Austin Energy Strengthens Community's Reliable, Clean Energy Future
May 21, 2026
Austin Energy is moving forward toward enhancing reliability, resilience and clean energy through battery storage, wind power and efficient, natural gas peaker units. Aligned with Austin Energy’s Resource, Generation and Climate Protection Plan to 2035, these new resources will help meet the city’s growing energy needs while ensuring reliable, affordable service and supporting the community’s transition to a clean energy future.
Austin City Council’s May 21 approval allows Austin Energy to contract for 299 megawatts of wind energy, 100 megawatts of local battery storage and 400 megawatts of high-efficiency natural gas peaker units. Peakers provide reliable power during high-demand periods, serving as an insurance policy during extreme weather and long-duration events when other resources like solar, wind and batteries can’t meet demand.
“To provide sustainable, reliable and affordable power, Austin Energy needs the right mix of energy resources,” said Austin Mayor Kirk Watson. “Council’s direction today allows Austin Energy to keep finding the right ingredients to advance our climate goals while focusing on the utility’s responsibility to keep the power flowing.”
Community-Driven Roadmap for a Reliable Clean Energy Future
The Resource, Generation and Climate Protection Plan to 2035 was unanimously adopted by the Austin City Council in 2024 as a community-driven roadmap for Austin Energy’s clean energy transition. Developed through extensive public engagement, it sets ambitious clean energy targets while emphasizing reliability, affordability and equity.
Austin Energy maintains one of the cleanest and most diverse energy portfolios in the nation. More than 70% of Austin’s power comes from carbon-free resources — compared to 46% in Texas and 42% nationwide. However, many of Austin Energy’s generation resources are located far outside of Austin, leading to a shortage of local solutions to provide needed reliability and voltage support. New battery and peaker resources will support local reliability as the area’s energy needs continue to grow.
In the last 18 months since the 2035 Plan’s adoption, Austin Energy has advanced dozens of community-driven initiatives that grow the clean and local portfolio, including:
- Expanding Solar: Increasing the value of solar, residential solar leasing, commercial solar standard offer and repurposing an old city landfill for solar
- Battery Storage Efforts: Launching a virtual power plant program, customer-sited batteries and utility-scale battery storage
- Growing Demand Response: Enrolled 195 City facilities in demand response programs, launched battery demand response pilot and increased energy efficiency rebates
“With Austin’s rapid growth, rising electricity demand and increasingly unpredictable weather, it is more important than ever that Austin Energy provide sustainable, reliable power,” said Austin Energy General Manager Stuart Reilly. “Today’s Council decision helps us advance our climate goals while staying focused on our responsibility to keep the lights on during extreme weather and times when our grid is under the most pressure.”
Austin Energy will now begin contracting for these new resources and will continue engaging with the community as projects move forward.