Dive Brief:
- Oncor is investing $1 million to install six storage batteries across its Dallas grid to test how well the technology can function as back-up power supply during short outages.
- The lithium batteries are designed to store enough electricity to keep three-to-four households-worth of electricity running for about an hour in the event of a power outage. Five of the batteries will be distributed in residential areas, while one will be housed near one of Oncor's power plants.
- The utility is also testing a "microgrid concept" at one of its storage and maintenance facilities. This will be run on a combination of natural gas-fired microturbines, thermal storage and batteries, according to Oncor CEO Bob Shapard.
Dive Insight:
Oncor's foray into battery storage reflects the trend of utilities seeking energy storage solutions that help mitigate the increasing variability of electricity supply. The $1 million investment appears small, but battery storage is still prohibitively expensive on a utility scale. By investing now, Shapard believes Oncor will be well placed for the future.
"The math isn't there yet, but the companies know they all need to get there," said Shapard. He predicted that utilities are "probably about 5 years away" from finding a utility-scale energy storage solution that works well and is cost-effective.
Oncor is moving ahead despite parent company Energy Future Holdings filing for bankruptcy two weeks ago. Oncor wasn't included in Energy Future's filing, however, and Shapard says the company has been developing a battery storage initiative for years.
"You need to be with it," said Shapard. "Or you're going to be left behind."