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ACCC Warns Solar and Battery Suppliers Amid Surging Home Battery Uptake and Significant Consumer Savings

7 months ago
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ACCC Warns Solar and Battery Suppliers Amid Surging Home Battery Uptake and Significant Consumer Savings

Key Insights

  • Georgia Power has requested approval from the PSC for 9.9GW of new generation resources, including over 3GW of utility-owned battery energy storage systems.

  • The proposed BESS projects, utilizing Tesla Megapacks with LFP chemistry, are deemed cost-effective and crucial for enhancing grid stability and reliability.

  • This significant investment aligns with Georgia's growing role as a domestic battery supply chain hub, supporting both automotive and grid-scale storage manufacturing.

  • The move reflects a broader industry trend towards large-scale BESS deployment, exemplified by Wärtsilä's 68MW system for the Shetland Islands, enhancing grid resilience.

Georgia Power has submitted a request to the Georgia Public Service Commission (PSC) for certification of 9,900MW of new generation resources, a significant portion of which comprises over 3GW of utility-owned battery energy storage systems (BESS). This substantial filing underscores the utility’s strategic response to anticipated load growth and its commitment to enhancing grid reliability and resilience across the state.

The proposed resources, largely selected from an “all-source” Request for Proposals (RFP) initiated under Georgia Power’s 2022 Integrated Resource Plan (IRP), aim to meet projected winter capacity needs from 2029 to 2031. The comprehensive request includes power purchase agreements from existing assets, new company-owned natural gas combined cycle units totaling 3,692MW, and a robust portfolio of battery energy storage and solar-plus-storage projects identified through a competitive evaluation process.

Specifically, Georgia Power seeks approval for 10 new BESS facilities, collectively providing 3,022.5MW of capacity, and two solar-plus-storage facilities adding 350MW of solar and 350MW of energy storage. All these company-owned BESS projects will utilize Tesla Megapacks, featuring lithium iron phosphate (LFP) battery chemistry, known for their durability and a projected 20-year lifespan with a four-hour duration. While specific costs remain redacted in the public filing, the utility asserts these BESS projects are “cost-effective” and will deliver “positive economic impacts” benefiting all Georgia Power customers.

This latest filing builds on previous BESS initiatives by Georgia Power, including the commencement of construction on 765MW of BESS in May and the unanimous PSC approval in December 2024 for an initial 500MW of BESS projects. The utility’s revised forecast anticipates more than 8GW of load growth in its service area by 2030, an upward adjustment from its 2023 projection of 6GW, further emphasizing the urgency and scale of these investments. The recent PSC approval of Georgia Power’s 2025 IRP, which targets an additional 4GW of renewables and 1.5GW of new BESS by 2035, reinforces this trajectory.

Allan Oduor of Enertis Applus+ highlights that Georgia’s burgeoning utility-scale storage market is driven by this substantial load growth and the state’s emergence as a pivotal hub in the domestic battery supply chain. “Georgia’s emerging domestic battery manufacturing facilities incorporate production flexibility to serve both automotive and grid-scale storage markets,” Oduor noted, emphasizing how this dual capability enhances supply chain reliability and reduces procurement delays. He added that Georgia is “filling a genuine capacity gap with ready-to-build projects, an anchored supply chain, and a clear procurement schedule.”

The strategic importance of such large-scale BESS deployments is echoed globally. In the Shetland Islands, for instance, Wärtsilä is set to deliver a 68MW BESS under an engineered equipment delivery contract to Zenobe, a leading UK grid-scale battery operator. This “Shetland Standby Project,” slated for 2026, aims to enhance energy security, reduce emissions by enabling the Lerwick Power Station to transition to a standby role, and integrate more of Shetland’s abundant wind resources. The system, managed by Wärtsilä’s GEMS Digital Energy Platform, will provide distribution fault ride through (DFRT) capabilities, ensuring grid stability and uninterrupted power during transmission outages. Tamara De Gruyter, President of Wärtsilä Energy Storage, underscored the importance of energy storage for grid stability, stating that Wärtsilä’s platform helps “future-proof the grid with battery systems that can react in microseconds to any type of system disturbance.” James Basden, Zenobe Founder Director, added that the project “will maintain security of supply…while reducing emissions and utilizing more renewables.” These parallel developments in Georgia and Shetland underscore a global imperative for robust, large-scale battery storage solutions to support grid modernization and the accelerating energy transition.