Texas Hill Country faces criticism after surge in battery energy storage projects - San Antonio Business Journal

Oct 28, 2024

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As the energy demand in Texas continues to grow, the Hill Country is becoming a focal point for the battery storage industry.

Battery energy storage sites are becoming a booming industry across Texas, and the nearby Hill Country is proving to be a key part of that growth.

About 15 miles northwest of Boerne, an 8-acre site near Comfort is being developed by Albany, New York-based Key Capture Energy. The company is working on a new battery energy storage system site that was proposed over the summer. When complete, the site will store 100 megawatts of energy, which can be used by the Electric Reliability Council of Texas' electrical grid supporting the state and community during times of peak demand.

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Recently, Kendall County commissioners voted to establish an agreement with Kerr County to assert more control over development of storage sites in the two counties, including any future developments near Comfort. The move comes after months of public outcry during Kendall County meetings over concerns about potential noise and fire safety issues related to the site.

The meeting, which took place Oct. 19, resulted in the commissioners court passing a resolution urging the Texas Commission on Environmental Quality to reject any permits for proposed battery energy storage system facilities in the county.

Commissioners are also considering forming a partnership with Kerr County called the Hill Country Energy Commission Sub-Regional Planning Commission. This committee would allow both counties to work together and interact with state agencies to protect the health and safety of their communities under Texas law.

“This is very real, and it can be used very effectively,” said Waller County Judge Trey Duhon during the meeting.

Duhon played a key role in creating a similar committee that stopped the development of a massive infrastructure project in Waller County called the Trans-Texas Corridor.

“Any county or any two cities ... that are dealing with a state agency, this is an effective way to get them to come to the table and work with the local communities, rather than just stamp something and go down the road," Duhon added.

The average storage site includes rows of lithium-ion batteries that store electrical energy usually from natural sources, such as wind or solar power. The storage occurs at times of low demand so that the energy can be utilized later, specifically during times of peak demand.

Developers behind the storage sites assert they select locations for the energy storage projects based on concerns pertaining to transmission line congestion across the Hill Country. This has proven to be a rising problem as energy demand increases with population growth in these areas. Sites such as Key Capture Energy's battery energy storage system facility are an attempt to combat outages. Operators are currently applying to add 152,000 megawatts of battery storage to the statewide grid.

Despite the disapproval, it seems as though the development of battery energy storage sites in the Hill Country is just beginning, as southeast San Antonio is set to become home to the largest stand-alone site in Texas.

Together, CPS Energy and the California-based Eolian L.P. are currently building the 400-megawatt site. When finished, the project will not only be the largest stand-alone site in Texas, but also among the largest in the world. Additionally, it will be the first battery operation that can provide power for more than four hours at a time.

Near Leon Creek Power Plant in Southwest San Antonio, CPS Energy and Eolian are developing another site that will add 200 megawatts of capacity in this area.

“These project locations were carefully chosen years ago to actually reduce the burden on the transmission system and enhance overall market operations by providing resiliency and reliability within load pockets and adjacent to retiring thermal generating units while reducing congestion on key transmission pathways," Aaron Zubaty, Eolian CEO said in a release.

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