How solar and storage are changing ERCOT

Texas may be known as the center of the U.S. oil industry, but the state is also at the forefront of the energy transition.

Over the past two years, ERCOT has seen substantial growth in solar generation and battery storage capacity. And that influx is changing not just where the state’s electricity comes from, but also reshaping when and how power is delivered across the grid.

Between the summers of 2023 and 2024, solar capacity increased by eight gigawatts and battery capacity increased by four GW. “They are significantly and dramatically changing the market dynamics,” said Keith Collins, vice president of ERCOT’s commercial operations, in a recent interview on the With Great Power podcast.

ERCOT’s unique market design has made Texas a proving ground for renewable energy and storage. Unlike other regions in the U.S., ERCOT operates an energy-only market, which relies on price signals during scarcity periods to drive investment in new generation. And increasingly, that new generation is renewable.

The impact of this rapid deployment is driving down the cost of electricity. In 2023, Collins explained, the state had a very hot summer with very high pricing. But by the following summer, when solar and storage capacity jumped, prices decreased by almost 70%. Although demand was not quite as high as in 2023, 2024 “was still one of the hottest summers on record” in Texas,” Collins added. “What was behind that price drop was this significant increase in new solar generation and paired with the storage.”

For the full conversation with Keith Collins, listen to his interview on season 4 of With Great Power here.

With Great Power is a show about the people building the future grid, today. It’s a co-production of GridX and Latitude Studios. Subscribe on Apple, Spotify, or anywhere you get your shows.

Read the original article from Latitude Media here.