play a vital role in its goal of attaining net-zero emissions by 2050.

The long-term (three to five years) earnings growth of NextEra, Eversource and Xcel Energy is projected at 8.9%, 6.3%, and 6.4%, respectively. NextEra, Eversource, and Xcel Energy delivered an average surprise of 6.1%, 0.1%, and 0.6%, respectively, in the past four quarters.

Price Performance

In the past 12 months, TotalEnergies’ shares have outperformed the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank

TotalEnergies currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.