Austin Energy says carbon-free share down to 65% amid congestion, highlights battery and solar pipeline

Lisa Martin, Austin Energy chief operating officer, briefed the Austin Energy Utility Oversight Committee on May 28 on progress toward the utility's 2035 resource generation and climate protection plan.

Martin said Austin Energy's carbon-free percentage of load is currently about 65%, down from a high in 2022. She attributed the decline to transmission congestion, curtailment of resources and demand growth, noting that local solar and battery projects and import capacity increases are among the tactics intended to raise the carbon-free share again. "Our carbon free resources aren't going as far these days due to those factors," Martin said.

Martin reported progress on several plan goals: 844 megawatts of cumulative energy-efficiency capacity (about 86% of that goal), 28 megawatts of thermal-energy storage toward a 40 MW target, and 48 megawatts of demand-response capability toward a near-term 78 MW goal. She said Austin Energy is near its 2027 battery goal of 125 megawatts once a pending contract is executed.

"We are bringing to you a contract for authorization for 100 megawatts pending your approval and final negotiations," Martin said, identifying Jupiter Power as the counterparty in an item on a forthcoming council agenda. She said a second potential battery contract remains under discussion and, if concluded, would help reach or exceed the 125 MW target.

Martin described the 2024 DNV Energy Insights study, which estimated that customer energy-solution (efficiency and demand-response) spending would need to more than double — from roughly $32 million in 2025 to about $69 million annually by 2035 — to meet achievable savings. She said some goals in the generation plan were intentionally aggressive and that the utility would balance ambition with cost-effectiveness.

Council members asked about federal funds for Solar for All and other programs. Richard Genesee, vice president of customer energy solutions, told the committee that "all indications are to date" that grant funding for the Solar for All program will continue and noted Texas's $250 million federal allocation within a larger competitive award. He added that the program operates on a reimbursement model and funds must be spent over five years.

Members also raised the impact of recent federal tax-law changes on residential solar economics. Martin and Genesee said Austin Energy is evaluating changes to incentives — including the possible need to adjust local incentives — as federal residential solar tax credits are reduced or eliminated in coming years. Genesee said participation trends have shifted, with large national providers pulling out of some utility incentive programs and a smaller share of residential jobs receiving incentives.

Martin and council members discussed demand response as a challenging portion of the plan because it requires customer enrollment and engagement. Martin said the utility is expanding commercial demand response — including adding more than 150 city facilities representing roughly 6.4 MW — and that demand response and battery programs are complementary.

Martin also listed a set of uncertainties affecting procurement and supply chains: changes to federal tax credits (discussed in the briefing as a legislative change affecting production and investment tax credits for wind and solar beginning in 2028), foreign-entity-of-concern restrictions, and broader geopolitical supply-chain issues. She said the utility is continuing procurement work and intends to bring evaluation, measurement and verification consultant contracts to council in the coming months.

The committee did not take formal action on the plan update during the briefing. Martin said staff will continue program launches, pursue pending contracts, and return with required council items and further updates.