AC vs DC-Coupled BESS: The Pros and Cons

AC or DC coupling refers to the way in which solar panels are linked to the BESS (battery energy storage systems). Here we compare the pros and cons of each.

Solar panels can be coupled or linked to a battery either through alternating current (AC) coupling or direct current (DC) coupling. AC current flows rapidly on electricity grids both forward and backward. DC current on the other hand, flows only in one direction.

DC current is what is generated by solar panels and stored by batteries, but because appliances use AC current (just look at the AC circuit board you have in your home), the current must be converted via inverters.

In the past, AC-coupled BESSs were most often used with residential and commercial solar installations, and DC-coupled systems were used for remote and off-grid installations, but more options for DC-coupled systems have become available. Equipment manufacturers are developing streamlined and standardized power electronics equipment for DC-coupled BESSs.

Over the past decade, inverter technology has advanced and resulted in the development of new AC-coupled and DC-coupled systems. Let’s find out more.

  1. What Are AC-Coupled Systems?
  2. What Are DC-Coupled Systems?
  3. What Are the Advantages of AC-Coupled Battery Systems?
  4. What Are the Disadvantages of AC-Coupled Battery Systems?
  5. What Are the Advantages of DC-Coupled System?
  6. What Are the Disadvantages of DC-Coupled System?
  7. Should I Use an AC- or DC-Coupled System for My Solar Plant?
  8. RatedPower’s Platform Ensures the Efficiency of Your Plant

What Are AC-Coupled Systems

In AC-coupled systems, there are separate inverters for the solar panels and the battery. Both the solar panels and the battery module can be discharged at full power and they can either be dispatched together or independently, creating flexibility in how the system operates. The solar panels and battery can either share an interconnection to the grid or run on separate interconnections.

AC-coupled battery energy storage system diagram. Source: RatedPower

AC BESSs comprise of a lithium-ion battery module, inverters/chargers, and a battery management system (BMS). These compact units are easy to install and are a popular choice for upgrading energy systems, and the systems are used for grid-connected sites as the inverters tend not to be powerful enough to run off-grid.

It’s worth noting that because both the solar panel and the battery are DC-current compatible, the current will need to be converted three times in an AC-coupled system.

What Are DC-Coupled Systems?

DC-coupled systems typically use solar-charge controllers, or regulators to charge the battery from the solar panels, along with a battery inverter to convert the electricity flow to AC.

DC-coupled battery energy storage system. Source: RatedPower

The solar panels and battery module use the same inverter and share the grid interconnection, reducing the cost of equipment. This also reduces power losses from inverting the current and running separate interconnection lines to the grid, as the solar array and battery are dispatched as a single facility. But this offers less flexibility than an AC system.

What Are the Advantages of AC-Coupled Battery Systems?

There are several benefits to using an AC-coupled BESS for your solar plant, including:

  • Retrofitting: AC-coupled batteries are easy to install on an existing solar panel system and more can be added to expand capacity.
  • Flexibility: Installers are not restricted in where the
    inverters and batteries can be located. AC coupling works with any type of inverter.
  • Resiliency: The flexibility to install multiple inverters and batteries in different locations helps minimize the risk of an outage if an inverter fails. Having multiple inverters provides more combined power and battery faults do not have an impact on power generation.
  • Versatility: AC-coupled systems enable batteries to charge from the grid as well as the solar panels, so if the solar panels are not generating enough electricity, the battery can still charge from the grid.

What Are the Disadvantages of AC-Coupled Battery Systems?

  • Cost: AC-coupled systems cost more than DC-coupled systems as they use multiple inverters.
  • Lower efficiency: The stored energy is converted three times; from the DC current to AC current to supply the building, and then back to DC current to the battery, and again back into AC. Each conversion results in a small amount of energy loss.
  • Supply limitations: AC BESSs are not designed to be used off-grid and as they are transformerless, they cannot manage the surge loads from multiple appliances.

What Are the Advantages of a DC-Coupled System?

Where AC-coupled systems suffer in terms of efficiency and cost, DC-coupled systems have the advantage:

  • Affordability: DC-coupled systems tend to be cheaper than AC-coupled systems, as the solar panels and battery use a single inverter and less extra equipment such as voltage transformers and switchgear.
  • Higher efficiency: Unlike AC systems which convert the current multiple times, DC BESSs only convert the current once, reducing energy losses and making them more efficient.
  • Oversizing: DC-coupled systems allow solar panels to generate more electricity than the inverter rating. The excess energy can be used to charge the battery, an EV charger or a water heating system, whereas in an AC-coupled system, the energy is lost.

What Are the Disadvantages of a DC-Coupled System?

  • Limited flexibility: Installers have less flexibility than with an AC system, as the inverter needs to be located close to the battery.
  • Less resiliency: With a single inverter in a DC-coupled system, if the inverter fails, the solar power as well as the battery capacity is lost.

Should I use an AC- or DC-Coupled System for My Solar Plant?

AC-coupled systems are the preferred option for larger and utility-scale plants. That’s because while AC-coupled systems are slightly less efficient at charging batteries (90-94% vs. 98% achieved by DC-coupled), they are far easier to install, especially into an existing system.

That said, whether AC-coupled or DC-coupled is the best solution for your PV plant design will be project specific. You can use a PV plant software solution to run several simulations and identify the best option.

Simplify Battery Energy Storage System Designs

With RatedPower’s BESS design tool, you can seamlessly integrate battery storage with PV plants, supporting both AC- and DC-coupled configurations. Quickly optimize storage capacity, generate full engineering documents, and compare AC vs. DC hybrid PV systems for cost and production efficiency. Automate your BESS layout generation, container placement, and power factor adjustments while leveraging a comprehensive equipment library. You can also design standalone BESS projects with refined calculations for topography, earthworks, and cable sizing.

Take a product tour today and learn how Enverus RatedPower can revolutionize your BESS design.

Enverus Intelligence® Research - Demand, tariffs and production economics will drive reshoring revival Demand, tariffs and production economics will drive reshoring revival

Demand, tariffs and production economics will drive reshoring revival

CALGARY, Alberta (March 12, 2025) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing a report that examines the impact of manufacturing load resulting from increased domestic manufacturing driven by demand, tariffs and production economics. The report also explores regional load growth variations influenced by infrastructure and adoption trends, the impact of recent legislation and tax credits on manufacturing and the comparative economics of imports versus domestic production.

“Domestic manufacturing of clean energy materials is expected to rise because of tariffs and the desire to reduce reliance on the international supply chain. However, we find the value of Inflation Reduction Act (IRA) manufacturing credits remains unmatched,” said Kevin Kang, senior analyst at EIR.

“The reshoring of manufacturing is expected to account for less than 2% of the overall load across the U.S. The Southeast will see most of this growth due to existing manufacturing infrastructure, while other regions like ERCOT will be mostly unaffected,” Kang said.

“Historically, semiconductors have been primarily imported from Taiwan, but we expect to see a growing level of domestic production through to 2050 as demand for AI and data center infrastructure grows. The CHIPS and Science Act is creating an equal playing field in terms of production costs,” Kang said.

Key takeaways from the report series:

  • Tariffs on clean energy equipment can boost U.S. manufacturing but won’t replace the value of IRA credits. Using domestic products in renewable projects adds investment tax credit benefits.
  • Manufacturing activity will rise through 2050 as domestic production grows, but solar output may decline after 2030 because of tax credit expiration.
  • Increased manufacturing will add more than 12 GW of annual load to the L48. The Southeast will be impacted by solar reshoring, while ERCOT and eastern PJM will remain largely unaffected.
  • EIR finds IRA credits and tariffs make domestic battery manufacturing 54% cheaper than imports while achieving cost parity for chip production. However, domestic wind blade and solar module manufacturing remain 113% and 12% more expensive than imports, respectively.

EIR’s analysis pulls from a variety of Enverus products including Enverus Foundations® | Power & Renewables.

You must be an Enverus Intelligence® subscriber to access this report.

EIR research reports cannot be distributed without a scheduled interview. If you have questions or you are interested in obtaining a copy of this report, please use our Request Media Interview option on the Enverus Newsroom page to schedule an interview with one of our expert analysts.

About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

Enverus/RatedPower Press Release - RatedPower publishes 2025 Global Renewable Trends Report examining the green landscape

The importance of solar Irradiance and Meteorological data for PV design

Solar irradiance, the power of solar radiation measured in W/m2 — is an essential metric when designing a PV system.

One of the most important factors to consider when designing a solar photovoltaic (PV) system is the level of solar irradiance at a potential location.

In this guide, we examine solar irradiance, how it is calculated, and how you can use RatedPower software to simulate and evaluate solar irradiance for your utility-scale PV projects.

  1. What Is Solar Irradiance?
  2. What Influences Solar Irradiance?
  3. How Is Irradiance Measured?
  4. How Does RatedPower Account for Solar Irradiance?
  5. Use RatedPower to Optimize Your PV Project Design

What Is Solar Irradiance?

Solar irradiance is the output of light energy from the sun that reaches the earth. It is measured in terms of the amount of sunlight that hits a square meter of a surface in one second.

The terms irradiance, irradiation and radiation are often used interchangeably. However, it can be said that radiation is the number of photons that are emitted by a single source, while irradiation refers to the radiation falling on a surface. Irradiation is the process by which solar panels are exposed to radiation and moving particles (sun-emitted photons), leading to the process of ionization.

The units of measurement are key to understanding the difference:

  • Irradiance is the power of solar radiation per unit area, measured in W/m2.
  • Solar irradiation is the quantity that measures the energy per unit area of incident solar radiation on a surface — the power received in a given time, measured in Wh/m2.

So, while irradiance measures the power per area, solar irradiation measures the power per area during a period of time (an hour, for example).

The amount of solar irradiance depends on several factors.

What Influences Solar Irradiance?

Geographic location and season

The Earth is tilted at an angle of 23.5° and revolves around the Sun in an elliptical orbit, making it closer to or further away from the Sun depending on the time of the year (where in the ellipse it is). This means the Sun radiates more in some areas of the Earth than others, depending on the location as well as the time of year.

Hour of the day

As the Earth rotates, sunlight strikes the surface at different angles, ranging from 0° (just above the horizon) to 90° (directly overhead). The more perpendicular a light source is to a surface, the more radiation the latter receives, so solar panels receive more sunlight and heat at midday than in the early morning.

The more slanted the Sun’s rays, the longer they travel through the atmosphere, becoming more scattered and diffuse.

Atmosphere and weather

Cloud cover, rainfall and snowfall can block sunlight from reaching the Earth’s surface, reducing irradiance levels.

The atmosphere has a blanketing effect over the Earth’s surface that is highest where there is low cloud cover and lowest in areas where there are clear skies with low temperatures and little water vapor. Persistent cloud cover scatters solar radiation back into space. Water has low reflectivity and absorbs the most sunlight, while snow is highly reflective and absorbs little sunlight.

Desert regions at high altitudes absorb above-average levels of solar radiation because of the effect of the atmosphere above is reduced.

Landscape

The characteristics of the landscape can affect irradiance, both in terms of atmospheric effects and obstructions to sunlight reaching the Earth’s surface. The higher the elevation of the land, the shorter the path that sun rays have to travel. And various structures such as trees, bushes and hills can block sunlight from reaching solar panels.

How Is Irradiance Measured?

Irradiance can be measured using three components: GHI, BHI and DHI.

  • HI represents horizontal irradiance. This refers to the fact that irradiance is received by a horizontal surface (0º tilt) on Earth.
  • G, B and D, stand for Global, Beam and Diffuse.
  • GHI refers to global horizontal irradiance. This is the total irradiance from the sun on a horizontal surface on Earth. There are two components to this value: beam horizontal irradiance (BHI) received from the Sun — sun rays — and diffuse horizontal irradiance (DHI), the light that is scattered and has no concrete direction due to the collision of the sun rays with the atmosphere, air molecules, water vapor, dust and pollutants.

GHI=DHI+BHI

Direct normal irradiance (DNI) refers to beam irradiance received by a perpendicular plane. BHI is equal to DNI after accounting for the solar zenith angle of the sun (z).

BHI =DHI+(DNI*cos(z))

How Does RatedPower Account for Solar Irradiance?

When you simulate a PV project in RatedPower platform, the plant’s expected energy production during its lifespan is part of the results generated.

Simulating a PV plant’s production is a two-step process. The first step is to evaluate the solar resource at a given location and the second step is to compute the energy yield of a hypothetical photovoltaic plant at that site.

1. Evaluating solar resources

Thanks to companies such as SolarAnywhere, Solcast, SolarGIS, Meteonorm, Vaisala 3 Tier, and others. calculating solar resources based on a typical meteorological year (TMY) is straightforward.

RatedPower offers three different sources of meteorological data, which vary between countries based on the dataset’s coverage. Users can also upload their own meteorological data.

RatedPower also accepts application programming interfaces (APIs) and integrations for the various stages of any project’s design and engineering.

2. Calculating energy yield

RatedPower has a built-in energy model, developed in-house by Félix I. Pérez Cicala et al. that computes the annual energy yield of any utility-scale solar photovoltaic power plant.

With TMY data in hand, RatedPower’s energy model will calculate the following aspects of your specific PV plant:

  • The transposition of the radiation components to the tilted plane
  • Using a library to compute the sun position
  • The sun-tracking algorithm used in single-axis trackers (backtracking)
  • Computation of the effects of shadows on the irradiance received by a tilted plane
  • Computation of the irradiance perceived by the back-face, used for bifacial simulations
  • Electrical generation of a photovoltaic module being irradiated, and its associated losses
  • Estimating the effect of partial shadows on strings of modules
  • Performance of an electrical inverter and window of operation
  • Electrical losses in a utility-scale photovoltaic plant

Streamline Solar Design for Faster, Smarter Solar Projects

RatedPower is your advanced solar modeling software for ground-mounted PV systems, enabling you to optimize designs 90% fasterincrease profits by 20%, and identify risks earlier in your project workflow. Automate your solar plant layout, electrical configuration, and civil design while generating fast and accurate energy yield estimates. Access an extensive equipment library, integrate custom equipment, and easily edit layouts for roads, structures, substations, and more. Generate over 400 detailed technical documents, including engineering designs, BOM, CAPEX, and financial KPIs (IRR, NPV, ROI), along with interconnection applications.

Take a product tour today and learn how Enverus RatedPower can revolutionize your PV plant design and interconnection process.

Enverus Press Release - Returning to growth: US power demand forecast highlights impact of data centers, EVs and solar

Challenges of Integrating Renewables Into Today’s Power Grids

What are some of the challenges grid operators face in the clean energy transition and what are some practical solutions?

The record pace of renewable energy capacity installation around the world is presenting unique challenges for power grids in integrating intermittent generation.

Power grid operators must come up with innovative solutions to manage renewable capacity and adopt smart systems to balance supply and demand in the most efficient way possible.

In this article, we look at the challenges grid operators face in integrating renewables and some of the potential solutions to overcome these challenges.

  1. Interconnected Power Grids Span Vast Distances
  2. Solutions to Today’s Power Grid Challenges

Interconnected Power Grids Span Vast Distances

Many of today’s electricity grids were designed in the 20th century when there was limited distributed energy capacity. They have grown on an ad-hoc basis as power consumption has increased with economic development.

The distinction of the world’s largest power grid depends on whether it is measured by installed generation capacity, transmission network length or distribution network length. Depending on the metrics, the largest grids are in North America, China and Europe.

The North American grid incorporates six regional entities across the continental U.S., the interconnected border provinces in Canada, and part of Baja California, Mexico. The interconnected grids are tasked with balancing energy supply and demand, managing security and making the transition to digitized systems that will enable smart grid management and coordination.

According to the Independent Electricity System Operator (IESO), which manages the power grid in the province of Ontario, Canada, the North American power grid “is a vast, interconnected network serving almost 400 million consumers across the continent, and is sometimes referred to as “the world’s largest machine.”

On the other side of the world, China’s power grid is incredibly far-reaching and the grid operator, the State Grid Corporation of China (SGCC), is building massive transmission lines as it aims to interconnect with the grids of its neighboring countries into a super grid. The SGCC has built the world’s longest single transmission line with the world’s largest transmission capacity. The Changji-Guquan ultra-high-voltage direct current (UHVDC) line is 3,324km long and has the capacity to transmit up to 12GW of electricity.

The SGCC plans to install more UHVDC lines as it increases electrification across its vast territory and as part of its Belt and Road Initiative — a network of power lines, railways and roads throughout Asia and beyond.

China’s power distribution is complicated by the large distances between its major generation sources and its cities. But UHVDC networks allow for renewable generation to be distributed quickly over long distances. For instance, in December 2020, the SGCC put a 1,587km UHV line into operation between Qinghai province in the north and the central Henan province. It was the first UHV line in the world built solely to transmit renewable electricity, the SGCC said. The line enables more renewable capacity to be installed in Qinghai and Gansu provinces while delivering power supply to the population centers in Henan.

A report by researchers from the Earth System Research Laboratory published in Nature Climate Change found that the U.S. could benefit from similar projects, as installing UHV lines could cut emissions by as much as 80% by transporting electricity from states with abundant wind power such as Wyoming to heavily populated states such as California.

Solutions to Today’s Power Grid Challenges

Grid operators face complex challenges in managing the energy transition while ensuring that their networks remain secure and deliver electricity without disruptions. Here are five challenges and potential solutions.

1. Variability and unpredictability of renewables

Forecasts suggest that 62% of global electricity will be generated by renewables by 2050, up from 27% in 2019. This will make it increasingly difficult for grid operators to plan and manage power flows effectively and avoid grid imbalances.

Solution: To manage this variability, power grid operators need to develop forecasting models that can accurately predict renewable generation based on weather patterns. Smart energy management solutions such as forecasts powered by artificial intelligence can improve prediction systems, and along with battery storage systems, can help power grid operators balance electricity supply and demand so that grids remain stable.

2. Grid modernization

Many transmission and distribution lines around the world are reaching the end of their lifespans. Distributing electricity over long distances causes significant energy losses in the form of heat, which only increase as the lines age. However, installing new lines to modernize grid infrastructure is costly. The integration of renewable systems in areas away from traditional power plant locations also requires the construction of new power lines.

Solution: Encouraging the adoption of distributed systems such as rooftop solar panels and small wind turbines enables households and businesses to produce their own electricity to meet their consumption needs, reducing the amount of electricity that flows through the power grid. This in turn reduces transmission losses and extends the lifespan of burdened power lines. Grid operators need to work closely with policymakers to adopt new regulatory frameworks for infrastructure development.

3. Frequent power outages

Extreme weather conditions are common causes of blackouts in places such as the U.S. and Australia, while an aging power system is causing an increasingly severe energy crisis in South Africa. Extended power outages can disrupt businesses, as well as damage electronic devices and cause the loss of important data.

Solution: Backup sources and distributed systems, such as battery storage for renewable generation, can ensure that power supply remains uninterrupted.

4. Electromobility

The adoption of electric vehicles, while reducing carbon emissions from internal combustion engines, introduces a new source of demand for electricity supply from power grids.

Solution: Smart grids can manage connected devices such as EV chargers, solar panels, batteries and other equipment using data analytics in real time to ensure that the equipment that is most in need receives supply. In addition, grids can install tap changers, switching capacitors and line regulators as well as battery storage to manage bi-directional power flows and limit to limit significant voltage fluctuation on the grid.

5. Security threats

Digitalization of the energy sector increases its vulnerability to cyber and terrorist attacks, which surged in 2022. Lithuania’s state-owned energy group Ignitis, Ukraine’s state nuclear power company Energoatom, and Greece’s largest natural gas supplier DESFA were among the energy companies hit by cyberattacks last year. And there was an increase in physical attacks on power substations in the U.S.

Solution: Microgrids, distributed generation and blockchain databases can help to prevent an attack from a single point disrupting the entire energy system.

The variability and unpredictability of renewable energy sources, the need to develop new infrastructure, the impact on the stability of the power grid, and security of supply are among the challenges that power grid operators face. However, by working closely with technology providers, policymakers and stakeholders, operators can navigate the clean energy transition to implement smarter, more efficient grids.

Streamline Substation Engineering Design for Faster Grid Integration

Aside from just PV and BESS project design, Enverus RatedPower can quickly design step-up substations and optimize your utility-scale plant interconnection with ease. Customize your transformer arrangements, transmission line configurations, and grid requirements to maximize power output and ensure seamless grid integration. Automate calculations for transformer losses, voltage conversion, and substation infrastructure to improve project estimations and cost-effectiveness. Instantly generate editable detailed documentation, including interconnection applications and engineering reports, to expedite approvals and streamline stakeholder collaboration. 

Take a product tour today and learn how Enverus RatedPower can revolutionize your PV plant design and interconnection process.

Enverus Intelligence® Research Press Release - The data center decade has arrived

The data center decade has arrived

CALGARY, Alberta (March 11, 2025) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing a series of reports analyzing long-term load forecast, providing an update on load growth and total system load, and the unprecedented capital expenditures cycle in the technology sector. Driven by the focus on scaling AI capabilities, the reports examine the implications for U.S. electricity markets, particularly in terms of data center capacity growth and maintenance.

EIR’s modeling considers not only historical drivers of power demand across the Lower 48, but also variable load drivers it believes will impact the future load. The organization has also revised its outlook on residential solar and storage, data center projections — including hyperscalers — and reshored manufacturing and the effects that these new exponential load drivers will have on EIR’s power demand forecasts from 2025-2050.

“Total power demand is set to climb 30% by 2050, driven primarily by artificial intelligence,” said Carson Kearl, analyst at EIR. “In the short term, EIR predicts a 15.83% rise in total annual energy consumption through 2035, stemming from a rapid data center buildout and rising electric vehicle adoption.”

“Reshoring manufacturing also has a modest impact on our load forecast, increasing average load by less than 3% by 2050. However, it will have a more pronounced regional effect in the Pennsylvania-New Jersey-Maryland (PJM) and the Southeast Power Pool ISOs,” Kearl said.

“If you are a believer in the gigawatt scale data center story, you should have long exposure to data center supply chain equities where ~$30B/GW will flow into high margin businesses, compared to ~$2B/GW in energy. If you are skeptical of hyperscaler growth beyond this initial rollout, both industries are overbought after the last 12 months of multiple expansion,” Kearl said.

Key takeaways from the report series:

  • Total load is forecast to grow 30% by 2050, driven by increased data center and baseload demand and overall electrification trends, partially offset by residential solar and storage expansion.
  • EIR predicts a 15.83% rise in total annual energy consumption through 2035, stemming from a rapid data center buildout and rising electric vehicle adoption.
  • Overall, we anticipate significant load growth in Electric Reliability Council of Texas (ERCOT), PJM and WEST regions by 2050. Daily load profile shapes are expected to evolve with greater adoption of residential solar and storage, as well as industrial load growth.
  • Reshoring manufacturing contributes minimally to our load forecast, lifting average load less than 3% by 2050. It will have more regional impacts on PJM and Southeast regions.
  • The technology sector is entering an unprecedented capital expenditures cycle focused on scaling AI capabilities, with hyperscalers’ annual U.S. AI spend expected to exceed $50 billion each by the end of the decade.
  • Capital is allocated between growing and maintaining datacenter capacity, with chips on a five-year replacement cycle costing ~$27 billion per GW. The ratio of growth to maintenance capex will shift significantly post-2030, making it harder for hyperscalers to expand their capacity stacks.
  • PJM will see the largest share of data center growth, followed by West, ERCOT and California Independent System Operator (CAISO). ERCOT will host the first official Stargate facility, totaling 2.2 GW by 2027, one of the largest data center campuses in the world.
  • Power capacity will nearly triple by 2035, but efficiency gains will result in a 31-fold increase in total compute. Leading large language models now outperform human experts on the Massive Multitask Language Understanding benchmark, with significant cost reductions in model output.
Enverus Intelligence® Research Graph - Aggregate L48 Load by Driver

EIR’s analysis pulls from a variety of Enverus products including Enverus Foundations® | Power & Renewables and Enverus Foundations® | Carbon Innovation.

You must be an Enverus Intelligence® subscriber to access these reports.

About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

Enverus Press Release - Enverus Earns Top Workplaces Honors for Fourth Consecutive Year

Strategies for Operators to Stay Ahead in a Hot M&A Market

The following blog is distilled from Intelligence® Research (EIR) publications and EIR’s very own Andrew Dittmar’s media statements on the Diamondback acquisition.

With U.S. upstream M&A reaching $105 billion in 2024—the third highest as recorded by Enverus—the market shows no signs of slowing down, with high price tag deals being driven by the scarcity of high-quality inventory. Kicking off the first large Permian deal of 2025, Diamondback Energy acquired part of the assets of Double Eagle IV for $4.1 billion. Diamondback is one of the largest players in the Permian Basin, second only to Exxon Mobil, based on gross operated oil volumes.[1]

A high price for an asset in the Permian is no surprise, as high-quality inventory is scarce. Although the recent Diamondback deal sets a new benchmark at $7 million per location, exceeding a comparable 2023 Permian deal of OXY’s CrownRock acquisition at $4.8 million per location.[2] Andrew Dittmar from the Enverus Intelligence® Research Team has state that this recent deal is pivotal because it represents one of the last remaining opportunities for a large, high-quality asset to be acquired from a willing seller.[1]

In order for private and mid-sized operators to stay competitive in today’s market, operators should explore opportunities in less consolidated basins, consider joint ventures or position themselves as attractive acquisition targets.

While building a new position in the Permian is challenging, it can be done, and the Double Eagle team has been as effective as, or even more effective than anyone in consistently building new positions and selling them at premium prices.
– Andrew Dittmar, Principal Analyst – Enverus Intelligence® Research[1]

How This Deal Affects Mid-Size Operators

1. Increased consolidation pressure: The $4.1 billion deal represents one of the last significant private positions in the Midland Basin and leaves very few remaining opportunities for mid-sized operators to acquire high-quality inventory.[1] The Enverus Intelligence® Research (EIR) analysts have highlighted that the large price tag could set a new benchmark, making acquisitions much more expensive for smaller players.[2]

2. Inventory access challenges: High-quality undeveloped acreage is becoming increasingly concentrated in the portfolios of large industry giants, while the remaining private companies with quality inventory (like Fasken Oil & Ranch and Mewbourne Oil) are family-owned and may not be interested in selling.[1]

3. Operational implications: There is increasing evidence of public companies valuing inventory over current production volumes, which creates challenges for private equity-backed portfolio companies operating outside the Permian and puts pressure on them to adopt new strategies.[2]

Learn how Enverus can help you uncover undrilled upside and assess remaining inventory accurately.

Top Five Strategies for Operators to Get Ahead in the Competitive M&A Market

Since 2020, there’s been a wave of consolidation in the Permian with nearly $90 billion in private assets being acquired by public companies.[3] The competitive dynamics may have changed, but there are strategies operators can apply to get a competitive edge, such as:

  1. Focusing on operational efficiency and development of existing assets. Enverus Intelligence® Research (EIR) analysts highlight that in the last two years, capital efficiency has become a key focus for investors when it comes to evaluating assets.[4] Companies with stronger operational efficiency metrics are commanding higher trading multiples [4] and mid-sized operators are facing increasing pressure to improve capital efficiency as inventory quality becomes more scrutinized.[5]
  2. Look for opportunities in less consolidated areas or other basins. Operators can turn to resource expansion opportunities that exist outside of core shale basins.[6] Legacy plays in the Mid-Continent and Rockies present viable targets that have been largely out of focus by the larger public players.[7]
  3. Acquire gas assets. Rising prices driven by LNG exports and data center demand have pushed some players to turn towards gas, with the value of gas-focused M&A increasing four times in 2024 compared to 2023. As LNG demand is expected to continue to grow, the current market presents an opportunity for mid-size operators to capitalize on this and acquire gas assets in anticipation of the demand growth.
  4. Consider joint ventures or partnerships as an alternative to acquisitions. There are many benefits to considering a partnership, including gaining access to diverse expertise and complementing one another’s technological and operational experience. By sharing financials, you also share the risk, allowing you to test new opportunities at a lower entry cost, including large opportunities that you may have not considered otherwise.[8]
  5. Potentially become acquisition targets themselves as larger players continue to consolidate the basin. Operators need to put themselves in the investors’ shoes, gaining insight into how the market is valuing their asset and whether it would be worth more in a buyer’s hands. Solutions like Enverus Inventory Suite can be used by operators to quickly and accurately screen potential deals on the buy- or sell-side.

Conclusion

Enverus Intelligence® Research (EIR) believes that as consolidation reshapes the Permian Basin, operators must adapt their M&A strategies to remain competitive in a landscape where high-quality inventory is increasingly controlled by industry giants. Strategic approaches such as improving capital efficiency, turning towards natural gas, exploring less consolidated basins and leveraging partnerships can provide a path forward. By proactively positioning themselves for success—whether as acquirers or attractive acquisition targets—operators can navigate the evolving M&A market and secure their place in the future of U.S. upstream.

Smarter M&A Decisions Start Here

In such an active M&A market, getting a handle on the right assets to develop can be a challenge. Traditional M&A evaluations take time and may rely on outdated inventory assumptions, making it difficult to assess asset value accurately.

Watch now as Enverus E&P Segment Leader Jeb Burleson highlights how BD, A&D and M&A teams are using Enverus Inventory Solutions to:

  • Screen, benchmark and validate assets with the most comprehensive inventory insights available.
  • Stay up to date on changing market trends and what it could mean for the industry.
  • Uncover undrilled upside and assess remaining inventory beyond simple acreage math.
  • Optimize deal economics with customizable scenario modeling and forecasting.
  • Standardize valuations using third-party validated analytics that investors trust.

Tune in to learn how you can be competitive in this fast-paced energy landscape.

Ready to uncover inventory insights and enhance your M&A strategy? Fill out the form below to learn more:

About Enverus Intelligence® | Research

Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.

References:

You must be a subscriber to Enverus Intelligence® | Research (EIR) products to view sources 2-8. To learn more, click here.

[1] Diamondback News Release

[2] FANG Spends $4.1 B on Midland Assets | [Double] Eagle’s Winning Legacy [Page1-3] (2025-02-19)

[3] Permian pricing soars to new heights with Double Eagle deal (2025-02-24)

[4] SMID-Cap Oil 4Q22 NAV Compass | Cheap Multiples in Search of Inventory [Page 1] (2023-04-20)

[5] Large-Cap Oil 4Q22 NAV Compass | Bullish Undeveloped Sections and Gas Hybrid E&Ps [Page 1] (2023-04-20)

[6] Secondary Basin Well Watching | The Best of the Rest [Page 2] (2024-10-02)

[7] Inventory Pricing Accelerates Higher [Page 9] (2024-07-29)

[8] Subsurface Innovation 3Q23 | Mergers, Alliances and Investments Unearthed [Page 4] (2023-10-18)

Enverus Press Release - Forecasting the unpredictable President Trump

Top 3 MISO Power Market Publication Takes for February 2025

February brought significant congestion risks and extreme weather events to the MISO market, testing the resilience of the grid and the accuracy of market forecasts. Enverus analysts closely monitored key congestion drivers, identifying major risks ahead of time and delivering actionable insights to traders. From predicting congestion on critical transmission paths like GIBS-FRCS and PRES-TIBB to outperforming the ISO load forecast during the February cold snap, our expert analysis provided a competitive edge. Below, we highlight the top three market takeaways from the month and their impact on trading strategies.

1. GIBS-FRCS Congestion

The Friday before the “Cold Snap,” in MISO, our team was touting a risk for GIBS-FRCS congestion during the coming week.  Judging by the shadow prices our view was correct.

Southern Indiana is particularly sensitive to supply imbalances between Gibson and Warrick coal units and the situation is made worse when Lawrence County does not ramp up.  While shadow prices were moderate through the period, Wednesday the 19th was particularly strong and did help to give INDY HUB a boost in the DA, adding roughly $1 to the On-Peak average highlighted in our Mosaic decomposition  below.

2. PRES-TIBB Congestion

On Tuesday morning, February 25, we called for weaker PRES-TIBB congestion for Wednesday’s DAM in the overnight and evening peak hours, with the Marion coal unit increasing generation.  So, what were the results?  Shadow prices dropped from $5,000 to $800 day-over-day, highlighted in our Mosaic tool below.

3. MISO Load Forecast Beats ISO Forecast During the Cold Snap

During the February cold snap from the 14th to 21st, the Enverus load forecast performed better than the ISO forecast. Over the week, Enverus load forecast MAPE (Mean Absolute Percentage Error) was 0.97% while the ISO forecast was 2.39%.

About Power Market Publications

Stay informed on the rapidly evolving power grid with Enverus Power Market Publications, which delivers daily updates on congestion, outages, new projects, load forecasts and hydroelectric generation. With insights from seasoned analysts and a six-in-one report package providing up to twice-daily updates, subscribers gain the research needed to make confident, data-driven decisions. Integrated within one platform, these reports offer transparent and traceable market analysis to help you stay ahead. Want to tour Power Market Publications? Get your free solution tour.

About Enverus Power and Renewables

With a 15-year head start in renewables and grid intelligence, real-time grid optimization to the node, and unparalleled expertise in load forecasting that has outperformed the ISO forecasts, Enverus Power and Renewables is uniquely positioned to support all power insight needs and data driven decision-making. More than 6,000 businesses, including 1,000+ in electric power markets rely on our solutions daily.  

Enverus releases Top 50 Public E&P Operators of 2024

The Shifting Winds of Energy Transition

British Petroleum Backs Away From Renewables

The following blog is distilled from an interview on CBC’s “The Eyeopener,” hosted by Loren McGinnis who interviewed Enverus Intelligence® Research’s (EIR) very own Al Salazar. Click here to listen to the full radio segment.

The tide is shifting in the energy sector. Energy companies are under pressure because of waning profit margins and mounting shareholder pressure to increase value, slowing the energy transition evolution (e.g., renewable power sources, electric vehicles). Coupled with the policy changes from the Trump administration, renewable energy faces new and big hurdles.

A Changing Landscape in Energy Transition

A tangible sign of this shift is BP’s recent decision to refocus on oil production and back away from renewables. BP is not alone in this pivot; Exxon and Shell have also restructured their strategies to prioritize traditional oil and gas over renewable ventures. So far, it appears betting on renewables has not yet yielded the expected returns compared to traditional oil and gas investments.

“Looking at Shell’s, Exxon’s and BP’s share prices, it hasn’t paid to double down on renewables.
Instead, oil and gas investment has been rewarded by shareholders.”
– Al Salazar, Director of Macro Oil & Gas, Enverus Intelligence® Research

Fossil Fuel Still Dominate

Enverus Intelligence® Research (EIR) believes demand for oil and gas will continue to grow throughout this decade. Al Salazar identifies several factors contributing to this trend:

  • Oil consumption: Oil demand reached an all-time high in 2024, growing by 1 million barrels per day from 2023. Despite the drive towards electric vehicles, gasoline demand has also risen.
  • Natural gas: The liquefied natural gas sector is witnessing increased trade. Global natural gas demand also likely reached an all-time high in 2024.
  • Coal utilization: Particularly driven by demand in Asia, coal consumption set a record in 2023.

Despite these recent trends and demographic shifts — particularly the aging populations in Europe and China — energy demand growth will slow down materially. However, EIR remains optimistic about the future of natural gas since it serves as a bridge fuel helping balance the intermittency of renewable generation.

“The world is getting older. Europe’s and China’s working age populations are declining, so too will the growth in energy demand. Demand growth over the next 25 years will slow materially.”
-Al Salazar, Director of Macro Oil & Gas, Enverus Intelligence® Research

The Net-Zero Challenge

The goal of net-zero emissions remains highly ambitious. Salazar points out that 80% of the 77 countries analyzed by EIR are failing to meet their renewable targets. On oil specifically, for the world to be on track to meet net-zero goals, the Internal Energy Agency suggests global oil consumption must fall to around 85 million barrels per day by 2030 — a challenging feat given demand during the COVID-19 pandemic only declined to 89 million barrels a day. For context, global oil consumption averaged about 103 million barrels per day last year.

Canada’s Strategic Position

Alberta and Canada have the potential to benefit significantly from the changing energy focus. The EIR director noted Canada holds vast amounts of critical minerals as well as robust oil and gas reserves, especially in underinvested areas like the Montney play in northeastern B.C. and northwestern Alberta. Market access, however, remains an issue for Canada producers. On the other hand, U.S. operators face increasing production costs as low-cost oil reserves dwindle.

Canada’s resource quality may provide a competitive edge, but capitalizing on these resources will require better market connections. This is a significant obstacle as new pipelines are usually opposed by environmentalists, and sometimes landowners, and such projects often cost far more than estimated.

Moving Forward: A Balanced Energy Future

The energy transition, while slowing, is not dead and should regain momentum. Ambitious targets set by companies and countries may have been too optimistic given current technological and economic constraints. Investments in this sector are substantial, potentially in the billions of dollars, and guaranteed returns are far from certain. The road to a new energy era will be difficult, but with realistic goals and strategic utilization of available resources, the journey is not only about transition but also sustainability and resilience. Despite the challenges ahead, EIR maintains a bullish outlook on the oil and gas industry as it serves a critical role in meeting global energy needs.

About Enverus Intelligence® | Research

Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.

Enverus Press Release - Enverus Earns Top Workplaces Honors for Fourth Consecutive Year

MarketView® by Enverus Trading and Risk Solutions Is Now SOC 1 Type 1 Certified!

We are thrilled to announce that MarketView®, a flagship product of Enverus Trading and Risk Solutions, has achieved the prestigious SOC 1 Type 1 certification! This milestone is a testament to our unwavering commitment to data integrity, security, and excellence. Additionally, Enverus is already SOC 2 compliant, further reinforcing our dedication to industry-leading standards in security and operational controls.

Introduction to MarketView

MarketView is a comprehensive energy commodity market data analysis platform designed to support the front, middle, and back offices in optimizing their roles. Our platform excels in delivering key insights through real-time and historical data and advanced charting capabilities. Whether you are engaged in energy markets, commodities, or financial services, MarketView equips you with the insights and tools necessary to navigate complex market dynamics.

Importance of SOC 1 Type 1 Certification

So, what exactly is SOC 1 Type 1 certification?

SOC 1 Type 1 certification is a rigorous evaluation administered by independent auditors to assess the effectiveness of an organization’s internal controls relevant to financial reporting. Achieving this certification is no small feat, as it involves a detailed examination of our processes, systems, and controls to ensure they meet the highest standards of data integrity and security.

Obtaining SOC 1 Type 1 certification involves an extensive review of our control environment, including risk management procedures, data protection mechanisms, and operational workflows. Despite the challenges, our dedicated teams worked diligently to meet and exceed these stringent benchmarks.

Why You Should Care About This Certification

  1. Trust and credibility: The SOC 1 Type 1 certification is more than just a badge of honor. It validates that we have implemented effective controls over processes relevant to the integrity and security of the data we handle. For our customers, this means they can trust that MarketView operates at the highest reliability and security standards.
  2. Customer confidence: Our customers can be confident that the data we provide is accurate and complete. The certification offers tangible proof that our systems are designed to protect the integrity of our data.
  3. Regulatory compliance: In a world where compliance is critical, our SOC 1 Type 1 certification demonstrates that our processes meet high standards and offers tangible proof of our robust controls. This is vital for our customers, who must adhere to strict regulatory requirements.
  4. Risk management: Effective controls are integral to our operations and help mitigate risks. By achieving this certification, we further safeguard our operations and our customers, ensuring resilience in the face of potential threats.

“Achieving SOC 1 Type 1 certification underscores our commitment to maintaining the highest standards of data integrity and security. It is a significant milestone that reflects the dedication of our teams and continuous effort to instill trust and confidence in our customers.”

– Matt Wilcoxson, Executive Vice President, Enverus Trading and Risk Solutions

As we celebrate this success, we look ahead to our next goal: achieving SOC 1 Type II certification later this year.

Trying Something New Doesn’t Have To Be a Risk

Try out our MarketView free trial today and see for yourself how Enverus Trading and Risk can optimize your time in the energy markets. Explore real-time commodity prices and more with MarketView today!

affordable energy

Reshoring Revival | Power and Policy

American manufacturing is experiencing a resurgence driven by growing support for locally made products, tax incentives and tariffs that encourage domestic production. Enverus Intelligence® Research’s recent report, Reshoring Revival – Powering U.S. Industry, explores the impact of this shift on the grid and assesses the nation’s ability to meet the rising demand for clean energy materials.

We project that manufacturing reshoring will account for less than 3% of our updated load forecast by 2050, with data centers and electrification driving the most significant growth. The manufacturing load is expected to steadily increase through 2050 as domestic adoption expands.

The impact of Inflation Reduction Act credits cannot be overstated. Alongside tariffs, these incentives helped establish cost parity for domestic chip manufacturing and created a favorable environment for battery production. However, wind blade and solar panel manufacturing remain more expensive than they are internationally, posing ongoing challenges for U.S.-based production.

Enverus Intelligence® Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.

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