A new analysis from Aurora Energy Research suggests that deploying 4 gigawatts (GW) of battery storage across the Central U.S. could deliver more than $7 billion in energy cost savings over the next two decades, while also strengthening grid reliability in a region facing some of the nation’s fastest-growing power demand.
The study, commissioned by the American Clean Power Association, focuses on the Southwest Power Pool (SPP). SPP is projected to see the largest percentage increase in peak demand over the next decade, driven by new industrial loads, population growth, and electrification. The region already has one of the highest shares of renewable generation in the country, largely from wind power, but currently operates less than 1 GW of grid-scale storage.
According to the report, expanding storage capacity in SPP could:
- Reduce evening price spikes by more than 80% through 2035.
- Enable the cost-effective deployment of more than 4 GW of storage within the next decade.
- Provide at least $2.2 billion in consumer and business energy savings over the next 10 years, and $7 billion over twenty years.
The findings align with experience from other markets, where battery systems have been used to smooth demand peaks, support thermal plant efficiency, and provide rapid-response reserves.
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