Distributed Energy Development in Texas ERCOT Competitive Markets
A look at 2023 distributed energy activity across the CenterPoint and Oncor utility territories.
Gas Generation
Diesel Generation
Battery Storage
Solar
Approximately 95 MW of commercial and industrial distributed energy development was initiated in Texas competitive retail electricity markets during 2023.
CenterPoint and Oncor accounted for the majority of the reported activity. Their development profiles illustrate the strong role of dispatchable generation and the emerging opportunity for battery energy storage.
01
Distributed Energy Development Across ERCOT
~95 MW
Reported Development Initiated in 2023
43+ MW
CenterPoint Territory Installations
47+ MW
Oncor Territory Installations
Development included natural gas and diesel systems, solar installations, and batteries. The reported technology mix varied noticeably between the two territories.
02
CenterPoint Territory: Reliability Generation Dominates
Natural Gas
Diesel
Solar
Dispatchable reliability systems represented more than 95% of reported additions in CenterPoint territory. Behind-the-meter battery installations were minimal, although additional storage projects were awaiting interconnection.
03
Oncor Territory: A More Diverse Technology Mix
In Oncor territory, dispatchable reliability systems accounted for approximately two-thirds of development. Battery storage had a more established presence than in CenterPoint territory.
04
What the 2023 Results Suggest
The development mix was overwhelmingly weighted toward gas and diesel reliability systems.
Conventional reliability generation remained important, but batteries represented a meaningful share of additions.
Storage projects in the interconnection process suggested potential for additional BESS development.
Gas and diesel generation led reported 2023 activity, while battery storage showed the potential for further expansion.
