Texas leads nation in battery storage growth, according to S&P Global

Aug 17, 2023

California Gov. Gavin Newsom, middle, tours a battery storage facility at the Proxima Solar Farm under construction outside Patterson, Calif. California is tops among states, with nearly 5,200 megawatts of battery storage.

Texas led the nation in battery storage growth for the first few months of the year, adding enough utility-scale batteries to power almost 100,000 homes on a hot summer day, according to research and consulting firm S&P Global.

The proliferation of renewable energy and the state's competitive electricity market have attracted battery developers to Texas in recent years. Interest in the state has only grown as the federal government increased its tax incentives for battery storage in last year's Inflation Reduction Act, which also included an expansion of the types of facilities that qualify for the tax credits.

In the first quarter of the year, another nearly 500 megawatts of battery storage was hooked up to the Electric Reliability Council of Texas grid, according to S&P Global, for a total of around 3,285 megawatts of battery storage. State grid operator ERCOT says 1 megawatt can power 200 Texas homes during times of peak electricity demand.

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Of the six major battery projects completed from January through March, four were in Texas. That includes one of the state's largest battery projects, the 190-megawatt Cunningham energy storage facility located near Dallas and owned by Spanish company Acciona Energy.

Across the country a total of 710 megawatts of battery storage was added in the first three months of the year, for a total of nearly 10,800 megawatts of installed battery storage. While Texas saw the most growth, California still tops the list for most capacity with nearly 5,200 megawatts.

While more energy storage projects are planned for Texas this year, researchers at S&P Global expect California to lead the way in the coming months. Irving-based Vistra Energy is slated to open an additional 350-megawatt facility in Moss Landing, Calif., already home to a massive 400-megawatt project.

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