General Electric Company (GE), ABB Ltd (ADR) (ABB): The $10 Billion Opportunity in Grid Storage

GE has become heavily involved in grid storage due to its extensive investments in wind energy. Its latest turbines come with storage integrated into them.

What makes General Electric Company (NYSE:GE) interesting is its research arm. The company has decided to make Atlanta the center for its “smart grid” work, working in conjunction with Georgia Tech on a range of grid solutions. This puts it in an excellent position to take advantage of changes in storage technology.

The problem, for investors, is that GE is already so large that the grid storage boom may not make much of an impact on its bottom line. The company already brings in $33 billion in revenue each quarter, so if grid storage is a $2.5 billion per quarter business in 2018, as Lux Research believes, it will be incremental to GE’s larger results.

Despite this, I keep General Electric Company (NYSE:GE) as a core holding. It’s a big cap stock with a strong dividend. It’s unlikely to let you down from here.

The Foolish bottom line: You have time

Based on this analysis, my own portfolio is mismanaged – maybe I should fire me. I hold some shares in GE, but none in ABB Ltd (ADR) (NYSE:ABB).

This is a mistake I will correct in the next few weeks. The good part of this opportunity is that you have plenty of time to take advantage of it.

The article The $10 Billion Opportunity in Grid Storage originally appeared on Fool.com and is written by Dana Blankenhorn.

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