Houston Chronicle by L.M. Sixel Feb. 5, 2020
When state lawmakers deregulated the power business two decades ago, they divided the industry into two sectors with distinct duties: Generators could make and sell electricity and regulated utilities could transmit and distribute electricity. But the utilities, whose profits are capped by regulators, want access to a new business opportunity — battery storage.
Batteries are on the cusp of transforming the Texas power grid by making intermittent power sources such as wind and solar into a supply as dependable as natural gas. Demand for battery storage has been driven by rapidly falling prices and more efficient technology, making it easier to store power for use when wind isn’t blowing or sun isn’t shining.
Utilities want to invest in the lucrative market, saying batteries can boost grid reliability, reduce transmission line congestion and prevent construction of new transmission lines.
But power generators are fighting to keep utilities out, arguing that energy storage is considered generation under state law that makes battery investments off limits to investor-owned utilities that could profit by storing cheap power and selling it when prices rise. And state regulators are loathe to step in, rejecting a request two years ago from AEP Texas North to build two battery storage sites and punting a more-recent request by CenterPoint Energy to add battery storage capability.
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