Utility-scale batteries can indeed help defer investments in grid infrastructure by addressing key challenges in energy delivery and stability. Here’s how they contribute:
Grid stability management
Batteries provide rapid-response services to stabilize frequency and voltage fluctuations caused by intermittent renewables or sudden power plant outages. Texas’ ERCOT system, for instance, uses utility-scale batteries to release stored energy during gaps in wind/solar generation and prevent instability. Their fast response (milliseconds) reduces the need for traditional fossil-fuel “peaker” plants or grid reinforcements.
Ancillary services and arbitrage
These systems participate in energy markets through:
- Ancillary services: Maintaining grid reliability by balancing supply-demand mismatches
- Energy arbitrage: Storing cheap off-peak renewable energy and discharging during high-demand periods, alleviating congestion on transmission lines.
Grid-forming capabilities
Modern battery inverters can operate in grid-forming mode, actively regulating voltage and frequency without relying on traditional generation assets. This helps integrate renewables while maintaining stability without costly transmission upgrades.
Texas case study
From 2020-2024, Texas expanded utility-scale battery capacity by over 4,100% to 5,707 MW. This growth helps manage renewable intermittency and reduces reliance on physical grid expansion, as batteries can be deployed faster than building new power lines.
By absorbing excess renewable generation and providing on-demand power during constraints, battery storage effectively delays or reduces the need for new substations, transformers, and transmission infrastructure. However, their deployment still requires careful siting and safety protocols to address community concerns.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-utility-scale-batteries-defer-investments-in-grid-infrastructure/
