New Report: Battery Storage Key to Strengthening Reliability and Lowering Energy Costs Across Midwest and Central U.S.

A new report from Aurora Energy Research, commissioned by the American Clean Power Association (ACP), finds that the deployment of 10 GW of battery storage— enough to power 8 million homes during peak demand —across the Midwestern and Central U.S. could result in $25 billion in energy cost savings for American consumers, while significantly boosting reliability for the region.  

A 500% increase in battery storage by 2035 in the Midcontinent Independent System Operator (MISO) territory—which serves 45 million consumers—will be needed to maintain grid reliability as demand grows. During this time, MISO is expecting a significant increase in demand for electricity, which will place additional strain on energy generation infrastructure and transmission networks. 

As noted in the report, battery storage has the unique ability to capture excess power and deliver it to the grid when it is needed most, as well as its ability to provide instantaneous dispatchable power, making the technology a natural complement to both renewables and thermal power plants. 

“As power demand surges, battery storage is one of the fastest and most effective ways to strengthen reliability and lower electricity bills,” said Noah Roberts, ACP Vice President of Energy Storage. “Grid batteries deliver massive cost savings for families and businesses, while ensuring that the grid delivers power when it’sneeded most. With more than $25 billion in energy savings at stake, this is a generational opportunity for the Midwest to secure a more reliable and affordable energy future.” 

If MISO and state policymakers harness the potential of energy storage: 

• More than 10 GW of battery storage could be economically and quickly deployed over the next decade to meet rising demand for power and acute grid reliability needs. 

• States in the MISO region could generate more than $4.5 billion in energy cost savings over the next decade, and more than $25 billion over the next two decades. 

• Energy storage resources could cut evening energy price spikes by more than 60% between now and 2035. 

This summer, the MISO territory saw their capacity prices jump over 2,000%. If energy storage in the MISO electricity market is not built, the report’s modeling shows that peak electricity prices for consumers will continue to soar. Additionally, without batteries, the region faces limited options to maintain reliability. The report highlights how other markets have shown that battery storage benefits reliability by dispatching at times of highest system stress, while also freeing up thermal generation to operate as base power more efficiently.  

There are hundreds of energy storage projects in the MISO project queue, working through their lengthy interconnection and permitting process. These projects represent billions of dollars in economic investment, thousands of jobs, and billions of dollars in energy cost savings. Policymakers can act now to help deploy these projects, investing in future energy security and affordability. 

* MISO is the largest regional transmission organization (RTO) in the U.S. stretching across Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, North Dakota, South Dakota, Texas, Wisconsin, and the Canadian province of Manitoba. 

American Clean Power Association | cleanpower.org