Denton Municipal Electric (DME) has signed a 200MWh battery energy storage system (BESS) offtake agreement with Jupiter Power to help manage electricity price volatility linked to the ERCOT duck curve, according to recent data from the Electric Reliability Council of Texas (ERCOT).

The Tidwell Prairie energy storage complex, where the BESS will be located, is divided into three 200MW phases, each with its own interconnection agreement. DME's allocation comes from the second phase, contracted through Jupiter Power's subsidiary, Tidwell Prairie IIA, LLC. This phase is scheduled to come online in June 2026, ahead of the preferred connection date set by DME's November 2024 renewable energy RFP.

The first 200MW phase, scheduled for summer 2025, has not yet gone online. The third phase is planned for June 2027, though it still lacks a secured interconnection agreement. Jupiter Power previously raised US$286 million to fund the first phase of Tidwell Prairie and a separate Michigan BESS project.

Jose Gaytan, DME's executive manager of power supply, highlighted the project's role in addressing the duck curve--a phenomenon in grids with high solar penetration, where evening demand spikes as solar output falls. The BESS will charge during the day when prices are low and discharge in the evening, helping shield customers from extreme price swings, which can spike to US$5,000/MWh compared with typical rates of US$20-50/MWh.

The contract also notes that costs could rise if federal incentives under the Inflation Reduction Act are altered, though investment tax credits for energy storage remain available until 2034.

Source: energy-storage.news