The rapid expansion of energy storage capacity in Texas since 2023 has resulted in at least $750 million in savings for consumers, according to a report by the American Clean Power Association (ACP) published on December 10, 2024. The deployment of 5 GW of new energy storage, including 4 GW added in 2024, has contributed to lower electricity prices on the Electric Reliability Council of Texas (ERCOT) grid, improving grid reliability while reducing peak power costs and ancillary service prices.
Key points from the report include:
- Despite near-record peak demand in summer 2024, ERCOT issued fewer energy conservation appeals than in previous years, signaling the improved stability of the grid thanks to energy storage.
- Energy storage helped reduce real-time power prices by $31/MWh in 2024, with even larger reductions during peak demand months like August, saving consumers significantly.
- Energy storage also drove down ancillary service prices, which saw a drastic decrease from $30-$125/MWh in 2023 to under $5/MWh in 2024.
- The integration of energy storage into ERCOT’s grid has been essential for handling rapid load growth, weather-related stress, and maintaining grid reliability while keeping costs low.
The ACP highlighted that Texas’ energy storage growth has helped meet the state’s increasing demand, with storage now providing about 80% of ERCOT’s regulation down services and nearly 50% of contingency reserve services. As energy storage capacity expands further, it is expected to continue providing substantial benefits in price stability and grid resilience, positioning Texas as a model for other U.S. regions facing growing energy demand.