Austin Energy expands local battery storage to support reliable, affordable power

May 19, 2026

Austin Energy has entered into an agreement with Base Power to deploy 40 MW of residential battery storage across the utility’s service territory. This work strengthens the local grid by adding a new dispatchable resource that can be activated during periods of peak demand or price volatility while creating an opportunity for Austin homeowners to participate in Base Power’s whole-home backup power program.

Together, the batteries will work like one large energy resource that Austin Energy can use when demand and power prices spike. They can quickly put electricity onto the system to ease customer demand and protect them from high energy costs. The battery systems will be able to support participating customers through typical outage situations and will support the local grid during times of daily need.

Once installed, the combined batteries will be able to provide their full 40 MW of power for about an hour and a half. They can also discharge smaller amounts of energy over longer periods.

“This partnership is an example of our all-in approach to providing sustainable, affordable and reliable power for our customers,” said Austin Energy General Manager Stuart Reilly. “40 megawatts of local battery storage helps us deliver the power our community needs today while planning for our energy future.”

Under the agreement, Austin Energy will manage the resource by dispatching during peak demand to shave load and help manage wholesale energy prices. Base Power handles system installation and ongoing maintenance. Base is developing details of its offering and expects to launch later this summer.

“We’re proud to partner with Austin Energy,” said Zach Dell, CEO of Base Power. “Base was founded in Austin, and we’re excited to help improve local grid reliability, while also providing homeowners access to affordable home backup. We look forward to working with the utility and local homeowners to further our shared grid reliability goals.”

Along with an earlier 100 MW battery storage project, this agreement is an important piece of Austin Energy’s Resource, Generation and Climate Protection Plan to 2035 and the utility’s progress to strengthen local reliability while advancing a cleaner, more resilient energy future.

Background

This agreement comes from a February 2025 request for proposals for local battery storage. Under the new agreement, Austin Energy is only contracting for battery capacity. Austin Energy is not involved in any agreements or billing between Base Power and its customers, and nothing will change about Austin Energy’s electric service, rates or billing.

Utility-scale battery integration is a part of the plan, which provides a flexible path to a clean energy future that incorporates the community’s core values of reliability, affordability, environmental sustainability and energy equity. By expanding our portfolio of flexible, dispatchable resources, Austin Energy is building a more adaptable grid — one capable of supporting renewable growth while ensuring the reliability that customers expect.

This project advances Austin’s climate goals and strengthens the foundations for future resource planning, including the strategic use of peaking resources (power sources needed to maintain system reliability only used when electricity demand is highest).