Analysis of Battery Storage Integration in the MISO Grid and its Alignment with Sustainable Development Goals

Executive Summary

A report prepared by Aurora Energy Research for the American Clean Power Association details the profound impact of integrating approximately 11 GW of battery energy storage systems (BESS) into the Midcontinent Independent System Operator (MISO) grid. The study projects significant economic savings and enhanced grid stability by 2035, demonstrating a strong alignment with key United Nations Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), SDG 11 (Sustainable Cities and Communities), and SDG 13 (Climate Action).

Economic Viability and Contribution to SDG 7 (Affordable and Clean Energy)

The integration of BESS is projected to deliver substantial financial benefits, directly supporting the targets of SDG 7 to ensure affordable and reliable energy for all.

• System Cost Savings: An estimated $27 billion in system-wide cost savings could be realized by 2035.
• Price Stabilization: Batteries mitigate price volatility by storing low-cost energy and dispatching it during high-demand periods. Modeling for a day in May 2035 indicates peak power prices could be reduced to $85.90/MWh, compared to $245.30/MWh in a scenario without new battery capacity.
• Cost Avoidance: Without additional storage, average wholesale power prices are projected to increase by $1.40/MWh, adding $1.2 billion to overall electricity costs by 2035.

Modernizing Infrastructure for SDG 9 (Industry, Innovation, and Infrastructure)

The deployment of BESS is a critical innovation for building resilient and sustainable energy infrastructure, a core objective of SDG 9.

1. Current State: MISO currently operates approximately 125 MW of battery storage against a record peak load of 127 GW.
2. Projected Growth: The grid operator is expected to have nearly 1 GW of storage by spring 2026, with a significant development pipeline that includes 60 GW of standalone storage.
3. Market Drivers: This infrastructural shift is driven by the retirement of thermal assets, rising demand, declining capital costs for BESS, and strong federal incentives like clean energy tax credits.

Advancing Climate Action (SDG 13) and Sustainable Communities (SDG 11)

By enabling a cleaner energy mix and a more reliable grid, battery storage is instrumental in advancing climate goals and fostering sustainable communities.

• Enabling Renewables: BESS is crucial for integrating the vast potential of renewables in the MISO interconnection queue, which includes 175 GW of solar and 42 GW of wind. This directly supports SDG 13 by reducing reliance on fossil fuels.
• Enhancing Grid Reliability: As demonstrated in other grids like ERCOT, battery storage can prevent load-shedding events during periods of extreme stress, ensuring a reliable power supply essential for the functioning of sustainable cities and communities (SDG 11).
• Reducing Emissions: By providing ancillary services and displacing the need for gas-fired peaker plants, batteries help lower system-wide emissions and contribute to cleaner air in communities.

Relevant Sustainable Development Goals (SDGs)

SDG 7: Affordable and Clean Energy

• The article directly addresses the core principles of SDG 7 by focusing on making energy more affordable, reliable, and clean. It details how battery storage can lower electricity costs for consumers, ensure a stable power supply by preventing load sheds, and facilitate the integration of large-scale renewable energy sources like solar and wind.

SDG 9: Industry, Innovation, and Infrastructure

• The discussion centers on upgrading and modernizing energy infrastructure. The deployment of 11 GW of battery storage represents a significant investment in innovative, sustainable, and resilient infrastructure for the MISO grid, which is essential for supporting economic activity and community well-being.

SDG 13: Climate Action

• By enabling the large-scale integration of renewable energy (175 GW of solar and 42 GW of wind in the queue) and supporting the retirement of thermal (fossil fuel) assets, the battery storage solutions discussed are a direct measure to combat climate change by reducing greenhouse gas emissions from the power sector.

Identified SDG Targets

Targets under SDG 7 (Affordable and Clean Energy)

1. Target 7.1: Ensure universal access to affordable, reliable and modern energy services. The article supports this by highlighting how batteries can lead to “$27 billion in system cost savings” and reduce peak power prices from “$245.30/MWh to $85.90/MWh,” making energy more affordable. It also improves reliability, citing an example where batteries “prevent[ed] load sheds.”
2. Target 7.2: Increase substantially the share of renewable energy in the global energy mix. The article shows how batteries are critical for this goal by enabling the grid to manage the intermittency of the “175 GW of solar and 42 GW of wind” projects in MISO’s interconnection queue.
3. Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology…and promote investment in energy infrastructure and clean energy technology. The article points to “strong federal clean energy tax credits” as a key driver for investment and deployment of battery storage technology.

Targets under SDG 9 (Industry, Innovation, and Infrastructure)

1. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure. The entire premise of adding 11 GW of batteries is to build a more reliable and sustainable energy infrastructure capable of handling modern energy demands and sources.
2. Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable…and greater adoption of clean and environmentally sound technologies. The article describes a direct upgrade to the energy grid by adopting battery storage, a clean technology that increases efficiency and supports sustainability by replacing “retiring thermal assets.”

Targets under SDG 13 (Climate Action)

1. Target 13.2: Integrate climate change measures into national policies, strategies and planning. The “federal production and investment tax credit for wind and solar” and “existing tax credits for storage facilities” mentioned in the article are examples of national policies designed to integrate climate-friendly energy solutions into the country’s infrastructure planning.

Implied Indicators for Measuring Progress

• Cost of Electricity: The article provides quantifiable metrics for measuring affordability, such as the projected “$27 billion in system cost savings by 2035” and the reduction of peak power prices from “$245.30/MWh” to “$85.90/MWh.”
• Grid Reliability: Progress can be measured by tracking the frequency and duration of power outages. The article implies this by noting that batteries in the ERCOT system discharged electricity to “prevent load sheds.”
• Installed Capacity of Clean Energy and Storage: The article provides clear indicators of progress, including the current “125 MW of battery storage,” the expected “1 GW of battery storage by next spring,” and the long-term potential represented by the “60 GW of standalone storage,” “175 GW of solar,” and “42 GW of wind” in the interconnection queue.
• Investment and Policy Support: The existence and extension of “federal clean energy tax credits” serve as an indicator of government commitment and financial incentive driving the adoption of these technologies.

Summary Table: SDGs, Targets, and Indicators

Source: utilitydive.com