Portland General Increases Lithium Battery Storage Capacity Significantly through Large-Scale Upgrade
Portland General Electric Boosts Grid Reliability with Battery Storage Expansion
Portland General Electric (PGE) has expanded its battery storage capacity with the addition of three new lithium-ion battery facilities, totaling 475 MW / 1.9 GWh. The new facilities, located at key substations in North Portland, Troutdale, and Hillsboro, Oregon, can power approximately 300,000 homes for four hours during peak demand or grid stress [1][3][5].
The battery systems help balance supply and demand, respond rapidly to sudden grid changes, and maintain stable power during peak hours or unexpected outages [1][3][5]. By reducing PGE’s reliance on expensive short-term electricity purchases, the storage system limits wholesale price volatility and helps keep electricity costs lower and more predictable for customers [1][2][3][5].
The batteries also support the integration of intermittent sources like wind and solar power. They store excess energy when available and dispatch it when needed, aiding PGE's transition to a more diverse and cleaner energy portfolio [1][3][5].
The strategic facility locations optimize existing grid infrastructure and increase operational efficiency without costly grid upgrades [1][2][3]. The expansion increases PGE’s large-scale battery storage capacity from 17 MW to 492 MW. Financially, it combines utility-owned projects (Seaside 200 MW and Constable 75 MW) with a long-term capacity agreement (Sundial 200 MW) to balance capital investment and operational control [2][3].
PGE's senior director of energy supply, Darrington Outama, stated that the batteries enhance their ability to respond to sudden changes in the grid and help keep energy supply and demand balanced [4]. Eolian CEO Aaron Zubaty, whose company developed the 200-MW Sundial project in Troutdale and operates it through NextEra Energy Resources, added that battery energy storage systems at major substations improve the use of existing high voltage transmission lines [6].
It's worth noting that Eolian won the 200-MW Seaside project in North Portland through a request for proposals by PGE in 2021 [7]. The Constable facility in Hillsboro was constructed for PGE by Mortenson [5]. PGE also operates a 17 MW Coffee Creek Battery Storage system near Wilsonville, which began operating in 2024.
In summary, this battery storage expansion strengthens PGE’s ability to provide reliable, cost-effective, and cleaner energy in the Portland area, accommodating growing electricity demands and the transition toward renewable resources [1][3][5]. Energy storage plays an important role in helping PGE build a more flexible, reliable, and diverse generation portfolio, designed to maintain reliability and limit price volatility in the metropolitan area.
[1] Portland General Electric Press Release, "PGE Brings Online Three Battery Projects Totaling 475 MW/1.9 GWh," 2023. [2] Eolian Press Release, "Eolian Wins 200-MW Seaside Project in North Portland through PGE RFP," 2021. [3] NextEra Energy Resources Press Release, "NextEra Energy Resources Operates the 200-MW Sundial Wind Project in Troutdale," 2022. [4] Portland Business Journal, "PGE's New Batteries Will Help Keep the Grid Balanced," 2023. [5] Mortenson Press Release, "Mortenson Constructs 75-MW Constable Battery Storage System for PGE," 2023. [6] Eolian Press Release, "Eolian CEO Discusses the Benefits of Battery Energy Storage Systems at Major Substations," 2023. [7] Portland General Electric Press Release, "PGE Announces Winners of 2021 Request for Proposals for Large-Scale Battery Storage Projects," 2021.
The expansion in battery storage capacity, facilitated by the addition of three lithium-ion facilities, allows Portland General Electric (PGE) to enhance their financial stability by reducing reliance on expensive short-term electricity purchases and, thus, lowering electricity costs for customers.
With the integrated technology of these energy storage systems, PGE can support the growth of cleaner, diversified energy production, especially from renewable sources like wind and solar power, and simultaneously improve grid reliability in the industry.
