US: 5GW of new storage could save SPP region US$2.2 billion by 2035

AI generated summary

A report by the American Clean Power Association (ACP) and Aurora Energy Research reveals that the Southwest Power Pool (SPP) is expected to see the highest peak load growth among Regional Transmission Organizations (RTOs) over the next decade. The study emphasizes the need for flexible energy resources, particularly battery storage, to address the anticipated increase in electricity demand, which could reach approximately 69GW by 2035. The deployment of around 5GW of energy storage between 2025 and 2035 could save the region over $2.2 billion, while the absence of such storage could lead to significantly higher peak electricity prices and increased system costs.

The report also highlights the challenges faced by energy storage projects in the SPP region, including lengthy permitting processes and regulatory hurdles. To maximize the benefits of energy storage, the report recommends policy changes such as accelerating interconnection, reforming market rules, and simplifying permitting processes. These changes aim to facilitate quicker deployment of grid-scale batteries, which are essential for enhancing reliability and meeting growing energy demands. Recent developments in energy storage projects in the SPP area underscore the urgency of addressing these barriers to ensure a more resilient and cost-effective energy future.