Description
Title: Authorize negotiation and execution of a battery storage agreement with Base Power, Inc., for up to 40 megawatts of electric power capacity from a distribution-scale battery facility portfolio, in an estimated amount of up to $4,080,000 per year, for a term up to 10 years, for a total estimated amount of up to $40,800,000. Funding: $4,080,000 is available in the 2025-2026 Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets.
Summary
The City of Austin is considering a battery storage agreement with Base Power, Inc., which would provide up to 40 megawatts (MW) of electric power capacity from a portfolio of battery facilities over a ten-year term, costing up to $4,080,000 annually. This initiative, funded by the Austin Energy Operating Budget, aims to enhance local battery storage capabilities, contributing to a broader goal of 125 MW outlined in the Austin Energy Resource, Generation, and Climate Protection Plan to 2035. The agreement will allow Base Power to install batteries at residential sites, offering backup power to customers without changing their electric service. This project is significant as it supports renewable energy integration and mitigates wholesale price risks for Austin Energy.