New Analysis Shows Energy Storage Keeps Costs Low and Power Reliable in Texas

• Addition of 5 GW of energy storage in one year helped Texas avoid conservation notices 

• $750 million in energy cost reductions in the Summer of 2024 

WASHINGTON DC, December 9, 2024 — The American Clean Power Association (ACP) today released an analysis highlighting how recent significant additions of energy storage capacity over the past year in Texas has resulted in lower energy costs for consumers, the ability to avoid conservation appeals, and has enabled the power grid to better navigate extreme weather events.  

Key findings include:  

• Energy demand in Texas has skyrocketed over the past two years.   

• Large capacity additions of energy storage (5 GW) over the course of one year in Electric Reliability Council of Texas (ERCOT) region helped outpace rising energy demand. 

• Energy storage capacity additions contributed to $750 million in cost reductions, creating savings for consumers.  

• Energy storage capacity additions helped prevent conservation appeals during Summer 2024 and helped ERCOT navigate prolonged moments of stress that would traditionally threaten the grid with power outages. 

ERCOT has confirmed the important role energy storage plays in maintaining reliability at critical moments in a cost-efficient manner.  

“Energy storage is doing the job it was designed to do, delivering affordable power for Texas during the most critical moments, whether historic heatwaves or winter storms,” said Noah Roberts, VP of Energy Storage for ACP. “This flexible resource is both boosting the reliability of the grid and delivering cost savings for families and businesses. It has truly been a game changer for the state and ERCOT’s ability to navigate moments of stress on the power grid.”  

“Significant load growth in ERCOT over the last two years has created record-setting electricity demand in the state and new stresses on the power grid,” said John Zahurancik, Fluence President, Americas. “During this time of growing demand, we’ve seen a rapid deployment of battery storage capacity across the state, increasing 5X from 2022 to 2024 and delivering more than $750 million in savings for consumers. As this analysis clearly demonstrates, these battery storage resources are central to an all-of-the-above approach to energy independence, and a commonsense solution that brings greater flexibility, resilience, and affordability to the state of Texas.” 

“Texas continues to experience strong growth and unprecedented energy demand. Battery storage is essential in meeting this demand by providing cost-efficient energy when it is most needed,” said Eric De Caluwé, Managing Director of Flexible Generation for ENGIE North America. “As storage developers and operators, we are dedicated to ensuring that Texas residents and businesses have reliable electricity. Battery storage lowers consumer costs by storing surplus energy and releasing it during peak demand, avoiding the need for more expensive resources. These systems are highly flexible and respond quickly, significantly enhancing grid reliability during critical moments.” 

Texas has seen skyrocketing energy demand in recent years due to increasing population, electrification, and new industrial energy users. The state set records for electricity demand in both 2023 and 2024. This rise in demand, coupled with increasing weather events, has resulted in significant stress placed on the power grid in Texas. 

However, in the past year alone, ERCOT has deployed 5 GW of energy storage. This has contributed to the state’s ability to outpace rising energy demand and help avoid conservation appeals and power outages.  

Texas and its independent market operator, ERCOT, has thus served as a prime example of how rapidly our energy systems must evolve in the United States to be able to consistently deliver reliable and affordable energy to consumers—especially when Texans need it most.    

Texas is expected to continue adding large amounts of energy storage capacity to its grid, with nearly 4.5 GW currently under construction and an additional 7.3 GW in the pipeline.  

To read more, access ACP’s analysis HERE.