Prologis carves niche with its first battery storage unit in Texas

Technology becoming highly sought amid rising energy demands in Texas

Prologis Launches its First Battery Storage Unit in Texas

Prologis CEO Hamid Moghadam (Photo Illustration by Steven Dilakian for The Real Deal with Getty)

Prologis, one of the titans of industrial real estate and an active investor in Texas, is pushing forward a type of renewable energy technology that could have long-term implications on the industry.

San Francisco-based Prologis has activated its first battery storage unit in Texas, marking the beginning of several battery projects up the company’s sleeve, the Dallas Business Journal reported

The inaugural 10-megawatt project, located near Prologis’ logistics warehouse at 3651 Allen Avenue in Arlington, has the capacity to supply energy to approximately 5,200 households for two hours during peak usage times, according to the Electric Reliability Council of Texas. 

The company, which owns about 300 logistics buildings in Dallas-Fort Worth, has larger battery projects in the pipeline, although they will likely require more time and be situated outside city limits where land costs are lower. Smaller projects can be implemented more swiftly.

“We are optimizing the use of underutilized land around our buildings to put in energy assets that provide accessible, clean energy to our customers and neighborhoods where we are serving,” Prologis’ Vibhu Kaushik told the outlet. 

Prologis Energy plans to develop two more 10-megawatt projects, in Grand Prairie and Houston.

Battery storage is increasingly seen as a vital component in addressing rising energy demands in Texas. The state’s energy grid has been under significant strain due to a burgeoning population, severe winter storms and unusually hot summers. 

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Batteries help manage demand by storing excess power for use during critical times. In September, batteries across Texas supplied 2,172 megawatts to the grid, enough to power about 434,000 homes, the Texas Tribune reported. 

ERCOT anticipates nearly doubling the state’s energy demand by the end of the decade. 

“When you see projects like this coming online, it gives us hope that we’re going to be able to achieve that goal, because every megawatt is going to count,” Texas state Rep. Chris Turner said.

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Tom Seng, an assistant professor of professional practice in energy finance at Texas Christian University, noted that the state’s battery storage capacity has doubled in the past year, from about 3,000 megawatts to 6,500 megawatts. Batteries, which charge overnight, offer a ready supply of power during peak times and can be economically beneficial, as stored energy can be sold at higher prices during peak demand.

The U.S. Energy Information Administration’s energy atlas lists two other major battery storage systems in DFW: Chisholm Grid’s 100-megawatt facility in Tarrant County and Acciona Energy USA Global’s 190-megawatt project in Hunt County.

—Quinn Donoghue

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