Fluence Energy, Inc. is making waves in the energy storage industry, and I think they’re a solid investment opportunity. Here’s why:

First off, the electric grid is going through significant changes due to the rise of solar power. To cope with the challenges posed by solar energy’s intermittent nature, we need storage solutions. That’s where Fluence comes in. They offer grid-scale storage hardware installation, maintenance, and cutting-edge A.I. energy management services.

Fluence was born from a partnership between AES Energy and Siemens, giving them a strong foundation to meet the growing demand for grid storage. They already have an impressive track record with 6.6GW of storage deployed across 47 different markets.

One of the keys to their success lies in their artificial intelligence-based energy management software. This technology allows them to instantaneously manage our complex and dynamic grid, which was previously impossible without AI.

The industry trends support Fluence’s growth prospects. The grid-scale battery market is projected to experience significant growth, and renewable energy is on the rise. With their expertise in battery technology and intelligent management systems, Fluence is well-positioned to capitalize on these trends.

Their financials are looking impressive too. Over the last two years, they have experienced a staggering 611.7% revenue increase, with an average quarterly growth rate of 76.47%. While they are not yet profitable, their guidance suggests they will reach adjusted EBITDA break-even by the end of this year.

There are, of course, some risks involved, such as uncertainty around margin expansion and potential regulatory challenges. They also face competition from other players in the energy management industry.

But looking at the bigger picture, Fluence has a lot going for them. They have a backlog of signed contracts totaling $11.2B, indicating strong demand for their services. As the industry continues to evolve, I believe Fluence’s role will become increasingly important.

The company is making strides in the right direction, and their A.I. capabilities are already outperforming human capabilities in managing the grid. With such promising growth prospects and a market valuation that suggests it’s currently undervalued, I see Fluence as a solid “Buy.”