Texas Clean Energy 2026

Energy storage has rapidly become a cornerstone of Texas’s power market, from peak shaving and ancillary services to grid stability, while creating new and increasingly complex revenue streams. As battery costs decline and load growth rises, Texas is positioned for significant BESS deployment, though developers must navigate evolving ERCOT and PUCT rules and ongoing uncertainty around ancillary service pricing and market design. Financing structures are also evolving: With merchant shrinking, PPAs, tolling agreements, and hybrid contracts are shaping bankability, alongside OB3’s good news. At the same time, FEOC compliance considerations add complexity to project execution. This panel will explore how storage is financed, built, and operated today, what revenue streams are proving durable, and how market, policy, and technology trends will shape the future of storage in Texas.

• Who’s seeing what contracts: PPAs, ESCAs, tiered-revenue sharing, tolling agreements? New financing techniques? What about reserve margin participation? Will data center needs change the market vis-a-vis contracts? What’s happening with merchant getting contracted?
• FEOC, tariffs, and equipment procurement: OB3 was (relatively) kind to storage, but how do developers and EPCs demonstrate compliance? Is final guidance clear and workable?
• RTC+B: How’s that working in practice? Is BESS value captured? What’s the difference in financing/revenue projections for 4-hour BESS vs. 2-hour? Is non-Li Ion storage financeable? How can batteries be operationalized efficiently to make the most revenue?
• Where is BESS being sited today, and what proportions of projects are FTM vs BTM? Is this likely to change given data center BTM usage projections? What about clarity on cost allocation for transmission vs distribution connected batteries? Is low volatility a killer?
• Expectations vs reality: How much storage does TX need? Given the current queue, is this realistic? How does today’s landscape affect forward curves and future storage project bankability? Why are munis not buying storage? What’s real for BOS assets?
• Mitigating risks: With fire, siting, permitting, NIMBYism, changing revenues, how can developers future-proof projects? Are strategies shifting to provide services and energy?