<\/p>\n
Tesla’s Megapack is an example of the utility-scale batteries that are becoming a larger part of Texas’ power grid. Austin Energy is investing in large battery projects as part of its strategy to manage power costs and growing electricity demand.<\/p>\n
Tesla\/Courtesy of Tesla, Inc. <\/p>\n
Austin Energy<\/a> is investing big in big batteries\u00a0\u2014 and small ones\u00a0\u2014 in an effort to keep electric rates from swinging out of control during periods of high demand.<\/p>\n In the past year, the Austin City Council has approved several major battery projects for the utility; collectively they can provide hundreds of megawatts of power to the Texas grid when needed.<\/p>\n Article continues below this ad<\/p>\n A heat dome parked over the Southwestern U.S.<\/a> has brought intense heat to Texas in recent weeks, at times driving\u00a0record-breaking electricity demand<\/a>, according to the state\u2019s grid operator, the Electric Reliability Council of Texas.<\/p>\n When demand is high and supply is lower\u00a0\u2014 like on hot days with calm winds or summer evenings just after the sun sets\u00a0\u2014 power prices can soar. And that demand is expected to keep growing: And Texas’ power needs are expected to grow sharply: ERCOT officials said in July that statewide demand could reach about 175,000 megawatts by 2032, nearly double the record set this summer<\/a>.<\/p>\n The potential for price spikes is a major reason the utility has set its sights on batteries, according to Pat Sweeney, vice president of energy market operations for Austin Energy.<\/p>\n \u201cThey function effectively like a power plant, except their fuel is energy off the grid,\u201d Sweeney said. \u201cWe buy the energy to store in the battery at a price that\u2019s hopefully lower than what we get when we sell it out of the battery.\u201d<\/p>\n Article continues below this ad<\/p>\n Austin Energy\u2019s battery strategy, according to Richard G\u00e9nec\u00e9, the utility\u2019s vice president of customer energy solutions, is two-pronged: big, utility-scale batteries<\/a> that provide power directly to the grid, and a network of smaller batteries installed at customers’ homes that the utility can tap into as needed.<\/p>\n Austin\u2019s big batteries will be able to contribute a combined 300 megawatts to the ERCOT market once they are fully built out. The utility has signed two large battery agreements: a 20-year, $165 million contract with OCI Energy for a 100-megawatt facility in May, and a $320 million, 20-year contract with Jupiter Power for a 200-megawatt battery in July.<\/p>\n The utility-scale batteries are large, as far as batteries go, but \u201cthey\u2019re not especially exciting to look at,\u201d Sweeney said.<\/p>\n \u201cYou have maybe an acre, or a couple acres of land,\u201d Sweeney said, \u201cand then what you would see would be something like a bunch of, basically, shipping containers.\u201d<\/p>\n Article continues below this ad<\/p>\n \u201cThink of each one of those as a smaller battery,\u201d he added. \u201cYou put a bunch of those together, and you end up with a big battery, essentially.\u201d<\/p>\n Those batteries can be discharged based on grid conditions to help smooth supply and demand extremes. The balancing act serves as a hedge against price spikes, Sweeney said.<\/p>\n \u201cIt\u2019s smoothing out the energy supply-demand balance, but also taking advantage of what that means on pricing as well,\u201d\u00a0Sweeney said.<\/p>\n Austin-based Base Power plans to use the former Austin American-Statesman building for shipping and manufacturing, seen Oct. 7, 2025. Austin Energy recently signed a 10-year, $40.8 million contract with Base Power for 40 megawatts of distributed battery storage.<\/p>\n Sara Diggins\/Austin American-Statesman<\/p>\n Smaller batteries distributed across the city can serve much the same function, G\u00e9nec\u00e9 said. Earlier this year, Austin Energy launched a pilot program called\u00a0Power Partner Battery<\/a> that allows customers with backup battery systems in their homes to send power back to the grid in exchange for a stipend from the power company.<\/p>\n Article continues below this ad<\/p>\n Austin Energy will pay $500 up front to help pay for a new battery system, and then up to $75 for each kilowatt the battery provides. The utility will always leave customers’ batteries at least 20% charged, G\u00e9nec\u00e9 said.<\/p>\n \u201cLet\u2019s face it: 99% of the time, it\u2019s not doing anything. We can offer you a benefit for that if you\u2019ll allow us to access the power of that battery,\u201d\u00a0G\u00e9nec\u00e9\u00a0said.<\/p>\n Currently, he said, the program has enrolled 150 participants, representing about 2 megawatts of energy. The goal of the pilot is to hit 1,500 participants before deciding whether to make the program permanent.<\/p>\n Batteries from FranklinWH, Generac, SolarEdge and Austin-based Tesla are currently eligible for the program. Tesla has deployed about 1,000 of its Powerwall systems<\/a> in the Austin area since 2017, and they make up the largest chunk of home batteries enrolled in Austin Energy\u2019s program.<\/p>\n Article continues below this ad<\/p>\n<\/p>\n
<\/p>\n