Why These Energy Stocks Have the Potential to Thrive
The global economy is in the midst of a major energy transition toward lower carbon fuels in an effort to combat climate change. Renewable energy sources like wind and solar are a big part of that transition.
However, due to intermittency issues and the need for advancements in battery storage technology, the world will continue to rely on natural gas for years to come. That bodes well for leading natural gas infrastructure companies Kinder Morgan (NYSE: KMI) and Williams (NYSE: WMB).
John Ketchum, the CEO of leading utility and renewable energy developer NextEra Energy (NYSE: NEE), believes natural gas will play an essential role in the energy transition. He discussed its importance at a recent energy industry conference. He noted that the current battery storage technology used on grid applications can only be drawn down at full capacity for about four hours before being largely depleted. These installations can store solar- and wind-generated power for later use at times when those sources aren't producing energy. However, meaningful advancements in cost-effective battery technology will have to be made to turn them into more stable power sources for the grid. And those advancements are at least several years down the road.
Source Fool.com
