Texas battery rush: Oil state's power woes fuel energy storage boom


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Texas Battery Storage Investment Boom draws BlackRock, SK, and UBS, leveraging ERCOT price volatility, renewable energy growth, and utility-scale energy storage arbitrage to enhance grid reliability, resilience, and double-digit returns across high-demand nodes.

 

Key Points

Texas sees a rush into battery storage, using ERCOT price spreads to bolster grid reliability and earn about 20% returns.

✅ Investors exploit price volatility, peak-demand spreads.

✅ Utility-scale storage enhances ERCOT reliability.

✅ Top players: BlackRock, SK E&S, UBS; 700 MW deals.

 

BlackRock, Korea's SK, Switzerland's UBS and other companies are chasing an investment boom in battery storage plants in Texas, lured by the prospect of earning double-digit returns from the power grid problems plaguing the state, according to project owners, developers and suppliers.

Projects coming online are generating returns of around 20%, compared with single digit returns for solar and wind projects, according to Rhett Bennett, CEO of Black Mountain Energy Storage, one of the top developers in the state.

"Resolving grid issues with utility-scale energy storage is probably the hottest thing out there,” he said.

The rapid expansion of battery storage could help, through efforts like a virtual power plant initiative in Texas, prevent a repeat of the February 2021 ice storm and grid collapse which killed 246 people and left millions of Texans without power for days.

The battery rush also puts the Republican-controlled state at the forefront of President Joe Biden's push to expand renewable energy use.

Power prices in Texas can swing from highs of about $90 per megawatt hour (MWh) on a normal summer day to nearly $3,000 per MWh when demand surges on a day with less wind power, a dynamic tied to wind curtailment on the Texas grid according to a simulation by the federal government's U.S. Energy Information Administration.

That volatility, a product of demand and higher reliance on intermittent wind and solar energy, has fueled a rush to install battery plants, aided by falling battery costs, that store electricity when it is cheap and abundant and sell when supplies tighten and prices soar.

Texas last year accounted for 31% of new U.S. grid-scale energy storage, with much of it pairing storage with solar, according to energy research firm Wood Mackenzie, second only to California which has had a state mandate for battery development for a decade.

And Texas is expected to account for nearly a quarter of the U.S. grid-scale storage market over the next five years, a trajectory consistent with record U.S. solar-plus-storage growth noted by analysts, according to Wood Mackenzie projections shared with Reuters.

Developers and energy traders said locations offering the highest returns -- in strapped areas of the grid -- will become increasingly scarce as more storage comes online and, as diversifying resources for better projects suggests, electricity prices stabilize.

Texas lawmakers this week voted to provide new subsidies for natural gas power plants in a bid to shore up reliability. But the legislation also contains provisions that industry groups said could encourage investment in battery storage by supporting 'unlayering' peak demand approaches.

Amid the battery rush, BlackRock acquired developer Jupiter Power from private equity firm EnCap Investments late last year. Korea's SK E&S acquired Key Capture Energy from Vision Ridge Partners in 2021 and UBS bought five Texas projects from Black Mountain last year for a combined 700 megawatts (MW) of energy storage. None of the sales' prices were disclosed.

SK E&S said its acquisition of Key Capture was part of a strategy to invest in U.S. grid resiliency.

"SK E&S views energy storage solutions in Texas and across the U.S. as a core technology that supports a new energy infrastructure system to ensure American homes and businesses have affordable power," the company said in a statement.

 

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Court Sees If Church Solar Panels Break Electricity Monopoly

NC WARN Solar Case tests third-party solar rights as North Carolina Supreme Court reviews Utilities Commission fines over a Greensboro church's rooftop power deal, challenging Duke Energy's monopoly, onsite electricity sales, and potential rate impacts.

 

Key Points

A North Carolina Supreme Court test of third-party solar could weaken Duke Energy's monopoly and change utility rules.

✅ NC Supreme Court weighs Utilities Commission penalty on NC WARN

✅ Case could permit onsite third-party solar sales statewide

✅ Outcome may pressure Duke Energy's monopoly and rates

 

North Carolina's highest court is taking up a case that could force new competition on the state's electricity monopolies.

The state Supreme Court on Tuesday will consider the Utilities Commission's decision to fine clean-energy advocacy group NC WARN for putting solar panels on a Greensboro church's rooftop and then charging it below-market rates for power.

The commission told NC WARN that it was producing electricity illegally and fined the group $60,000. The group said it was acting privately and appealed to the high court.

If the group prevails, it could put new pressure on Duke Energy's monopoly, which has seen an oversubscribed solar solicitation in recent procurements. State regulators say a ruling for NC WARN would allow companies to install solar equipment and sell power on site, shaving away customers and forcing Duke Energy to raise rates on everyone else.

#google#

That's because if NC WARN's deal with Faith Community Church is allowed, the precedent could open the door for others to lure away from Duke Energy, as debates over how solar owners are paid continue, "the customers with the highest profit potential, such as commercial and industrial customers with large energy needs and ample rooftop space," attorney Robert Josey Jr. wrote in a court filing.

Losing those power sales would force the country's No. 2 electricity company to make it up by charging remaining customers more to cover the cost of all of its power plants, transmission lines and repair crews, a dynamic echoed in New England's grid upgrade debates as solar grows, wrote Josey, an attorney for the Public Staff, the state's official utilities consumer advocate.

The dispute is whether NC WARN is producing electricity "for the public," which would mean it's intruding on the territory of the publicly regulated monopoly utility, or whether the move was allowed because it was a private power deal with the church alone.

 

NC WARN installed the church's power panels in 2015 as part of what it described as a test case, amid wider debates like Nova Scotia's delayed solar charge for customers, challenging Duke Energy's monopoly position to generate and sell electricity.

North Carolina was one of nine states that as of last year explicitly disallowed residential customers from buying electricity generated by solar panels on their roof from a third party that owns the system, even as Maryland opens solar subscriptions more broadly, according to the North Carolina Clean Energy Technology Center. State law allows purchased or leased solar panels, but not payments simply for the power they generate.

NC WARN's goals included "reducing the effects of Duke Energy's monopoly control that has such negative impacts on power bills, clean air and water, and climate change," the church's pastor, Rev. Nelson Johnson, said in a statement the same day the clean-energy group asked state regulators to clear the plan.

Instead, the North Carolina Utilities Commission ruled the arrangement violated the state's system of legal electricity monopolies and hit the group with nearly $60,000 in fines, which would be suspended if the church's payments were refunded with interest and the solar equipment donated. The group has set aside the money and will donate the gear if it loses the Supreme Court case, NC WARN Executive Director Jim Warren said.

NC WARN's three-year agreement saw the group mount a rooftop solar array for which the church would pay about half the average retail electricity price, state officials said. The agreement states plainly that it is not a contract for the sale or lease of the $20,000 solar system, the church never owns the panels, and the low electricity price means its payback for the equipment would take 60 years, Josey wrote.

"Clearly, the only thing of value (the church) is obtaining for its payments under this agreement is the electricity created," he wrote.

In court filings, the group's attorneys have stuck to the argument that NC WARN isn't selling to the public because the deal involved a single customer only.

The deal "is not open to any other member of the public ... A private, bargained-for contract under which only one party receives electricity is not a sale of electricity 'to or for the public,' " attorney Matthew Quinn wrote to the court.

 

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Wind Turbine Operations and Maintenance Industry Detailed Analysis and Forecast by 2025

Wind Turbine Operations and Maintenance Market is expanding as offshore and onshore renewables scale, driven by aging turbines, investment, UAV inspections, and predictive O&M services, despite skills shortages and rising logistics costs.

 

Key Points

Sector delivering inspection, repair, and predictive services to keep wind assets reliable onshore and offshore.

✅ Aging turbines and investor funding drive service demand

✅ UAV inspections and predictive analytics cut downtime

✅ Offshore growth offsets skills and logistics constraints

 

Wind turbines are capable of producing vast amounts of electricity at competitive prices, provided they are efficiently maintained and operated. Being a cleaner, greener source of energy, wind energy is also more reliable than other sources of power generation, with growth despite COVID-19 recorded across markets. Therefore, the demand for wind energy is slated to soar over the next few years, fuelling the growth of the global market for wind turbine operations and maintenance. By application, offshore and onshore wind turbine operations and maintenance are the two major segments of the market.

 

Global Wind Turbine Operations and Maintenance Market: Key Trends

The rising number of aging wind turbines emerges as a considerable potential for the growth of the market. The increasing downpour of funds from financial institutions and public and private investors has also been playing a significant role in the expansion of the market, with interest also flowing toward wave and tidal energy technologies that inform O&M practices. On the other hand, insufficient number of skilled personnel, coupled with increasing costs of logistics, remains a key concern restricting the growth of the market. However, the growing demand for offshore wind turbines across the globe is likely to materialize into fresh opportunities.

 

Global Wind Turbine Operations and Maintenance Market: Market Potential

A number of market players have been offering diverse services with a view to make a mark in the global market for wind turbine operations and maintenance. For instance, Scotland-based SgurrEnergy announced the provision of unmanned aerial vehicles (UAVs), commonly known as drones, as a part of its inspection services. Detailed and accurate assessments of wind turbines can be obtained through these drones, which are fitted with cameras, with four times quicker inspections than traditional methods, claims the company. This new approach has not only reduced downtime, but also has prevented the risks faced by inspection personnel.

The increasing number of approvals and new projects is preparing the ground for a rising demand for wind turbine operations and maintenance. In March 2017, for example, the Scottish government approved the installation of eight 6-megawatt wind turbines off the coast of Aberdeen, towards the northeast. The state of Maryland in the U.S. will witness the installation of a new offshore wind plant, encouraging greater adoption of wind energy in the country. The U.K., a leader in UK offshore wind deployment, has also been keeping pace with the developments, with the installation of a 400-MW offshore wind farm, off the Sussex coast throughout 2017. The Rampion project will be developed by E.on, who has partnered with Canada-based Enbridge Inc. and the UK Green Investment Bank plc.

 

Global Wind Turbine Operations and Maintenance Market: Regional Outlook

Based on geography, the global market for wind turbine operations and maintenance has been segmented into Asia Pacific, Europe, North America, and Rest of the World (RoW). Countries such as India, China, Spain, France, Germany, Scotland, and Brazil are some of the prominent users of wind energy and are therefore likely to account for a considerable share in the market. In the U.S., favorable government policies are backing the growth of the market, though analyses note that a prolonged solar ITC extension could pressure wind competitiveness. For instance, in 2013, a legislation that permits energy companies to transfer the costs of offshore wind credits to ratepayers was approved. Asia Pacific is a market with vast potential, with India and China being major contributors aiding the expansion of the market.

 

Global Wind Turbine Operations and Maintenance Market: Competitive Analysis

Some of the major companies operating in the global market for wind turbine operations and maintenance are Gamesa Corporacion Tecnologica, Xinjiang Goldwind Science & Technologies, Vestas Wind Systems A/S, Upwind Solutions, Inc, GE Wind Turbine, Guodian United Power Technology Company Ltd., Nordex SE, Enercon GmbH, Siemens Wind Power GmbH, and Suzlon Group. A number of firms have been focusing on mergers and acquisitions to extend their presence across new regions.

 

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25.5% Of US Electricity Coming From Renewable Energy

US Renewable Energy Growth drives the US electricity mix as wind, solar, and hydropower rise while coal, natural gas, and nuclear decline, boosting market share month over month and year over year across the grid.

 

Key Points

US Renewable Energy Growth tracks rising wind, solar, and hydro shares in the mix as coal, gas, and nuclear decline.

✅ Wind and solar surpass nuclear in April share

✅ Renewables reach 29.3% of US electricity in April

✅ Coal and natural gas shares trend lower since 2020

 

Electricity generated by renewable energy sources continues to grow month over month and year over year in the United States. In April 2022, the share of US electricity coming from renewable energy was up to 29.3%, surpassing a record April level reported previously in national data. That was up from 24.8% in April 2020 and 25.7% in April 2021.

Looking at the first four months of the year, renewables provided 25.5% of US electricity, and were the second-most U.S. source in 2020 as well, while the figure for January–April 2020 was 21.7% and the figure for January–April 2021 was 22.5%.

Coal power (20.2% of US electricity) was down year over year in this time period (from 22% in January–April 2021), even as renewables surpassed coal in 2022 nationwide, but is admittedly still a bit higher than it was in January–April 2020 (16.8%).

Electricity from natural gas is also down year over year, but only very slightly (34.7% for both years). Though, it has dropped significantly since January–April 2020 (39.6%).

Electricity from nuclear power continued to take a steady, step-by-step tumble.

Wind & Solar Power Growth Strong
As reported earlier, April was the first month that wind and solar power provided more electricity than nuclear across the United States. Wind and solar power provided 21% of US electricity, while nuclear power provided 17.8% of US electricity (coal, incidentally, also provided 17.8% of US electricity, but wind and solar had provided more electricity than coal in some previous months as well).

Wind and solar power’s combined market share for the first four months of the year was up from just 14.6% in 2020 and 18.4% in 2021.

Looking at their growth year over year, you can see strong and continuous expansion of solar-provided electricity and wind-provided electricity, amid favorable government plans that have supported deployment.

Solar grew from 2.9% in January–April 2020 to 3.6%in January–April 2021 to, eventually, 4.4% in January–April 2022, with solar's 2022 share rising to 4.7% for the full year. Wind rose from 9.2% to 10.3% to 12.2%.

Together, wind and solar were up from 12.1% in January–April 2020 to 13.9% in January–April 2021, reflecting a surge in wind power within the U.S. electricity mix over this period, to 16.7% January–April 2022.

Hydropower (6.5%) is holding approximately the same position as the same period in 2021 (6.5%), but it is down a significant chunk from April 2020 (8.2%).

 

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Germany to Exempt Electric Cars from Vehicle Tax Until 2035

Germany is extending its vehicle tax exemption for electric cars until 2035, a federal move aimed at boosting EV sales, supporting the auto industry, and advancing the country’s transition to cleaner, more sustainable transportation.

 

Why is Germany Exempting EVs from Vehicle Tax Until 2035?

Germany is exempting electric vehicles from vehicle tax until 2035 to boost EV adoption, support its auto industry, and meet national climate targets.

✅ Encourages consumers to buy zero-emission cars

✅ Protects jobs in the automotive sector

✅ Advances Germany’s clean energy transition

Germany’s federal government has confirmed plans to extend the country’s vehicle tax exemption for electric cars until 2035, as part of a renewed push to accelerate the nation’s e-mobility transition and support its struggling automotive industry. The move, announced by Finance Minister Lars Klingbeil, comes just weeks before the existing exemption was set to expire.

“In order to get many more electric cars on the road in the coming years, we need to provide the right incentives now,” Klingbeil told the German Press Agency (DPA). “That is why we will continue to exempt electric cars from vehicle tax.”

Under the proposed law, the exemption will apply to new fully electric vehicles registered until December 31, 2030, with benefits lasting until the end of 2035. According to the Finance Ministry, the measure aims to “provide an incentive for the early purchase of a purely electric vehicle.” While popular among consumers and automakers, the plan is expected to cost the federal budget several hundred million euros in lost revenue.

Without the extension, the tax relief for new battery-electric vehicles (BEVs) would have ended on January 1, 2026, creating uncertainty for automakers and potential buyers. The urgency to pass the new legislation reflects the government’s goal to maintain Germany’s momentum toward electrification, even as the age of electric cars accelerates amid economic headwinds and fierce international competition.

The exemption’s renewal was originally included in the coalition agreement between the Christian Democratic Union (CDU), the Christian Social Union (CSU), and the Social Democratic Party (SPD). It follows two other measures from the government’s “investment booster” package—raising the maximum gross price for EV tax incentives to €100,000 and allowing special depreciation for electric vehicles. However, the vehicle tax measure was previously in jeopardy due to Germany’s tight fiscal situation. The Finance Ministry had cautioned that every proposal in the coalition deal was “subject to financing,” and a plan to end EV subsidies led to speculation that the EV tax break could be dropped altogether.

Klingbeil’s announcement coincides with an upcoming “automotive dialogue” summit at the Chancellery, hosted by Chancellor Friedrich Merz. The meeting will bring together representatives from federal ministries, regional governments, automakers advancing initiatives such as Daimler’s electrification plan across their portfolios, and trade unions to address both domestic and international challenges facing Germany’s car industry. Topics will include slowing EV sales growth in China, the ongoing tariff dispute with the United States, where EPA emissions rules are expected to boost EV sales, and strategies for strengthening Germany’s global competitiveness.

“We must now put together a strong package to lead the German automotive industry into the future and secure jobs,” Klingbeil said. “We want the best cars to continue to be built in Germany. Everyone knows that the future is electric.”

The government is also expected to revisit a proposed program to help low- and middle-income households access electric cars, addressing affordability concerns that persist across markets, modelled on France’s “social leasing” initiative. Though included in the coalition agreement, progress on that program has stalled, and few details have emerged since its announcement.

Germany’s latest tax policy move signals renewed confidence in its electric vehicle transition, despite budget constraints and a turbulent global market, as the 10-year EV outlook points to most cars being electric worldwide. Extending the exemption until 2035 sends a clear message to consumers and manufacturers alike: the country remains committed to building its clean transport future—one electric car at a time.

 

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How France aims to discourage buying of Chinese EVs

France EV Bonus Eligibility Rules prioritize lifecycle carbon footprint, manufacturing emissions, battery sourcing, and transport impacts, reshaping electric car incentives and excluding many China-made EVs while aiming for WTO-compliant, low-emission industrial policy.

 

Key Points

France's EV bonus rules score lifecycle emissions to favor low-carbon models and limit incentives for China-made EVs.

✅ Scores energy, assembly, transport, and battery criteria

✅ Likely excludes China-made EVs with coal-heavy production

✅ Aims to align incentives with WTO-compliant climate goals

 

France has published new eligibility rules for electric car incentives to exclude EVs made in China, even though carmakers in Europe do not have more affordable rival models on the French market.


WHY IS FRANCE REVISING ITS EV BONUS ELIGIBILITY RULES?
The French government currently offers buyers a cash incentive of between 5,000 and 7,000 euros in cash for eligible models to get more electric cars on the road, at a total cost of 1 billion euros ($1.07 billion) per year.

However, in the absence of cheap European-made EVs, a third of all incentives are going to consumers buying EVs made in China, a French finance ministry source said. The trend has helped spur a Chinese EV push into Europe and a growing competitive gap with domestic producers.

The scheme will be revamped from Dec. 15 to take into account the carbon emitted in a model's manufacturing process.

President Emmanuel Macron and government ministers have made little secret that they want to make sure French state cash is not benefiting Chinese carmakers.


WHAT DO THE NEW RULES DO?
Under the new rules, car models will be scored against government-set thresholds for the amount of energy used to make their materials, in their assembly and transport to market, as well as what type of battery the vehicle has.

Because Chinese industry generally relies heavily on coal-generated electricity, the criteria are likely to put the bonus out of Chinese carmakers' reach.

The government, which is to publish in December the names of models meeting the new standards, says that the criteria are compliant with WTO rules because exemptions are allowed for health and environmental reasons, and similar Canada EV sales regulations are advancing as well.


WILL IT DO ANYTHING?
With Chinese cars estimated to cost 20% less than European-made competitors, the bonus could make a difference for vehicles with a price tag of less than 25,000 euros, amid an accelerating global transition to EVs that is reshaping price expectations.

But French car buyers will have to wait because Stellantis' (STLAM.MI) Slovakia-made e-C3 city car and Renault's (RENA.PA) France-made R5 are not due to hit the market until 2024.

Nonetheless, many EVs made in China will remain competitive even without the cash incentive, reflecting projections that within a decade many drivers could be in EVs.

With a starting price of 30,000 euros, SAIC group's (600104.SS) MG4 will be less expensive than Renault's equivalent Megane compact car, which starts at 38,000 euros - or 33,000 euros with a 5,000-euro incentive.

Since its 46,000-euro starting price is just below the 47,000-euro price threshold for the bonus, Tesla's (TSLA.O) Y model - one of the best selling electric vehicles in France - could in theory also be impacted by the new rules for vehicles made in China.

S&P Global Mobility analyst Lorraine Morard said that even if most Chinese cars are ineligible for the bonus they would probably get 7-8% of France's electric car market next year, even as the EU's EV share continues to rise, instead of 10% otherwise.

 

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Local study to look at how e-trucks might supply future electricity

Electrified Trucking Grid Integration explores vehicle-to-grid (V2G) strategies where rolling batteries backfeed power during peak demand, optimizing charging infrastructure, time-of-use pricing, and IESO market operations for Ontario shippers like Nature Fresh Farms.

 

Key Points

An approach using V2G-enabled electric trucks to support the grid, cut peak costs, and add revenue streams.

✅ Models charging sites, timing, and local grid impacts.

✅ Evaluates V2G backfeed economics and IESO pricing.

✅ Uses Nature Fresh Farms data for logistics and energy.

 

A University of Windsor project will study whether an electrified trucking industry might not only deliver the goods, but help keep the lights on with the timely off-loading of excess electrons from their powerful batteries via vehicle-to-grid approaches now emerging.

The two-year study is being overseen by Environmental Energy Institute director Rupp Carriveau and associate professor Hanna Moah of the Cross-Border Institute in conjunction with the Leamington-based greenhouse grower Nature Fresh Farms.

“The study will look at what happens if we electrified the transport truck fleet in Ontario to different degrees, considering the power demand for truck fleets that would result,” Carriveau said.

“Where trucks would be charging and how that will affect the electricity grid grid coordination in those locations at specific times. We’ll be able to identify peak times on the demand side.

“On the other side, we have to recognize these are rolling batteries. They may be able to backfeed the grid, sell electricity back to prop the grid up in locations it wasn’t able to in the past.”

The national research organization Mathematics of International Technology and Complex Systems (Mitacs) is funding the $160,000 study, and the Independent Electricity Systems Operator, a Crown corporation responsible for operating Ontario’s electricity market, amid an electricity supply crunch that is boosting storage efforts, is also offering support for the project.

Because of the varying electricity prices in the province based on usage, peak demand and even time of year, Carriveau said there could be times where draining off excess truck battery power will be cheaper than the grid, and vehicle-to-building charging models show how those savings can be realized.

“It could offer the truck owner another revenue stream from his asset, and businesses a cheaper electricity alternative in certain circumstances,” he said.

The local greenhouse industry was a natural fit for the study, said Carriveau, based on the amount of work the university does with the sector along with the fact it is both a large consumer and producer of electricity.

The study will be based on assumptions for electric truck capacity and performance because the low number of such vehicles currently on the road, though large electric bus fleets offer operational insights.

How will an electrified trucking industry affect Ontario’s electricity grid? University of Windsor engineering professor Rupp Carriveau is part of a new study on trucks being used to help deliver electricity as well as their products around Ontario. He is shown on campus on Tuesday, July 6, 2021.

How will an electrified trucking industry affect Ontario’s electricity grid? University of Windsor engineering professor Rupp Carriveau is part of a new study on trucks being used to help deliver electricity as well as their products around Ontario. He is shown on campus on Tuesday, July 6, 2021.

Nature Fresh Farms will supply all its data on power use, logistics, utility costs and shipping schedules to determine if switching to an electrified fleet makes sense for the company.

“As an innovative company, we are always thinking, ‘What is next?’, whether its developments in product varieties, technology or sustainability,” said company CEO Peter Quiring. “Green transportation is the next big focus.

“We were given the opportunity to work closely on this project and offer our operations as a case study to see how we can find feasible alternatives, not only for Nature Fresh Farms or even for companies in agriculture, but for every industry that relies on the transportation of their goods.”

Currently, Nature Fresh Farms doesn’t have any electrified trucks. Carriveau said the second phase of the study might actually involve an electric truck in a pilot project.

 

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