Energy storage has been highlighted as a key growth area for cleantech investors.

Analysts at Frost & Sullivan said that the long-term outlook for the clean energy market is positive, despite the beginning of this year being “marred by waves of bad news of bankruptcies, profit warnings and staff layoffs”.

Renewable energy programme manager Alina Bakhareva said: “We witnessed important solar manufactures going bankrupt, tariffs cuts being accelerated, even retroactive cuts in feed-in tariffs for already operating PV projects. This situation affected investors’ confidence.”

But Frost & Sullivan believes that energy storage offers solid investment opportunities.

Energy storage seems ready to move away from the dominance of pump-storage facilities,” it stated. “Batteries, molten salt for CSP projects, and creative distributed storage applications on the customer side of the meter are being tried and tested in strengthening the grid.”

The company also advised investors to “continue to consider new geographies as part of their strategy”.

“A larger number of countries is introducing targets and goals and enacting support mechanisms for green energy and energy efficiency. China, India and Brazil – followed by other counties in Asia, Latin America, and Africa – will all see more projects.