Impact investing in clean energy storage: The future of sustainable energy
As the world increasingly embraces renewable energy sources, the adoption of these technologies is marred by a critical limitation: energy storage. The reliability of solar power, for example, cannot be ensured around the clock, primarily because the sun does not shine 24 hours a day. Additionally, even when the sun is out, effective use of energy for more than five hours poses a challenge due to the high costs associated with current storage solutions. This is where the role of impact investing becomes paramount—redirecting financial resources to overcome these storage barriers and create more sustainable and economically viable energy solutions.
One promising area in clean energy storage is sand battery technology, pioneered by companies like Alterno. Supported by Schneider Electric Energy Access Asia (SEEAA), Alterno is revolutionising the way the world stores renewable energy. The company, based in Vietnam, focuses on developing thermal energy storage solutions that reduce carbon emissions from heating in agriculture, industrial processes, and residential homes.
These sand batteries act as a thermal energy reservoir by storing sand heated to high temperatures using off-peak electricity or renewable energy sources, which can be later released as heat energy with minimal energy loss when needed. When directly used as a thermal energy source for drying and heating purposes, Alterno’s sand batteries are significantly cheaper than the traditional lithium-ion batteries with a substantially longer battery lifespan. This cost-effective and efficient storage solution has the potential to resolve one of renewable energy’s biggest challenges—affordable, long-term storage.
“The agricultural sector is at the heart of our mission at Alterno. Our sand battery technology is not just about storing energy—it’s about empowering farmers with reliable and affordable energy solutions that can transform their livelihoods. By enabling year-round access to energy, we’re helping farmers reduce operational costs, increase productivity, and contribute to a more sustainable food system. This impact goes beyond individual farms; it strengthens entire communities by fostering resilience and economic growth in rural areas”, said Hai Ho – Co-founder & CEO of Alterno.
Impact investments are pivotal in combating climate change. Directing capital towards sustainable initiatives not only finances the necessary hardware but also supports climate innovation and influences corporate behavior towards more sustainable practices. By supporting early ventures like Alterno, Schneider Electric Energy Access Asia has the ambition as an impact fund to expedite the adoption of clean energy for a fair energy transition.
Additionally, creating a sustainable future requires the fostering a collaborative environment at the grassroots level that empowers the next generation and promotes local solutions. SEEAA’s impact investment model emphasises the importance of inclusive investments, ensuring that the benefits of clean energy reach all layers of society. The intersection of impact investing and clean energy storage presents a vital opportunity to address one of renewable energy’s most pressing challenges with a solution that contributes to local community resilience and economic growth. By channeling investments into such groundbreaking solutions, we can collectively work towards a more sustainable future and ensure cleaner, more reliable, and affordable energy for generations to come.