What makes ERCOT a unique environment for wind + storage in the U.S.?
DFF: If you are going to examine opportunities, you go where those opportunities are, and the spectacular growth of wind in Texas means that, if and when we are going to see energy storage solving some sort of challenge related to integrating large quantities of wind, we are going to see it here first.
HD: Texas is the #1 wind state in the U.S. with more than 22,000 megawatts of wind capacity installed. In 2016, 15 percent of all the energy consumed in ERCOT was generated from wind, and we are seeing a healthy growth of wind energy in ERCOT with more than 30,000 megawatts of wind capacity in the interconnection requests pipeline. Already, several projects in the territory, like Texas Waves from E.ON, have begun operating wind + storage systems.
DFF: No doubt that Texas is the place to look, but we should be careful to not develop tunnel vision - opportunities may emerge across the U.S. as it is unique confluences of regulation, technology, and market dynamics are what drive new business models.