Batteries play an increasingly important role in the Texas energy system, providing electricity to homes and businesses during times of high demand. On a recent night, the batteries supplied a record 2,172 megawatts to the grid, enough to power approximately 434,000 homes. This represents a significant improvement compared to just three years ago, when the state grid had almost no battery storage capacity.
The growth of battery storage in Texas is due to several factors. First, reduced production costs make batteries cheaper to manufacture and operate. In addition, the tax incentives provided by the Inflation Reduction Law encouraged its growth. Texas is an attractive location for battery developers because of the large fluctuations in electricity prices in the ERCOT market, which allows operators to buy low and sell high.
One of the advantages of batteries is their ability to absorb excess energy from the grid when prices are low and release it later when demand is high and prices rise. This flexibility makes the batteries valuable in times of tight supply, such as the second-hottest summer in Texas. They provide an additional source of energy when solar production declines in the afternoon but demand remains high.
The growing importance of batteries is also due to the transition to renewable energy in Texas. The state has abundant wind and solar resources, but its variability creates gaps in power supply. Batteries help fill these gaps by quickly providing power when renewable sources are unavailable. This is especially important as Texas seeks to reduce its reliance on fossil fuel-powered plants, which produce greenhouse gas emissions linked to climate change.
While gas-fired power plants can produce electricity as long as fuel is available, it takes longer to start up. On the other hand, batteries have the advantage of turning on quickly. As Texas continues its transition to renewable energy, batteries play an important role in ensuring a reliable and sustainable energy system.
