Texas added more battery storage capacity than all other states in the first quarter of 2023. 

The Lone Star State contributed a total of 30.5% of battery storage capacity in the U.S. in the first three months of 2023, driving more growth in the first quarter than other states, according to the latest data from S&P Global Commodity Insights, an energy research and consulting company based in London.

In the first quarter of the year, Texas’ energy grid added nearly 500 megawatts (MW) of battery storage for a total battery capacity of 3,285 MW, according to the energy firm.

In total, the U.S. added more than 700 MW of capacity during the first quarter, an increase of 7% from the end of 2022, said S&P Global Commodity Insights in a recent report based on a compilation of various government filings and data.

The Electric Reliability Council of Texas (ERCOT) claims that one megawatt is enough energy capacity to power up to 200 Texas homes during times of peak electricity demand, according to the Houston Chronicle. By this calculation, ERCOT added enough utility-scale battery storage capacity in Q1 to power 100,000 Texas homes during a peak demand period, such as summer.

Of the six largest energy storage projects completed between January and March 2023, four belonged to ERCOT:

  • Acciona Energy North America’s 190-MW BT Cunningham Storage in Texas
  • Aypa Power Development’s 155.5-MW Wolf Tank Storage facility in Texas
  • Key Capture Energy’s 51.5-MW KCE TX 19 facility in Texas
  • Key Capture Energy’s 51.5-MW KCE TX 21 facility in Texas

The two other projects belonged to the Western Electricity Coordinating Council (WECC):

  • NextEra Energy Resources’ 50-MW Buena Vista Energy Center facility in New Mexico
  • Arizona Public Service’s 50-MW El Sol BESS facility in Arizona

“The ERCOT footprint added 498.6 MW in Q1, or 70.2% of all US additions, followed by the [WECC] with 115 MW added, or 16.2% of total US installations. All other regions installed less than 3% each,” S&P Global Commodity Insights said in the report.

Texas has become an enticing and attractive market for battery developers through a combination of The Lone Star State’s competitive electricity market and recent tax incentives approved by the federal government for battery storage.

Texas is not just a leader in terms of battery storage capacity, the state also generates a robust amount of wind-generated energy. In 2022, Texas led all states in wind-generated electricity, accounting for 26% of overall wind generation, according to the U.S. Energy Information Administration (EIA).

Although Texas has many renewable energy facilities planned and underway throughout the state, the EIA said that residents may not see the benefits of these projects for decades to come.