A recent study conducted by Aurora Energy Research unveiled that battery storage facilities significantly contributed to saving the Texas grid over $750 million during peak demand days in winter 2024.
These facilities played a pivotal role in ensuring uninterrupted power supply during the scorching summer of 2023 and released over 3GW of capacity from natural gas power plants during critical hours.
Mitigating the Impact and Costs of Extreme Weather Events
Since 2020, Texas has faced a series of challenges, including severe winter storms and escalating power demand, putting its grid resilience to the test. The upcoming summer is anticipated to present similar challenges. The report underscores how battery energy storage systems (BESS) in Texas are effectively mitigating the impact and costs of extreme weather events.
Over the past three years, companies in Texas have swiftly constructed BESS facilities, proving to be indispensable in maintaining reliable, cost-effective, and dispatchable power during periods of high demand. These systems have effectively addressed the complexities of the grid caused by intermittent renewable energy sources and challenging weather conditions. Moreover, the report highlights that batteries have not only reduced system costs but have also enabled increased natural gas generation, thereby supporting grid stability.
Enhanced Reliability During Critical Periods
Olivier Beaufils, ERCOT Market Lead at Aurora Energy Research, emphasized that BESS in Texas have enhanced reliability and reduced costs during critical days, such as the Winter Storm in January. He noted how batteries have facilitated additional natural gas generation without compromising backup service availability.
During extreme conditions, BESS have played a significant role in cost reduction while ensuring uninterrupted power supply. For example, during the winter freeze of January 2024, BESS units saved an estimated $750 million in day-ahead market costs and released up to 3GW of gas generation. Similarly, on September 6th, 2023, amid soaring temperatures and high power demand, batteries prevented emergency load-shedding events by dispatching 2GW of power when ERCOT reserves were at their lowest.
Critical Capacity Resources When Most Needed
Beaufils highlighted the pivotal role of batteries in storing and shifting energy, converting it into crucial capacity resources available when most needed. He underscored their contribution to maintaining grid stability during extreme weather events or unexpected generator failures, historically tasks handled by natural gas generators.
The report offers evidence-based analysis for stakeholders and policymakers involved in enhancing grid reliability and market design within ERCOT. Leveraging historical data from ERCOT and Aurora’s modeling, it provides valuable insights into the future role of BESS and natural gas in ensuring grid reliability as power demand continues to grow.