Platte River tenders for 20MW solar and 5MWh battery storage in Colorado

Overview of the Solar and Storage Initiative

Platte River Power Authority, a non-profit utility company based in Colorado, has officially issued a Request for Proposals (RFP) for a combined 20 megawatts (MW) of solar photovoltaic capacity and 5 megawatt-hours (MWh) of battery energy storage systems16. This ambitious project represents a significant step forward in the integration of renewable energy resources within the state's electricity grid and underscores the utility's commitment to environmental sustainability. The solar-plus-storage installation will serve as an integral component of a broader community solar program designed to provide clean electricity to Platte River's local customers across its service territory. This initiative aligns perfectly with the utility's long-term strategy to reduce carbon emissions while maintaining the high reliability standards that customers have come to expect.

The proposed system will be connected to Platte River's existing generation assets, including the Rawhide Energy Station, which currently features a 280-megawatt coal-fired unit alongside other generation resources1. By combining solar energy with battery storage technology, the utility aims to address the intermittent nature of renewable generation while enhancing grid stability during peak demand periods. This approach allows for the maximization of renewable energy utilization without compromising the reliability of electricity supply. The deployment of energy storage is particularly strategic as it enables the utility to capture excess solar energy produced during daylight hours for use during evening peaks or periods of limited sunlight.

Jason Frisbie, General Manager and CEO of Platte River Power Authority, emphasized the economic and operational benefits driving this initiative: "Our communities and customers are asking for more carbon-free energy resources. We believe we can provide them with additional solar generation at very reasonable costs while maintaining our high standards of reliability. As battery prices continue to decline, we're increasingly interested in energy storage not only for potential cost savings but also for the operational benefits we gain from experience with this technology at broader scales."1 This statement reflects the utility's balanced approach toward meeting customer demands for cleaner energy while ensuring technological and economic practicality.

Colorado's Renewable Energy Landscape

Policy Framework and Market Conditions

Colorado has established itself as a national leader in renewable energy adoption, with ambitious policies supporting the transition toward cleaner electricity generation. The state's renewable portfolio standards and supportive regulatory environment have created favorable conditions for utilities like Platte River Power Authority to invest in solar and storage technologies37. This progressive policy framework has been instrumental in driving the state's remarkable transition from fossil fuel dominance to renewable energy leadership. In 2017, coal generation accounted for 44% of Colorado's electricity mix, while renewable resources contributed only 28%, with the remaining 28% coming from natural gas3.

Recent developments indicate a dramatic shift in this energy landscape, with projections suggesting that by 2026, renewable energy will account for 53% of the state's electricity generation, while coal's share will decline to just 24%3. This transformation is largely driven by economic factors that have made renewable energy increasingly competitive with conventional fossil fuel generation. The state's largest utility, Xcel Energy, has reported astonishingly low bid prices for renewable projects, including wind plus storage at median prices of 2.1 cents per kilowatt-hour and solar plus storage at 3.6 cents per kilowatt-hour3.

Economic Advantages of Renewable Integration

The economic case for renewable energy in Colorado has strengthened considerably in recent years, with solar and wind projects now frequently outperforming conventional generation sources on cost considerations alone38. This favorable economics is enhanced by the integration of battery storage systems, which allow utilities to maximize the value of intermittent renewable resources by time-shifting energy delivery to periods of higher demand and value. The state's utilities have recognized that investing in renewable energy coupled with storage not only reduces environmental impacts but also delivers significant cost savings to customers.

For instance, Xcel Energy's Colorado subsidiary expects to save ratepayers between $213 million and $374 million by replacing aging coal facilities with renewable energy and storage systems3. These savings demonstrate how technological advancements and declining costs have transformed clean energy from a premium-priced alternative to an economically advantageous choice. The continued reduction in battery storage costs—with global averages falling below $300 per kWh in 2024—has been particularly instrumental in improving the business case for solar-plus-storage projects8.

Table: Colorado's Electricity Generation Mix Transition

Source: Colorado Energy Market Analysis Report3

Technological Aspects of the Project

Battery Storage Specifications

The Platte River solar-plus-storage project will incorporate lithium-ion battery technology with a total capacity of 5 MWh, providing significant flexibility in managing the intermittent nature of solar power generation16. While specific technical details of the system have not been fully disclosed, industry standards suggest the use of advanced battery chemistries optimized for utility-scale applications, likely based on lithium iron phosphate (LFP) technology which offers enhanced safety characteristics and longer cycle life compared to other lithium-ion variants29. These battery systems typically feature sophisticated energy management systems that optimize charging and discharging cycles based on grid conditions, weather forecasts, and electricity market dynamics.

Modern battery storage systems of this scale incorporate multiple safety layers and advanced management systems to ensure reliable operation under various conditions9. These include thermal management systems to maintain optimal operating temperatures, state-of-charge monitoring to prevent overcharging or deep discharging, and advanced power conversion systems that enable seamless transition between charging and discharging modes. The battery system will likely be containerized for ease of installation and scalability, following industry trends for utility-scale energy storage deployments10.

Solar Generation Components

The 20 MW solar photovoltaic array will consist of thousands of individual solar panels mounted on tracking systems that follow the sun's movement throughout the day, maximizing energy production compared to fixed-tilt systems16. These tracking systems typically increase energy production by 15-25% annually compared to fixed mounts, significantly enhancing the economics of the project. The solar facility will be designed to interconnect with Platte River's existing transmission infrastructure, allowing for efficient delivery of power to customers across the utility's service territory.

The combination of solar generation with battery storage creates a hybrid resource that can deliver energy more consistently than standalone solar facilities. During periods of peak solar production, when grid demand might be lower, excess energy can be stored in the batteries for later use when demand increases or solar generation decreases. This capability transforms solar energy from an intermittent resource into a more dispatchable one, similar to conventional power plants but without associated fuel costs or emissions8.

Market Context and Industry Trends

Global Energy Storage Expansion

The global energy storage market is experiencing unprecedented growth, driven by declining costs and increasing recognition of storage's value in integrating renewable energy into electricity systems. Research indicates that worldwide energy storage deployments increased by nearly 50% year-over-year in recent periods, with projections suggesting continued strong growth throughout the decade14. By 2025, global energy storage installations are expected to reach 285 gigawatt-hours (GWh), representing a 44% increase from the previous year, with further growth to 377 GWh anticipated in 20264.

The United States represents one of the largest and fastest-growing markets for energy storage, particularly for utility-scale applications like the Platte River project. In 2025, the U.S. utility-scale storage market is projected to grow by 41% to reach 40 GWh of new installations4. This growth is supported by federal policies such as the investment tax credit (ITC) for storage projects, which has been extended through 2034 though at reduced rates in later years4. These supportive policies have helped create a favorable investment environment for storage projects across the country.

Regional Leadership in Renewable Integration

Colorado has emerged as a regional leader in the transition to renewable energy, with utilities across the state actively pursuing ambitious clean energy goals37. Platte River Power Authority itself has established a target of achieving 100% non-carbon electricity generation, reflecting the state's broader commitment to deep decarbonization of its electricity sector2. This project represents an important step toward that long-term goal while providing valuable experience with the integration of storage technologies that will be essential for managing higher penetrations of renewable energy.

The state's utilities are not alone in this transition; across the western United States, states with Democratic leadership are accelerating clean energy projects to capitalize on federal tax incentives before potential phase-outs7. In California, Governor Gavin Newsom has directed state agencies to identify and prioritize carbon-free energy projects eligible for federal tax credits, while Oregon regulators have similarly urged utilities to expedite construction timelines for clean energy projects7.

*Table: Projected Global Energy Storage Market Growth (2025-2026)*

*Source: 2025 Energy Storage Industry Mid-Term Strategy Report4*

Economic and Environmental Implications

Cost Considerations and Rate Impact

The declining cost of both solar panels and battery storage systems has been fundamental to improving the economics of projects like Platte River's solar-plus-storage initiative18. Global average costs for battery storage have fallen below $300 per kWh, with further reductions anticipated as manufacturing scales and technology improves8. These cost reductions have been so significant that in some markets, utility-scale solar installations with integrated battery storage have become more economical than gas-fired power plants, representing a pivotal shift in energy economics8.

Platte River's management has emphasized their confidence in delivering this project at reasonable costs while maintaining reliability standards1. This confidence reflects the broader trend of renewable energy and storage becoming increasingly cost-competitive with conventional generation resources. The project is expected to provide long-term benefits to customers through reduced fuel costs and decreased exposure to fossil fuel price volatility, while also potentially providing grid services that enhance system reliability and resilience.

Environmental Benefits and Sustainability

The environmental benefits of transitioning to renewable energy are substantial, particularly in a state like Colorado that has historically relied heavily on coal-fired generation3. By displacing fossil fuel-based generation, the 20 MW solar and 5 MWh storage project will help reduce emissions of greenhouse gases and conventional pollutants such as nitrogen oxides and sulfur oxides. These reductions contribute to improved air quality and public health outcomes while also addressing the urgent need to reduce carbon emissions in response to climate change.

Colorado's transition away from coal toward renewable energy is expected to yield dramatic emissions reductions, with projections indicating that carbon emissions will decline by more than 60% below 2005 levels, while nitrogen oxide and sulfur oxide emissions from coal combustion will decrease by approximately 90% compared to 2005 levels3. These improvements demonstrate the significant environmental benefits that can be achieved through the strategic integration of renewable energy and storage technologies.

Future Outlook and Industry Implications

Long-Term Strategic Direction

The Platte River solar-plus-storage project represents more than just an incremental addition of clean energy capacity; it reflects a fundamental shift in how utilities plan and operate their systems23. The integration of storage with renewable generation enables utilities to maintain reliability while increasing the penetration of variable resources, addressing one of the traditional limitations of solar and wind energy. This approach is likely to become increasingly common as utilities across the country work to reduce emissions while maintaining system reliability.

Platte River Power Authority's longer-term plans include significantly larger storage deployments, evidenced by their recent agreement with NextEra Energy Resources to develop a 100 MW/400 MWh battery storage system in Severance, Colorado2. This project, which will utilize lithium iron phosphate chemistry, represents a substantial scaling up of the utility's energy storage capabilities and will be co-located with the Black Hollow solar project, currently under development and expected to be one of the state's largest solar facilities upon completion2.

Broader Industry Transformation

The energy storage industry continues to evolve rapidly, with technological advancements improving system performance, safety, and economics89. Manufacturers are now offering guarantees of 10,000 charge-discharge cycles while maintaining over 80% battery health throughout that lifespan, demonstrating the remarkable durability of modern battery systems8. These advancements are critical for utility-scale applications where long operational lifespans are essential for project economics.

The growing emphasis on domestic manufacturing and supply chain security is also shaping the storage industry, with increased attention to building resilient supply chains that can support expected growth in deployments45. Events like the China International Lithium Battery Exhibition highlight the ongoing innovation in battery technology and manufacturing processes that will continue to drive improvements in the years ahead5.