Grenergy , a Spain-listed renewable energy company, is a promising investment opportunity in the rapidly expanding energy storage sector, according to Bank of America. The Wall Street bank said it believes the company’s focus on utility-scale battery projects will see it benefit from the growing demand for grid-scale energy storage, a trend underscored by Tesla ‘s recent strong performance in this market. Reading across from Tesla Tesla’s energy generation and storage revenues — which includes sales of the Megapack — rose a remarkable 99.7% year over year in the second quarter of 2024, while storage deployment surged by 154% from the same period last year. Those figures represent a significant acceleration from the first quarter’s more modest growth rates of 6.9% and 4.2%, respectively. In fact, Tesla’s chief executive, Elon Musk, has said that “people are underestimating this demand by probably orders [of] magnitude.” “I think people don’t understand just how much demand there will be for Energy Storage,” Musk told analysts after the electric vehicle maker reported its second-quarter results on July 24. Grenergy The Wall Street bank said in a note to clients on Aug. 9 that Grenergy, which is building the largest battery project in the world, is a “rare” pure play on this theme. Its analysts expect the little-known stock to rise by 52% over the next 12 months to 52 euros ($58) a share. The stock is also traded on German stock exchanges. GRE-ES 1Y line The company, founded in 2007 and listed since 2015, is building the biggest solar power plant with 1 gigawatt capacity in Atacama, Chile, alongside its 4.1 gigawatt-hour mega battery project. The company also acquired a U.S. renewables developer in 2023 and has a pipeline of projects in Spain, Italy, Poland and Germany. Though there are inherent risks with investing in small-cap companies executing large projects, Bank of America analysts believe Grenergy has sufficient history and track record to justify a bet on the stock. “Grenergy is drastically changing scope with Oasis Atacama, but has enough track record in Chile and revenues are largely secured, underpinning returns all the while with battery costs falling,” said BofA analysts led by Alexandre Roncier. “We like batteries … and beyond Chile we believe Grenergy can expand successfully into the US, as well as pursue hybridisation in its domestic Spanish market.” The company also announced ambitious targets, including reaching 5 gigawatts of solar photovoltaic capacity and 4 gigawatt-hours of storage installed capacity by 2026. In the United States, the company expects demand for renewable and battery energy to be driven by artificial intelligence and data centers. “That’s creating an unbelievable new source of demand. We all were expecting tailwinds like electric vehicle [and] hydrogen [instead],” executive chairman David Ruiz de Andrés said earlier this year.
