Development Market Outlook in ERCOT
Carl Fleming, a member of McDermott’s Energy and Project Finance Group and head of its Energy Storage Team, hosted a panel of industry leaders from Vistra, UKA North America and Origis that explored the opportunities and challenges for utility-scale solar and standalone energy storage development in the Energy Reliability Council of Texas (ERCOT). Here are the key takeaways:
1.A huge wave of solar and standalone storage projects is hitting ERCOT. Per recent reports, as of September 2021, developers had more than 100GW of solar, 42GW of utility-scale battery storage, 22GW of wind and 13GW of natural gas in the queue.
2. It’s unclear what the future holds for the market due to transmission congestion, the impact of so much solar going online and its effects on the power price curve, as well as supply chain issues.
3.Transmission congestion is affecting the ability to deliver power from some of the most resource-rich areas. However, ERCOT remains more predictable than certain other markets that have recently announced temporary pauses in processing the transmission pipeline queue.