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Study Recommends Streamlined Rules to Deliver $9 Billion in Central U.S. Grid Savings

Policy reforms such as faster interconnection, clearer market signals, simpler permitting would unlock a multi-gigawatt battery pipeline, cutting energy costs by billions, bolstering grid reliability.

A new study said that utility-scale battery storage could reduce energy costs by up to 80% during peak demand in Kansas's power grid.
The newly acquired BESS will be built in two phases in Eastern Oklahoma to support multiple data centres already operational or in development in the area. Image: GridStor

Overview

  • Deploying 4 GW of battery storage in the Central U.S. could lower electricity costs by about $7 billion by 2035, while adding 5 GW in the Southwest Power Pool promises an extra $2.2 billion in savings.
  • Without further storage build-out, peak-hour rates in SPP could climb to around $988 per MWh by 2035, increasing pressure on generation and transmission infrastructure.
  • Although SPP’s interconnection queue holds hundreds of storage projects that could deliver more than 4 GW by 2030, roughly 58% of applications have withdrawn amid long studies and unclear market participation rules.
  • Developers and utilities are advancing some sites—GridStor acquired a 200 MW/800 MWh system, Xcel Energy plans 600 MW by 2030—while local measures such as Harvey County’s moratorium are halting a 200 MW proposal.
  • Aurora and ACP urge regulators to accelerate interconnection processes, reform market accreditation and simplify permitting to translate the queued projects into realized savings and reliability gains.