Grid modernizations fuel new wave of energy storage projects

Battery energy storage has quickly become one of the fastest-growing segments of the nation’s energy infrastructure market. Rapid population growth, expanding data center development, electrification, renewable energy integration, and increasing concerns about grid reliability are driving utilities and public agencies to invest in large-scale energy storage systems at an unprecedented pace.  

The U.S. Energy Information Administration projects that battery storage capacity will continue to expand rapidly over the next several years as utilities seek cost-effective ways to improve reliability, manage peak demand, and strengthen resilience during severe weather events. Federal incentives, state energy policies, and growing private sector investment are accelerating this trend, creating a significant pipeline of opportunities for engineering firms, construction companies, technology providers, equipment manufacturers, and energy consultants. The following projects represent several major procurements that are expected to move toward the marketplace over the next several years. 

Officials in Nashville, Tennessee, have announced an estimated $439 million, 100-megawatt battery energy storage project that will involve several electrical substations in the area. The objective is to make the grid more reliable, control peak demand for electricity, and boost power when the system is under strain. 

Nashville is one of the fastest-growing metropolitan areas and the growth is beginning to stress the region’s power infrastructure. 

The work will call for batteries that connect to Nashville Electric Service’s distribution system and charge during periods of low demand before releasing electricity during peak use. Once operational, the batteries will enhance service reliability for approximately 12,000 homes and businesses. 

The project is in the planning phase, with solicitations expected to be issued in phases from late 2026 through the first half of 2027. 

A $413 million grid resiliency project will be overseen by the Alaska Energy Authority. The effort is designed to strengthen the state’s Railbelt Transmission System and support the integration of new and expanded battery energy storage resources on the Kenai Peninsula, a 9,000-square-mile region in south-central Alaska. 

The project will create a high-voltage direct current transmission pathway that will operate as a parallel route connecting the Kenai Peninsula to Anchorage load centers. Current plans include approximately 40 miles of submarine cable, eight miles of overland cable, new converter stations, and infrastructure designed to support increased bidirectional power flow. The objective is to improve grid stability and support reliable power delivery as the region adds new generation and storage resources. 

Preliminary engineering and environmental routing work has been completed, and the project is progressing through design, permitting, and procurement development. Solicitation documents for marine survey contractors and suppliers of cable and converter systems are expected in the coming months. Construction is anticipated to begin in January 2029. 

Officials in Lake Worth Beach, Florida, have announced plans to invest $46.9 million in a project to modernize the city’s electric utility system through advanced grid technologies, battery energy storage, and distribution system improvements. Supported by a U.S. Department of Energy grant and matching local funding, the project is intended to enhance electric reliability, increase resilience during severe weather, and improve the integration of renewable energy resources into the municipal electric system. City leaders view the investment as a long-term effort to reduce outages, improve operational efficiency, and provide more reliable electric service. 

Planned upgrades include battery energy storage, advanced metering infrastructure, automated distribution equipment, upgraded communications networks, fiber-optic connectivity, substation modernization, and distribution automation technologies that will allow the utility to respond more effectively to outages. Additional improvements include enhanced system monitoring, improved grid controls, and better integration of renewable energy resources. Together, these investments are intended to provide greater operational flexibility during emergency events and periods of peak electricity demand. 

The project remains in the planning and preliminary implementation stage, with engineering and program development activities underway. Procurement opportunities will be announced as these initial phases are completed. 

Energy officials in Louisiana are in the planning and development phase of launching a statewide energy resilience program that could direct approximately $498 million toward microgrid, battery storage, and critical infrastructure upgrades. The program is designed to support innovative transmission, storage, and distribution infrastructure that improves grid reliability at mission-critical facilities throughout the state. 

The initiative will focus on developing a network of community resilience hubs supported by distributed energy resources, microgrids, long-duration energy storage, and grid-interactive technologies. These hubs will provide reliable backup power during outages, strengthen emergency response operations, and help communities identify facilities requiring resilient energy support during hurricanes, extended outages, and other grid disruptions. Initial pilot projects have been identified, while future investments will be guided by local energy planning, statewide grid assessments, and community resilience priorities. 

The statewide planning effort is expected to begin in September 2026 and will establish project requirements, selection processes, and resilience priorities. Additional deployment and demonstration projects are expected to follow in 2027, creating opportunities related to energy storage, microgrids, grid controls, engineering, design, and critical facility resilience improvements. 

A utility-scale Energy Storage Procurement Program will add 200 to 300 megawatts of battery storage capacity to Maine’s electric grid. While a final cost estimate has not been established, the initiative is expected to generate hundreds of millions of dollars in private investment. 

Current plans include battery storage units, power conversion systems, communications and control systems, substations, and numerous supporting technologies. Once completed, the project will provide backup power during periods of peak demand, improve grid resiliency, support greater renewable energy integration, and reduce the need for costly transmission upgrades. Solicitation documents are expected to be released in late 2026. 

As utilities nationwide work to modernize aging electric systems and prepare for growing energy demand, battery storage projects are moving from pilot programs to essential infrastructure investments. The opportunities extend far beyond battery manufacturers, creating demand for engineering, environmental services, construction, communications systems, cybersecurity, software, controls, substations, transmission infrastructure, and long-term maintenance services. This new marketplace is expected to expand rapidly.