$EOSE A thread on my analysis of NextEra’s Investor Day:

NextEra’s $NEE Investor Day was a masterclass on the energy industry and the base case for the next decade. Anyone interested in this sector, or with investments in any energy company, should listen and analyze every word that came out of here.

This is the biggest utility company in the world. They are the largest: gas, nuclear, renewable and storage operators IN THE WORLD. They’ve built more infrastructure than the next 20 biggest utilities COMBINED. If they speak, you listen.

They clearly stated that the real bottleneck in U.S. power isn’t generation - it’s capacity. And THE ONLY CAPACITY RESOURCE AVAILABLE AT SCALE THORUGH THE END OF THIS DECADE IS: ENERGY STORAGE.

They’re planning 8X more storage than gas through 2032, 53X more than nuclear, and highlighted that extending BESS duration to 8 hours doubles their opportunity set. This is the strongest, most detailed endorsement of grid-scale BESS we’ve ever seen from a major utility.

**

$NEE kicked off their investor day with multiple PRs. Among them:

• A 2.5GW contract with 2 energy-storage agreements with $META.
• An expansion with their $GOOG relationship, building on their 3.5GW in operation or contracted capacity they have in place. Particularly, developing three initial campuses for data-center hubs with a focus on clean energy capacity.

**

Basically, $NEE has become the developer of choice of Hyperscalers data-centers.

Interesting tidbit here. If I was a hyperscaler wanting Eos’ batteries at my datacenters, NextEra is the top developers I am choosing. Nice to see Google and Meta putting the initialpieces together already: **

Lets now delve into Bring Your Own Generation (BYOG). Its very important to notice how $NEE framed this: “And we are working on behind-the-meter solutions that come with front-of-the-meter optionality over time. Our renewables and storage portfolio provides us with a speed-to-market solution to get the initial phase of a data center off the ground and built. We can then follow that up with new gas-fired generation.”

Renewables and storage are NON-OPTIONAL. I expect both Duane Arnold and Basin to have batteries as they wait for their nuclear/gas solutions to be available. Same case with many others. And my belief is that as hyperscalers get comfortable with BESS, they will probably elect to upsize it, instead of switching to more expensive offerings.

**

No margin of error and no time to waste. 500GW of CAPACITY additions is simply unprecedented. Speaking very highly of renewables and storage. Clearly stating these technologies will still be competitive next decade and tamping down expectations for nuclear with a lot of class. The word “potentially” has a lot of signal imo: **

$NEE built more generation than the next 20 largest utilities combined. They are best executors out there, the most forward-thinking and one step ahead. “That’s why we’ve secured a domestic battery supply to meet our expectations through 2029.” Interesting that Eos’ 4GWh LOI with one of the largest utilities in the world [which I am fairly confident was NextEra] was announced in 2023: “Eos also announces an order for a 47 MWh initial renewables plus storage project with one of the largest operators of energy storage in the US, along with a separate long term agreement providing a framework for up to 4 GWh of energy storage volume over the next 6 years (the “Agreement”).”

We know that 47MWh project went to NextEra and that the deal size is oddly similar to their deal with GE Vernova (4GW). Keep in mind, $GEV is a ~$190 billion company... **

Please take a second to read this. Unless they have thousands of battery containers in some random warehouse, or they chose $EOSE as they preferred supplier, I don’t see how they protected for:

Tax credits Tariff exposure Domesticated supply chain to address FEOC Unless their battery supplier is Eos...

Following this, notice the tone. “The opportunity in storage is really hard to overstate.” “Energy storage is the only capacity resource available in scale through the end of the decade.” They have 95GW of storage in inventory, which can translate into 190GW by doubling capacity. I dont know if this was a typo between GW and GWh, but the same units were mentioned multiple times. If they indeed were alluding to GWs, that could be close to 1,000GWh = 1TWh, just in NextEra’s inventory alone...

The bottleneck is no longer generation. Its capacity. And BESS is the only capacity technology available out there. (and imo, not just the only available, but the most competitive one too).

Who is the only BESS company at scale that has been talking about 8-hour duration since inception, and not just in the last ~9 months? Who has developed their product offering since inception from a bottom-up approach to fill this need? $EOSE

**

Storage is the biggest part of the energy market. I dont know how many people really understand this. Roughly double the size than gas. Again, $GEV, which makes gas turbines, which is not the biggest part of the market, is $190billion company...

NextEra plans to put into operation roughly EIGHT TIME MORE STORAGE THAN GAS IN THE NEXT SEVEN YEARS. 8X!! And 53X times more storage than nuclear. 53X!! While $OKLO is still a +$15B company...

$NEE expects to put into operation at least ~32GWs of storage, which translates to at least ~128GWh... (they are talking about 8-hour durations, which would take it to 256GWh...) As mentioned above, “the opportunity is storage is really hard to overstate.”

The next seven years for energy storage will be something crazy to witness.

**

Customers seem willing to spend more on gas generation. But the economics are clear. They are 2X more expensive per gigawatt than renewables+storage. In the long term, economics will dictate the market (although diversification between energy technologies will always be a thing, and makes sense). **

How is NextEra going to keep up with their exceptional past performance? First thing they mention: their 190GW pipeline opportunity in storage. **

Finally, and the cherry on top...Florida is emerging as a key place for data-center development and NextEra couldn’t be better positioned for it. Eos’, as $NEE battery supplier, is too... **

To conclude, NextEra’s Investor Day makes one thing unmistakably clear:

The grid is hitting an inflection point, and energy storage is the centerpiece of the next decade of U.S. infrastructure buildout.

For hyperscalers, utilities, and policymakers, this is no longer theoretical, it’s required.

And as the market pivots toward long-duration, domestic, safe, tariff-proof storage at scale, Eos sits exactly where the world is heading.

The next seven years in energy will be unlike anything we’ve seen. Patience. **

• • •

Missing some Tweet in this thread? You can try to force a refresh