GAZB - Natural Gas Will Gain From Energy Storage Constraint
Investment Thesis
Economics and increasingly aggressive Renewable Portfolio Standard (RPS) laws will retire significant coal and nuclear generating capacity, now meeting 44% of the demand for electric power, increasing reliance on intermittent solar and wind capacity.
Solar and wind market share will be limited by a lack of utility scale storage capacity required to keep the lights on; e.g. implementing California's 100% renewables goal for the U.S. would require thousands of GWhs of storage.
Natural gas is the most likely beneficiary, as coal and nuclear are preferentially retired. Increased use of natural gas for power