Texas batteries stabilize power grid during record heat
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In Texas, increased battery storage is helping the power grid manage record electricity demand during a hot summer without asking residents to conserve energy.
Until recently, the Electric Reliability Council of Texas (ERCOT) had to request citizens reduce power usage to avoid outages during peak demand. However, the state has significantly increased its battery capacity, from 857 MW in 2021 to around 21.7 GW in July 2026, and paired it with growing solar energy production.
This combination allows the grid to store solar energy generated during the day and release it in the evening when demand remains high, effectively smoothing out the energy supply curve. On July 22nd, Texas reached a record electricity consumption of 91,308 MW, which the grid handled through a combination of natural gas (48%), solar power (32%), and battery discharge. Batteries reached a peak discharge of 13,256 MW on August 23rd, helping absorb record energy use throughout the summer.
Despite record consumption, electricity prices in Texas have only increased by 2.3% compared to the previous year. Other regions are following suit. California is investing in battery storage through state regulations, while Europe has surpassed 100 GWh of installed battery capacity, with Germany and Spain leading the way. Ukraine is also prioritizing energy storage for national security.
Though this shift benefits consumers, it presents a challenge for energy companies, as increased battery storage reduces peak price opportunities, but ERCOT is implementing new mechanisms to allow them to profit from providing grid services.
