Distributed storage could save Texas $344 million per year
Interesting story about how batteries could reduce the need for power plants to serve peak demand.
Distributed storage could save Texas $344 million per year by deferring transmission and distribution costs
An estimated 20% of transmission and distribution investments in Texas are designed to meet load growth, and could largely be deferred by adding distributed battery storage.
That’s a key finding of a report from the Texas Advanced Energy Business Alliance (TAEBA), which pegged the annual savings possible in Texas from this “non-wires solution” at $344 million per year.
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Demand Side Analytics derived its estimate that 20% of Texas transmission and distribution expenditures are due to load growth largely based on estimates made by utilities in five other states; those estimates ranged from 9% to 32%. Because Texas is growing faster than most other states, the report said, the share of growth-related investments in Texas is likely to be at the high end of that range.
A key insight of the study is the relationship between the growth rate in peak demand, and the T&D deferral period from reducing peak demand. “For example, if peak loads are growing at a 2% annual rate and enough DERs are introduced to shave peak demand by 20%, it is possible to defer infrastructure expansion for 9.2 years, after taking into account compound growth,” the report said.
Looking at recent annual growth in peak demand across ERCOT zones — zones established by Texas grid operator ERCOT — the study found most growth rates in the range of 1% to 3%.
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