What's Happening?
The Midcontinent Independent System Operator (MISO) could potentially save $27 billion in system costs by 2035 through the integration of 11 gigawatts (GW) of battery storage, according to a report by Aurora Energy Research for the American Clean Power Association. The report highlights that these batteries would store low-cost, excess electricity and deliver it during peak demand periods, significantly reducing costs. Currently, MISO has about 125 megawatts (MW) of battery storage, with projections to reach nearly 1 GW by next spring. The report also notes that without additional battery storage, average wholesale power prices could increase by $1.40 per megawatt-hour (MWh) by 2035, adding approximately $1.2 billion to electricity costs. MISO operates the electric grid and wholesale power markets across 15 U.S. states and Manitoba, Canada.
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Why It's Important?
The integration of battery storage within MISO's grid is crucial for enhancing grid stability and reducing electricity costs. As the demand for renewable energy sources rises and thermal assets retire, battery storage offers a viable solution to manage energy supply efficiently. The report underscores the economic benefits of battery storage, including the potential to lower peak power prices and reduce reliance on gas-fired power. This development aligns with federal clean energy initiatives and tax credits, promoting a shift towards sustainable energy solutions. Stakeholders in the energy sector, including consumers and renewable energy companies, stand to benefit from reduced costs and increased grid reliability.
What's Next?
MISO is expected to continue expanding its battery storage capacity, with significant projects in the interconnection queue, including 60 GW of standalone storage, 175 GW of solar, and 42 GW of wind. The ongoing development of battery storage infrastructure will likely attract further investment and innovation in the renewable energy sector. Additionally, the extension of federal tax credits for storage facilities will support this growth, despite the phase-out of wind and solar tax credits. Stakeholders will be closely monitoring the implementation of these projects and their impact on energy prices and grid stability.
