Dec 16, 2025

ERCOT’s Winter Outlook: Why Batteries Matter

ERCOT released its December Market Outlook for Resource Adequacy (MORA), and the headline is good news: the grid faces a small risk of emergency conditions this winter. Why? Two big factors: milder demand expectations and growth in battery storage.

Battery storage is transforming grid reliability. During peak stress – especially cold evenings when heating demand surges – batteries can discharge rapidly, helping maintain supply-demand balance. Texas has become the fastest-growing market for battery storage in the US. From September 2020 to September 2024, Texas’ total operational capacity of utility-scale batteries (large storage systems that plug directly into the grid or generation sources) increased more than 4,100% to 5,707 megawatts (MW), according to the US Energy Administration.

That doesn’t mean risk disappears. Extreme cold or unexpected generator outages can still push prices higher, especially in real‑time markets. But this outlook suggests fewer emergency alerts and more stability compared to past winters.

Read more: ERCOT’s Monthly Outlook for Resource Adequacy (MORA)