Connect with us

Hi, what are you looking for?



Oncor Aiming To Invest $5.2 Billion Into Energy Storage — Will It Be Allowed?

OncorThe Texas-based utility company Oncor is looking to invest several billion dollars (at least) into energy storage systems to back up its transmission and distribution network, as per recent reports. But will the company be granted approval for such a stupendous and potentially industry-changing move?

To be specific — Oncor will reportedly be seeking state regulatory approval for up to $5.2 billion in grid-connected batteries. These batteries, which would range greatly in size, would be spread out across the utility’s service territory, not concentrated in one or two locations. If approved, deployment will begin in 2018.

There may, of course, be pushback against the approval of the plan from the power generation utilities in Texas — as they currently “hold privileges in supplying energy and power to the state’s grid under Texas’ competitive energy regime,” as Greentech Media notes.

Much of the reason for Oncor’s bet on batteries is reportedly down to the fact that battery prices are expected to fall significantly over the next few years — thereby being a cheaper means of ensuring grid stability, and lowering the occurrence of power outages, rather than larger-scale renovations of the state’s infrastructure. Supposedly, this would allow for the lowering of electric bills (we’ll have to wait and see on that count, of course…).


Greentech Media provides more:

Oncor hired the Brattle Group to analyze the impact of $5.2 billion invested in distributed, utility-controlled batteries. The Boston-based consulting group reported that ERCOT could see positive impacts from up to 5 GW of “grid-integrated, distributed electricity storage,” based on the presumption that battery prices will fall to $350 per kW-hour, about half the cost of the cheapest lithium-ion batteries available today. At those prices, Oncor’s distributed storage fleet could drive average Texas residential power bills down by 34 cents to $179.66 a month, according to the report.

Oncor’s plan represents one of the biggest potential energy storage procurement opportunities in the country — if it actually comes to pass. As noted in the Dallas Morning News piece, Oncor will almost certainly face formidable opposition from state legislators and energy regulators.

Very interesting — yet another major move being made in the battery industry. Yet another reason that the next few years should prove interesting.

A final note: Oncor is reportedly in talks with Tesla (and a number of other manufacturers) about the sourcing batteries.


Is This Company Set To Monopolize A Critical Energy Storage Sub-Sector?

Living off the Grid — Good Idea?

Image Credit: Oncor

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.


You May Also Like

Clean Power

America is a bifurcated country. Half the people don’t want anything to change — ever — while the other half want everything to change,...

Clean Power

The massive new SunZia wind energy transmission line is closing in on the finish line, ESG or not.

Fossil Fuels

A study published by the University of Texas finds that regulating methane pollution from oil and gas sites in Texas could create as many...

Autonomous Vehicles

Cruise has slowly been expanding its network of robotaxis and their availability in certain markets. Though, it’s been a long time since the company...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.