Battery Storage Projects Break Ground Near Houston as Texas Energy Grid Faces New Pressures
As Houston area residents heads into another hurricane season and continues to confront electric grid reliability challenges, utility-scale battery developer GoodPeak has begun construction on two ERCOT-connected battery energy storage projects near Houston. The projects come shortly after CenterPoint Energy announced a proposal to lower electric bills and shift emergency generation resources to support statewide energy needs—moves that reflect a broader focus across the public and private sectors on improving grid resilience.
The two 10-megawatt (2-hour duration) battery systems are expected to be operational by late 2025. According to GoodPeak, the facilities will provide stored electricity during periods of high demand or grid stress, with the goal of increasing system flexibility and stability. The company closed $22 million in construction debt financing with Pathward®, N.A. and BridgePeak Energy Capital, and has also secured equity backing from Current Equity Partners.
“Breaking ground on our first energy storage projects marks a major milestone for GoodPeak in helping to solve Texas’ grid challenges,” said Trent Kososki, Founder and CEO of GoodPeak. “These projects will provide much-needed resilience to the grid, storing excess power during times of low demand and delivering it when it’s needed most.”
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Grid Stability in the Context of Extreme Weather
The announcement follows a series of high-impact weather events that have strained Texas’ power infrastructure in recent years. Most recently, a derecho storm in May 2024 left more than 900,000 customers without power across Southeast Texas. Previous events—such as Winter Storm Uri in 2021 and repeated summer heatwaves—have also raised concerns about the ability of the state’s grid to handle extreme conditions and increased demand.
Energy storage has emerged as one tool to help address these challenges. Battery systems are designed to absorb excess electricity during low-demand periods and discharge it when power supply is constrained, helping to stabilize the grid and reduce volatility.
CenterPoint Proposes Cost Reductions and Resource Reallocation
GoodPeak’s construction start coincides with a CenterPoint Energy proposal presented to the Texas Senate Committee on Business and Commerce earlier this week. The plan calls for the removal of certain emergency generation costs from Houston Electric customer bills and the transfer of 15 large emergency generation units—originally deployed after the 2021 winter storm—to the San Antonio area to support ERCOT’s generation capacity.
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If implemented, the proposal could reduce residential electric bills by up to $2 per month by 2027, according to CenterPoint. The company stated it will not seek revenue or profit from the units for up to two years, positioning the plan as both a customer cost-saving measure and a strategy to help meet near-term energy needs in high-risk areas.
“This plan would not only lower monthly bills immediately, and by as much as $2 by 2027, but it would address the costs paid to date related to large generation units,” said Jason Wells, President and CEO of CenterPoint Energy.
Parallel Responses to a Shared Issue
While the GoodPeak and CenterPoint announcements are not formally linked, they reflect a parallel response to ongoing questions about Texas’ energy infrastructure and how best to prepare for seasonal demand spikes and weather-related disruptions.
“With AI and data centers driving soaring electricity demand, Texas faces major grid challenges,” added P.J. Fielding, Co-Founder of Current Equity Partners. “GoodPeak’s storage projects are crucial for balancing this growth.”
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GoodPeak’s projects represent a longer-term, infrastructure-based approach focused on distributed battery storage. CenterPoint’s proposal is designed to offer more immediate relief through mobile generation assets and rate adjustments. Both strategies are emerging in a regulatory environment shaped by ERCOT’s focus on improving grid reliability and flexibility.
“Our collaboration with GoodPeak exemplifies this approach,” said Shawn Andrews, CEO of BridgePeak. “GoodPeak’s strategy of deploying a distributed network of energy storage ‘shock absorbers’ is the type of forward-thinking solution needed to navigate today’s grid challenges.”
Founded by industry professionals with backgrounds in power development, private equity, and infrastructure, GoodPeak is planning to expand its portfolio in 2025 to include larger projects and potentially integrated renewable generation assets.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
