Solar, battery capacity saved the Texas grid last summer; an uncertain future awaits

Garrett Golding | Source: Federal Reserve Bank of Dallas | Posted 01/15/2025

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Solar electricity generation and utility-scale batteries within the Electric Reliability Council of Texas (ERCOT) power grid set records in summer 2024. On average, solar contributed nearly 25 percent of total power needs during mid-day hours between June 1 and Aug. 31.

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In the summer of 2024, solar energy and utility-scale batteries played a crucial role in meeting power demands within the ERCOT grid in Texas. Solar power contributed nearly 25% of total power needs during mid-day hours, with batteries filling the gap during critical evening hours. However, concerns arise for winter months when peak load shifts to early morning, potentially challenging the current solar-battery capability if thermal power plant outages occur.

Despite the success of solar and battery installations, challenges lie ahead for the ERCOT grid. Forecasts predict accelerated load growth, raising questions about the adequacy of the current generation mix and market design. Market signals for developing sufficient generating capacity are crucial, especially with the expected surge in demand from data center construction and electrification trends. As load continues to rise, new market structures and products are needed to incentivize baseload and peaker plant generation, ensuring reliability in the face of growing energy demands.

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Source Link: https://www.dallasfed.org/research/economics/2025/0114

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Solar, battery capacity saved the Texas grid last summer; an uncertain future awaits

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