A new independent analysis from Aurora Energy Research, commissioned by ACP, illustrates the role that batteries play within the Southwest Power Pool (SPP) region and examines their impact on SPP power markets.

As the Southwest Power Pool (SPP) anticipates significant growth in electricity demand and an increasing reliance on renewable energy, flexible resources like energy storage are becoming essential.

Key takeaways:

  • Growing Demand and Renewables: SPP’s peak electricity demand is projected to reach approximately 69 gigawatts (GW) by 2035. At the same time, renewable energy is expected to make up about 55% of the installed capacity. This combination creates a need for flexible solutions to manage the grid effectively.
  • Cost Savings: Deploying a moderate amount of battery storage over the next decade could save the system $7 billion in total costs. This is largely because batteries can discharge during peak demand hours, which helps lower daily peak electricity prices.
  • Grid Flexibility and Reliability: Batteries provide instant, dispatchable power. They can charge when renewable energy is abundant and cheap, then discharge during high-demand periods when costs are higher. This balances the grid and enhances overall reliability, especially during periods of high stress. Adding 4 GW of battery storage will significantly boost grid reliability and deliver savings to American consumers.

In short, energy storage is a natural and crucial complement to both renewable and traditional generation, helping to ensure a stable, reliable, and cost-effective energy supply for the future.

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