According to a new report from Aurora Energy Research, BESS in Texas helps reduce the impact and cost of extreme weather.
The report highlighted that BESS facilities have proved to be an important component of Texas’ energy mix by helping the state maintain reliable, cost-effective and dispatchable power in times of high demand. They have helped address system dynamics created by intermittent renewable energy and the grid’s challenging operating conditions which are worsened by extreme weather conditions.
The report found that batteries have helped lower system costs in regular and extreme conditions, while enabling increasing natural gas generation.
During the January 2024 winter, BESS units saved an estimated $750 million in day-ahead market costs by fulfilling essential ancillary services and freeing up to 3 GW of gas generation to meet critical energy needs and reduce prices. Throughout the summer and on September 6, 2023, amid extreme summer heat and surging power demand, batteries served and prevented an emergency load-shedding event by dispatching a peak of 2 GW of power when ERCOT reserves were lowest.
“Batteries store and shift energy, especially inexpensive energy, and convert it to critically useful capacity resources that are dispatchable during the hours of the day when it is most needed,” said Olivier Beaufils, ERCOT Market Lead at Aurora Energy Research. “They fulfill an increasing share of Ancillary Services and help ERCOT maintain grid stability during extreme weather events or when large generators or transmission lines suddenly trip offline—a role that has historically been played by natural gas generators.”
Aurora used its own modeling and forecast data to provide a forward-looking view of the role BESS and natural gas will play in maintaining grid reliability as ERCOT power demand grows in the future.
