This story was originally published by Canary Media.
California and Texas are in a new competition for clean energy supremacy: who can boast the highest amount of grid batteries.
Texas, which surpassed California in large-scale solar power capacity last year, is now leading the charge in grid battery construction. The Lone Star state is set to complete 6.4 gigawatts of new grid battery capacity this year, more than double what it had in 2023. This surpasses the 5.2 gigawatts projected to come online in California.
The surge of batteries in both states highlights the growing importance of energy storage in the national electricity system. The U.S. is expected to add 14.3 gigawatts of battery storage this year, representing 23 percent of all new power plant capacity.
While California is still predicted to end the year with more battery capacity than Texas, the pace at which Texas is adding storage indicates it could overtake California soon. This shift underscores Texas’ emergence as a leader in clean power plant development, driven less by climate policy and more by the competitive energy market in the state.
Texas entered the battery storage game more recently than California, as falling battery costs opened up opportunities for developers in the state’s wholesale markets. Developers in Texas have found the process of acquiring land and permits, as well as connecting to the grid, to be more streamlined than in California.
Batteries in Texas have proven their value, aiding the state’s grid during crucial moments like gas shortages, an influx of solar power, and intense heat waves. The state’s competitive market encourages developers to build power plants quickly to capitalize on market fluctuations.
Battery construction in Texas gained momentum in 2020, with developers like Plus Power, Broad Reach Power, and Key Capture Energy leading the way with large-scale projects. Texas now stands as the liveliest grid storage market in the U.S. for 2024.