ERCOT BESS interconnection applications drop 50% in H2 2025 as faults in the boom emerge

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From ESS News

Texas nearly doubled its battery fleet in 2025, with 6 GW of new capacity coming online to total 13.9 GW and 22.9 GWh of operational grid-scale BESS capacity in early 2026, according to data from market research firm Modo Energy’s ERCOT Annual Buildout Report. It’s a record. The Electric Reliability Council of Texas’ (ERCOT) interconnection process is fast, but that makes it fragile.

According to Ovais Kashif, a US West research lead at Modo Energy, much of last year’s buildout reflects much older decision making.

“The record capacity delivered in 2025 came from projects financed three to five years ago, when battery revenues were much higher,” Kashif told ESS News. Now, the market remains more vulnerable to political shocks and the timeline after construction has remained the same for the past five years. As a result, he said, new interconnection applications in H2 fell 50% compared to H1, due to political hurdles like the loss of tax credits.

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