Texas Leads in Solar and Battery Storage Expansion on Electric Grid

More solar and battery storage were added to Texas’ grid than any other power source last year

By Arcelia Martin | Inside Climate News

As the renewable energy market in Texas continues to grow and evolve, the state’s electric grid is increasingly incorporating more renewable sources. According to research from the Federal Reserve Bank of Dallas published in January, solar and battery storage installations led the capacity growth in Texas’ electric grid last year.

In 2023, Texas added nearly 1,500 megawatts of battery storage to the grid’s summer-rated capacities. This figure rose significantly to 4,374 megawatts in 2024. Solar power additions followed a similar upward trend, with 4,570 megawatts added in 2023 and almost 9,700 megawatts in 2024.

Texas operates its own isolated energy grid, managed primarily by the Electricity Reliability Council of Texas (ERCOT), which oversees 90 percent of the state’s power load. Traditionally, ERCOT has depended heavily on natural gas; however, renewable sources like wind and solar are increasingly used to meet high demand. In 2024, ERCOT added 3,400 megawatts from natural gas power plants, following a period from 2021 to 2023 when more than 1,000 megawatts of natural gas power were offline.

The growth in solar and battery storage capacity has proved essential for managing the peak demands of Texas summers. Garret Golding, an assistant vice president for energy programs at the Dallas Fed, reported that this increase allowed the grid to handle another hot summer in 2024.

Battery storage is a relatively recent addition to the ERCOT system. One of the first battery storage plants connected to ERCOT was a 50-megawatt facility operated by Enel, located in Kaufman County southeast of Dallas, which began operations in 2021. Enel has since developed 14 battery projects across Texas.

The rising demand for power in Texas—driven by population growth and heavy energy users like data centers, cryptocurrency mining, and artificial intelligence—along with a competitive battery market, is contributing to the increased reliance on storage within ERCOT. Randald Bartlett, a senior director of operations and management for battery energy storage systems at Enel North America, noted that Texas’ permitting processes and development capabilities have made it easier to increase capacity compared to other states.

Previously, there was insufficient data to predict the contributions of battery storage to the grid. However, ERCOT CEO Pablo Vegas explained that the organization has now incorporated battery contributions into its forecasts for future capacity, demand, and reserves. Since 2021, battery storage in the ERCOT grid has nearly doubled each year, reaching almost 10,000 megawatts by the end of 2024. Vegas highlighted the significant impact of battery capacity during “bridge hours,” which occur in the winter mornings before sunrise and evenings after sunset, particularly during peak demand periods.

In the spring of 2024, Texas surpassed California in utility-scale solar installations, increasing from 1,900 megawatts in 2019 to over 20,000 megawatts in 2024. On certain days, solar energy met nearly 50 percent of the state’s peak power demand. This rapid deployment of utility-scale solar began in 2005 when the Texas legislature directed the Public Utility Commission to establish competitive renewable energy zones, which aimed to connect cities to renewable sources in West Texas. Originally intended for wind power, this initiative quickly adapted to include solar due to existing infrastructure, according to Dustin Mulvaney, an environmental studies professor.

As Texas’ grid continues to evolve, ERCOT is planning to upgrade its transmission system from 345-kilovolt lines to 765-kilovolt lines. In 2024, nearly 78 gigawatts of transmission-connected wind, solar, and battery energy storage capacity were added to the grid. By the end of 2025, more than 102 gigawatts of transmission-connected renewable capacity is expected to be installed, as noted in a December ERCOT report.

The increasing demand and renewable energy integration have prompted ERCOT to request the Public Utility Commission consider upgrading the state’s transmission system instead of merely expanding the existing one. Kristi Hobbs, ERCOT’s vice president of system planning and weatherization, indicated that the 765-kV lines would offer substantial economic and reliability benefits. Regardless of the chosen transmission plan, Hobbs emphasized that the projected growth in the coming six years and beyond will necessitate significant public investment.