Chemical facilities in ERCOT are some of the largest industrial electricity users, often using tens or hundreds of MW. Because of ERCOT’s 4CP transmission charge structure, even a brief spike in load during specific summer intervals can drive millions of dollars in annual costs. Installing a battery energy storage system can significantly reduce that exposure.
Further, Texas’ peak demand is projected to rise from 87 GW in 2025 to 138 GW by 2030, an increase of nearly 60%. Now is the time for chemical facilities to evaluate battery storage, if you haven’t done so already.
This blog outlines the benefits of battery storage for the chemicals industry operating in ERCOT and how Convergent Energy and Power can take the hassle out of energy storage for you and your facility.
Why Chemical Facilities in ERCOT Should Consider Battery Storage
Petrochemical plants typically have characteristics that make BESS highly effective:
- Very high electrical demand (20–200+ MW)
- Limited ability to curtail processes
- Stable, predictable load profiles
- Significant exposure to T&D charges
These features make battery storage-based peak shaving more strategic, valuable and reliable than operational curtailment.
4CP Charges Can Be a Large Portion of Industrial Power Costs
ERCOT allocates transmission costs using the Four Coincident Peak (4CP) methodology. The grid identifies the single highest 15-minute demand interval in each summer month (June–September), and a facility’s demand during those four intervals determines its transmission charges for the entire next year. These events typically happen during summer afternoons, when demand is highest on the electric grid, or during other extreme weather events like Winter Storm Uri.
Key implications:
- Just 1 hour of demand across the year can drive transmission charges.
- These charges can represent ~30% of an industrial electricity bill.
- For a 50–100 MW petrochemical plant, the potential savings can reach millions of dollars per year.
Battery Storage: Shaving Without Interrupting Operations
Chemical plants typically run continuous processes, so shutting down equipment during peak periods is operationally risky. A battery storage system solves this by:
- Discharging during predicted 4CP intervals
- Supplying part of the facility load
- Reducing the net demand seen by the grid
Beyond 4CP: Additional Value Streams for Battery Storage Systems
For chemical facilities, 4CP reduction alone often justifies storage—but batteries can also generate additional value:
💰 Energy arbitrage: Charge during low-price periods and Discharge during high prices
⬇️ Demand charge management: Reduce non-coincident peak demand charges.
🔌 Backup power / resilience: Maintain critical operations during outages.
✅ Participation in ERCOT markets: Potential services including Ancillary services, Demand response, and Real-time price optimization
Stacking these revenues improves battery storage system economics, and can allow customers to maximize value.
Convergent Energy and Power: Proven Battery Storage Expertise
Now is the time for Texas’ chemical facilities to capitalize on the challenges facing the electric grid in ERCOT and take control of their energy future—and energy costs. Texas is rapidly deploying batteries partly for this purpose. The growth of flexible resources such as storage and demand response is already reshaping the 4CP landscape in ERCOT.
For 15 years, Convergent Energy and Power (Convergent) has gained deep expertise by working closely with industrial businesses to take the hassle out of on-site renewable solutions by building, owning, and operating systems on our customers’ behalf. In that time, we’ve reduced peak demand charges for business like Shell New Energies, and Ford.
Convergent has over 900,0000 hours operating energy storage systems that deliver peak shaving and grid reliability and have reduced our customers’ utility bills by up to 40%. Further, we have $1bn invested in or committed to energy storage systems, with over 800 MW operating or under development.
The best part: there’s no capital required from your business. The shared-savings contract Convergent offers means we share in the upside and only make money if our customers do.
Our tagline is “Powered by Results.” We have delivered millions in savings to our industrial customers while enabling them to access more affordable and more reliable power. This opportunity is a win for all involved.
If you’re looking to future-proof your facility with an on-site battery storage system, schedule a free, no-obligation introductory call with our team today.