PGE Secures Approval for Price Increase on 1GW BESS Portfolio Amid Federal Regulatory Changes
PGE has received regulatory approval to raise prices for its 1GW battery energy storage system (BESS) portfolio in response to changes in federal tax and tariff policies affecting the renewable energy sector. The utility identified significant capacity shortfalls for 2028 and has selected projects totaling 1,015MW, with costs increasing from US$144/kW-year to US$237/kW-year. These developments come as the New York Power Authority also reduces its renewable portfolio amid similar federal challenges.
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PGE received regulatory approval to increase the price of its 1GW battery energy storage system (BESS) portfolio due to significant changes in federal tax and tariff policies, which have affected the renewable energy sector. The utility identified a summer capacity shortfall of 797MW and a winter shortfall of 465MW for 2028.
In response, PGE requested new bids from all eligible developers, resulting in a 64.6% increase in average capacity costs, from US$144/kW-year to US$237/kW-year. PGE selected one 400MW standalone BESS and two solar-storage hybrid projects totaling 615MW, all expected to be operational by December 31, 2027.
Recent tax policy changes, particularly regarding FEOC restrictions, have impacted project economics, with PGE reporting that investment tax credits can reduce costs by up to 50%. The New York Power Authority also scaled back its renewable portfolio amid federal challenges.
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