Batteries are playing a small but growing role in boosting Texas’ energy supply, which has been strained this summer by record high temperatures and demand throughout the state.
As the market grows – and production and operational costs decrease – Texas is becoming more attractive to battery developers.
By 2024, more than 7,500 megawatts of battery storage projects are set to begin in Texas. An additional 100,000 megawatts of battery projects are proposed through 2028, a 60% increase since July of 2022.
In addition to increased demand, the growth can be attributed to tax incentives for manufacturers and operators from the federal Inflation Reduction Act. These projects are also popular with developers who get a financial boost from buying power for recharging during off- peak times, typically in the morning when prices are cheaper, and selling the power back at high-demand times for a higher price.
In 2019, the state grid used almost no battery power. That number has increased from 275 megawatts in 2020 to more than 3,500 today. About 10,000 megawatts are expected to be available by the end of next year.
During a recent high-demand event, batteries sent 2,172 megawatts, or about 3% of demand, to shore up the grid, which was about to hit emergency status. One megawatt can power 200 homes.
Industrial batteries vary in size and in charging sources. Some can charge directly from solar or wind farms, while others can charge from any source already on the grid.