A perfect fit: energy storage at thermal peakers

Peakers as underutilized assets

Peaker power plants, built to serve rare periods of peak electricity demand, are often inefficient, costly to operate, and underutilized for most of the year. Yet, these same facilities hold valuable development advantages for BESS. With existing interconnection agreements, substations, and permits already in place, they offer developers a faster and lower-risk pathway to market compared to greenfield sites.

Overcoming interconnection bottlenecks

Interconnection delays remain one of the largest barriers for new storage projects, with many waiting years in growing queues. By contrast, peaker plants can leverage mechanisms like CAISO’s Material Modification Assessment (MMA), which enables approval of BESS additions in a matter of months. This streamlined approach accelerates deployment, reduces uncertainty, and frees up capital that would otherwise be tied up during lengthy interconnection studies.

Lower costs and higher value

Beyond speed to market, co-locating BESS with peaker plants also reduces costs and improves operational value. Developers can reuse existing substations and main transformers, avoiding high capital expenses and supply chain bottlenecks. Operating expenses can also be optimized by tapping into the plant’s existing staff and infrastructure. At the same time, BESS integration helps cut runtime and emissions, aligning projects with growing offtaker and policy-driven decarbonization goals.

Proven and scalable strategy

As early projects have shown, pairing storage with peakers is not just a promising idea but a proven strategy. This model allows asset owners to unlock new revenue streams, improve environmental performance, and strengthen grid reliability while accelerating the pace of storage deployment. Co-located BESS and peaker plants represent a practical, scalable solution for meeting today’s energy and climate challenges.

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Learn more about BESS configurations for peaker plants — including benefits, risks, and key considerations — watching our webinar: Battery Energy Storage Systems at Peaker Plants (webinar) .

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