New Energy Storage Site Helps Colorado Springs Utilities Cut Costs for Customers

COLORADO SPRINGS — Colorado Springs is now home to its first battery energy storage system, marking a major step toward a more sustainable and cost-effective energy future. Utility experts say these systems are key to shifting from fossil fuels to renewable energy sources.

The batteries store excess energy from sources like solar panels, making it available during times of high demand. “Batteries are going to be a future for us,” said Colorado Springs Utilities CEO Travas Deal. “As the technology evolves and utilities learn to use them more effectively, the cost savings for customers could be greater than we can currently imagine.”

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Colorado Springs Utilities says the system allows it to purchase electricity when rates are low and store it for use when prices spike, directly lowering costs for customers.

“You can take energy from the grid when demand is lowest—whether it’s solar, wind, or even surplus energy from gas plants—and store it in these batteries,” explained Jim Shandalov, Vice President of Origination at NextEra Energy Resources. “Then, when demand peaks—like hot afternoons when everyone’s using air conditioning—you can draw from the stored energy.”

A NextEra Energy Resources subsidiary owns and operates the 16-acre site in Peyton, located in eastern El Paso County. The company is one of the nation’s largest energy infrastructure providers.

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This facility can store enough energy to power about 20,000 homes for four hours during high-demand periods like afternoons or evenings.

“These batteries charge and discharge every day—just like your phone. You charge it once a day, use it, and then charge it again,” said Shandalov.

He added that this system will boost the reliability, efficiency, and resilience of the region’s power grid.

Deal emphasized that the effort aligns with Colorado’s broader energy goals. “Colorado Springs Utilities is working to meet the state’s long-term decarbonization targets, but those come with costs,” he said. “We’re focused on doing it in the most cost-effective way possible.”

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