Austin Energy has entered into a large-scale battery storage contract with Jupiter Power to provide up to 100 megawatts of electricity from a utility-scale battery storage facility. The agreement, announced on October 23, 2025, represents the largest battery storage initiative in Austin Energy's history and marks a significant step toward meeting the city's climate and reliability goals.

The initiative supports Austin Energy's goal of achieving 125 megawatts of battery storage by the end of 2027. Austin Energy has served the community for more than 130 years, making this project a significant investment in innovation and reliability for its service area.

Financial Terms and Contract Details

The agreement is valued at USD 14.4 million per year, with a term of up to 20 years, for a total estimated value of USD 288 million. This substantial financial commitment reflects Austin Energy's long-term strategy to modernize its electrical grid infrastructure.

The contract with Jupiter Power establishes a partnership between the municipal utility and the energy storage company, headquartered in Austin. Jupiter Power also operates battery energy storage systems in Houston, Texas.

Strategic Energy Planning and Grid Modernization

Battery storage plays a critical role in improving reliability by capturing electricity during periods of low demand and delivering it back to the grid during periods of high demand. This flexibility helps balance the integration of renewable energy sources, reduces reliance on fossil fuels, and improves overall system resilience during extreme weather events.

Utility-scale battery integration is a part of Austin Energy's Resource, Generation, and Climate Protection Plan to 2035, which provides a flexible path to a clean energy future that incorporates the community's core values of reliability, affordability, environmental sustainability, and energy equity. By expanding its portfolio of flexible, dispatchable resources, Austin Energy is building a more adaptable grid that can support renewable growth while ensuring the reliability customers expect.

The project not only advances Austin's climate goals but also strengthens the foundations for future resource planning, including the strategic use of peaking resources. Peaking resources are power sources needed to maintain system reliability and are used only when electricity demand is highest.

Leadership Statements and Company Perspectives

Mayor Kirk Watson emphasized the broader significance of the project beyond infrastructure investment. “This battery storage project boosts our grid, but it's more than an investment in infrastructure; it's a commitment to a cleaner, more resilient energy future for Austin,” Watson said. “We're harnessing innovation, we're strengthening reliability, supporting renewables, and delivering on our promise to serve our community sustainably.”

Stuart Reilly, Austin Energy interim general manager, highlighted the agreement's role in grid modernization efforts. “This agreement reflects a commitment to modernize the grid and ensure reliable, sustainable energy for Austin Energy customers,” Reilly said. “Battery storage is an important component of our energy strategy, and we're proud to bring this emerging technology online to benefit our community.”

Andy Bowman, Chief Executive Officer of Jupiter Power, expressed satisfaction with the partnership opportunity. “We are extremely pleased to be working with Austin Energy, a nationally recognized leader in grid reliability, clean energy, and efficiency, to advance their energy storage goals, especially here, where Jupiter was founded,” Bowman said. “Austin Energy has a clear vision for the future, and as both a proud customer, with headquarters in Austin, and now partner, Jupiter couldn't be happier to be a part of it.”

Bowman's statement indicates that Jupiter Power serves as both a customer of Austin Energy and a partner in this battery storage initiative, creating a dual business relationship between the organizations. The CEO specifically noted Austin Energy's national recognition as a leader in grid reliability, clean energy, and efficiency.

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