Fact Sheet

Energy Storage Is Key to Grid Reliability and Energy Cost Savings in SPP

A new report by Aurora Research, commissioned by the American Clean Power Association, shows that deploying 5 gigawatts of energy storage in the Central and Southern United States by 2035 is crucial for ensuring grid reliability and lowering costs. The report finds that this moderate investment could save the region over $2.2 billion by 2035 by stabilizing electricity prices.

Without storage, modeling shows that peak electricity prices could spike dramatically, reaching up to seven times higher than with battery deployment. Energy storage helps prevent these price surges by charging when electricity is cheap and abundant (often during the day with solar generation) and discharging during high-demand periods in the evening.

While hundreds of battery projects are in development, slow approval processes and regulatory barriers are causing significant delays. Streamlining interconnection, reforming market rules, and clarifying state-level permitting are necessary to realize the full economic and reliability benefits of energy storage.

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