High oil prices could boost renewables, says Energy Vault CEO
Series CEO spotlight,
Episode 12:
Robert Piconi, the Chair and CEO of Energy Vault, says high oil prices could actually be good news.
Select your language
Generated with artificial intelligence.
Listening:
High oil prices could boost renewables, says Energy Vault CEO
Energy Vault, a firm specialised in energy storage solutions for renewable sources such as solar and wind, is something of an exception for a Swiss-born company. It listed on the New York Stock Exchange (NYSE) in 2022 via an accelerated route called a SPAC (Special Purpose Acquisition Company) after raising more than $200 million (CHF156 million) as a startup – a record.
Swissinfo spoke with Robert Piconi, the American co-founder, Chairman and Chief Executive Officer of Energy Vault, in Lugano, canton Ticino. He discussed why the company established part of its operations to the United States and how he is leveraging electricity price volatility.
Swissinfo: How are you affected by current geopolitical tensions, including US tariffs and the ongoing instability in the Middle East?
RP: These tensions create uncertainty and tend to shift investor sentiment towards more predictable assets such as gold and fixed income. US tariffs have had a significant impact on us, effectively constraining access to the US market, as much of the battery supply chain depends on China.
We estimate that recent Middle East tensions have had a negative impact of around 25–30% on our share valuation, offsetting some of the gains from our strong 2025 performance. At the same time, sustained high oil prices can make renewable energy and storage solutions more attractive.
Swissinfo: Has the energy crisis and the high oil prices already led to more client interest?
R.P: Yes, absolutely. We are seeing a sharp increase in both inquiries and firm orders for our Battery Energy Storage System solutions from customers across both the American and European markets.
Sustained volatility in global energy markets has fundamentally shifted the corporate focus toward energy security and long-term cost stability. This dynamic is now being heavily compounded by the exponential surge in electricity demand from AI, data centres, and expanding digital infrastructure. There is an immediate, massive requirement for scalable, reliable power.
As a result, client engagement has moved rapidly from conceptual interest to immediate, utility-scale execution. Customers are actively procuring our medium- and long-duration storage solutions to firm intermittent renewables and ensure 24/7 grid stability under unprecedented load pressures. While our baseline growth remains anchored by secular trends like decarbonisation and grid modernisation, the current macro environment has dramatically accelerated both the velocity and scale of our commercial pipeline.
More
Swiss gravity battery contributes to China’s energy transition
Swissinfo: On the other hand, several countries are slowing their green energy commitments. How does this affect Energy Vault?
RP: While some governments are reassessing policies — for example, the current US administration has expressed scepticism towards wind energy technologies due to their high costs — the underlying demand for electricity remains extremely strong and continues to drive increasing demand for energy storage solutions.
For instance, the expansion of AI infrastructure — driven by hyperscalers such as Meta, Microsoft and Amazon Web Services — is creating a surge in demand for large-scale data centres, often exceeding available electricity supply and, in some cases, leading to increased reliance on coal-fired generation.
Another important area of growth is modular data centres. These are pre-engineered, prefabricated units built in factories and deployed rapidly on-site. They are quick to install, easily scalable and highly flexible in terms of location.
As a matter of fact, wind and solar can be cost-effective energy sources provided storage is affordable. This is precisely where our solutions are essential.
Swissinfo: Is China still a key market for you?
R.P: Regarding China, our business continues to develop in line with expectations. The Rudong facility, which we opened in 2023, remains a strategic project, both as a commercial deployment and as a demonstration of our technology at scale. More broadly, China represents an important long-term market given its leadership in renewable deployment and storage adoption, and we continue to evaluate additional opportunities where our technology can support grid flexibility and stability.
Swissinfo: You founded Energy Vault SA in Ticino in 2017. As an American, what led you to establish the company in this region?
Robert Piconi: I was based in Lugano, running a healthcare diagnostic imaging company I had just sold, when Bill Gross — founder of California-based Idealab, which has created more than 150 companies — contacted me. At the time, Bill was working on new solar and mechanical technologies with Andrea Pedretti, our current Chief Technology Officer, who was also based in Ticino with his technical team.
It was therefore quite natural for us to establish Energy Vault SA in Lugano, where we began our research and development activities with initial funding from Idealab. Today, we also have commercial operations in Ticino covering the Europe, Middle East and Africa region. Our main research partners in Switzerland include ETH Zurich, for AI software development, and the Cemex Innovation Center, for carbon-neutral alternative materials. We currently employ 24 people in Switzerland and are continuing to expand.
Swissinfo: In 2019, why did you create Energy Vault Inc. in California as a second operational hub?
RP: We saw the United States as the largest energy storage market after China. It is also an excellent location to recruit engineers specialised in battery software and grid infrastructure. In addition, as we intended to list the company in the United States, we established a holding company there — Energy Vault Holdings Inc.
Swissinfo: Did you consider listing on European exchanges or on the SIX Swiss Exchange?
RP: From the outset, we favoured US exchanges because they are more liquid and provide better access to capital.
Swissinfo: In 2020, Energy Vault was named a Technology Pioneer by the World Economic Forum (WEF). Only few companies are selected. Did this recognition translate into tangible business benefits?
RP: Yes. It enabled us to participate twice in the Annual Meeting in Davos, where we connected with an exceptional network of leaders, including prospective customers and partners. It also provided global visibility, which proved very helpful when raising funds.
Swissinfo: In 2022, Energy Vault became publicly listed via a SPAC.* Did you also consider a traditional IPO?
RP: We evaluated several options, but chose the SPAC route because it was the fastest way to go public, given the strong investor appetite for high-growth, sustainability-focused companies. As part of the transaction, we secured significant financial backing from early investors such as Saudi Aramco and SoftBank, as well as new investors including Korea Zinc and China Tianyin. Unlike many companies that went public via SPACs, we were already generating substantial revenues — $146 million in the year we listed and nearly $350 million the following year. In total, we raised approximately $236 million through the transaction, despite operating in a relatively new sector with only a handful of listed peers.
Swissinfo: How do you manage the short-term pressures associated with being a listed company, such as quarterly reporting and expensive disclosure?
RP: There is indeed a quarterly cadence — you finish one quarter and immediately begin preparing for the next. It requires discipline and structure. However, this does not distract us from innovation or long-term growth. While we provide annual guidance, we have chosen not to issue quarterly guidance, making use of the flexibility available to listed emerging growth companies.
Swissinfo: You initially focused on gravity-based energy storage, in short, lifting heavy masses to convert electrical energy into potential gravitational energy. Why did you expand into battery and green hydrogen storage in 2022?
RP: Our initial focus was indeed on gravity-based storage using modular towers, which are particularly suited to long-duration storage — around eight hours. In this context, the duration refers to how long the stored energy can be discharged at full power. But at the same time, we developed a software platform that is central to interacting with the grid and managing assets, including predictive maintenance and safety.
After going public, it became clear that the majority of the market was in short-duration storage — typically two to four hours — which led us to expand into battery storage. Our software platform enables us to manage both gravity and battery solutions.
We later added green hydrogen, which is suited to very long-duration storage — for example, up to 48 hours as a microgrid backup for an entire city. Actually, in 2024, we signed a 10-and-a-half-year contract with Pacific Gas and Electric Company in California to provide backup power for up to 48 hours using green hydrogen during grid outages.
Swissinfo: How do you generate revenues?
RP: It depends on the contractual structure. In some cases, we charge for storage services; in others, we buy electricity when prices are low and sell it when prices are higher. Our software platform uses AI to optimise market participation, determining the best times to store or dispatch energy.
Swissinfo: Two years ago, why did you evolve from a pure technology provider into a company that also builds, owns and operates its own energy storage plants?
RP: After our listing, annual revenues increased from $146 million to $350 million, but then fell to approximately $50 million. This volatility reflected the rather unpredictable nature of a pure technology provider model, with revenues dependent on contract timing and implementation delays. Margins were also relatively low.
With the support of our investment bank, we analysed the entire value chain — including hardware providers, integrators, utilities and independent power producers. We concluded that the largest share of profit accrues to independent power producers, which typically operate under 10- to 15-year offtake agreements, generating stable and attractive recurring revenues. In markets such as the United States, they also benefit from investment tax credits.
This analysis led us to evolve towards a build-own-operate model for energy storage plants. This vertical integration enabled a strong performance in 2025, with profitability achieved for the first time in the fourth quarter. We currently own and operate two plants, with two additional ones under construction.
In Switzerland, we recently delivered a battery energy storage hub for Schindler to support its decarbonisation objectives. We have also signed an agreement with Energie Wettingen AG, a public utility in canton Aargau, for a battery storage system platform. Additional projects are in the pipeline.
Swissinfo: Who are your typical clients, and who are your main Swiss clients?
RP: Our clients include local governments, utilities, independent power producers and large energy users such as mining companies and major technology firms operating large data centres for AI applications.
In Switzerland, we recently delivered a battery energy storage hub for Schindler to support its decarbonisation objectives. We have also signed an agreement with Energie Wettingen AG, a public utility in canton Aargau, for a battery storage system platform. Additional projects are in the pipeline.
*Editors’ note: A SPAC (Special Purpose Acquisition Company) is a “blank cheque company” created to take another company (e.g. Energy Vault) public without going through the traditional IPO process.
Edited by Virginie Mangin/ds
More
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.