Item 9- Staff Briefing: Austin Energy's Resource, Generation and Climate Protection Plan to 2035 — original pdf

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Austin Energy Resource, Generation and Climate Protection Plan to 2035 Semi-Annual Update Lisa Martin Deputy General Manager & Chief Operating Officer July 2026 © Austin Energy Item 9Today's Topics Progress to Key Metrics Implementation Project Highlights 2 Key Metric Reporting Progress to Carbon-Free Goal 100% Carbon-Free Generation as a Percentage of Load by 2035 63% 63% 66% 60% 54% 49% 77% 72% 70% 65% 65% 67% d a o L f o % 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026* (Q1 & Q2) Fiscal Year Reaching the 2035 Goal • • Local solar Import capacity increase • Wind & solar additions • Continue culture of innovation 4 Stack Emissions and Carbon Intensity Carbon Dioxide Stack Emissions Carbon Dioxide Intensity – All Generation 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 s n o T c i r t e M - 800 h W M / 2 O C b l 600 400 200 - 2021 2022 2023 2024 2025 lb/MWh Intensity Guardrail 2021 2022 2023 2024 2025 Nitrogen Oxides Stack Emissions Carbon Dioxide Intensity – Local Generation s n o T c i r t e M 3,000 2,500 2,000 1,500 1,000 500 - h W M / 2 O C b l 1000 900 800 700 600 2021 2022 2023 2024 2025 2021 2022 lb/MWh 2023 2024 2025 Intensity Guardrail 5 60% Reduction in Carbon Dioxide Stack Emissions 2005 – 2025 6,000,000 5,000,000 4,000,000 2 O C s n o T c i r t e M 3,000,000 2,000,000 6 Progress to Energy Efficiency Goals Reaching the 2027 Energy Efficiency Goal Reaching the 2030 Thermal Storage Goal MWs 1000 900 800 700 600 500 400 300 200 100 0 2027 Goal: 975 MW 109 MW to Goal • Continue weatherization and explore other programs • Single-Family & Multifamily New Construction • Strategic Energy Management • Acknowledge market potential challenges 866 MW as of FY25 • Shift to greenhouse gas avoidance measures Energy Efficiency MWs 100 90 80 70 60 50 40 30 20 10 0 2030 Goal: 40 MW 197 MW 10 MW as of to Goal FYTD 2025 30 MW as of FY25 Thermal Storage • Assess future options to maximize District Energy & Cooling output • Continue programs for customer-sited thermal energy storage systems 7 Progress to Demand Response Goals 300 250 200 150 100 50 0 Goal: 270 MW Reaching the 2035 Goal • Continue adding demand response capacity yearly 215 MW to Goal • Program Expansions: Confirmed Reduction: 55 MW Goal: 78 MW 55 MW as of FY25 23 MW to Goal 55 MW as of FY25 FY 2025 Demand Response 2027 Goal Demand Response 2035 Goal Demand Response • Customer-Sited Batteries • Expanding OEMs in Electric Vehicle Charging • Continue culture of innovation 8 Progress to Local Solar Goals MWs 400 350 300 250 200 150 100 50 0 Goal: 405 MW Reaching the 2035 Local Solar Goal 206 MW to Goal • Continue adding solar capacity yearly Installed: 199 MW Goal: 205 MW 6 MW to Goal 199 MW as of Q2 FY26 199 MW as of Q2 FY26 Solar Capacity as of Q2 FY 2026 2027 Goal Local Solar 2035 Goal Local Solar • Continue culture of innovation to expand access to solar and benefits of local solar generation • Improve customer interconnection experience 9 Exceeded Local Battery Storage Goal MW 275 250 225 200 175 150 125 100 75 50 25 0 Goal: 125 MW Total: 156.2 MW +140 MW in development 16.2 MW installed 2027 Local Battery Storage Installed: 16.2 MW Local Battery Storage as of Q2 FY26 Surpassing the 2027 Goal • Working with contractors to bring projects in development to commercial operation • Currently in talks for more utility-scale local battery storage for Council approval 10 Goals Progress Energy Efficiency Thermal Energy Storage Demand Response 89% 2027 Goal 75% 2030 Goal 71% 2027 Goal Local Solar Local Battery Storage 97% 2027 Goal 125% 2027 Goal 11 Implementation Project Highlights Battery Demand Response Pilot Objectives • Expand demand response portfolio • • Improve grid security Increase program flexibility (year-round program) • Serve as a dispatchable resource within load zone • Contribute to 2035 goal of 270 MW demand response Eligibility • Residential battery systems • No limits to system size or units per premise • Solar not required Total Enrolled Battery Systems/ Customers Total Enrolled Battery Units 121 212 Discharge Capacity 1.6 MW 13 Base Power Battery Agreement • Base installed their first systems in Austin Energy’s service area starting the last week of June. • Austin Energy is beginning to integrate the resources into its portfolio. • As Base installs more batteries for their customers, Austin Energy immediately adds those resources to the portfolio, making them available for dispatch. • Base expects to reach full system capacity of 40 MW by mid-to-late 2027. 14 Solar Standard Offer Program The Solar Standard Offer Program is Austin Energy’s innovative initiative to increase local solar adoption on commercial properties, building the capacity of the Community Solar Program. This program allows property owners to lease roof or parking space to solar developers, creating new revenue streams without upfront capital investments. 12 10 8 6 4 2 0 MWs 12 10 8 6 4 2 0 Community Solar Capacity Community Solar Capacity 5.5 MW Total Installed: 4.4 MWs 10 MW of Standard Offer Total: 9.7 MWs 5.3 MWs Pending Install 4.4 MWs FY 2024 FY 2024 Installed as of Installed Community Q2 FY 2026 Solar Capacity Community Solar Community Solar In Queue Capacity with Commercial Standard Standard Offer Offer Pending Installs 15 Transmission Projects Phase 1: New 138 Kilovolt Line Future Phase: Upgrade Lines to 345 Kilovolt • Adds ~200 MW electricity import capacity • Project could double import capacity along a key path • ERCOT reviewing project now • Expect to submit to ERCOT after • After approval, will file for state permit required to build line • Expected commercial operation: Summer 2029 Phase 1 approval • Earliest commercial operation: Summer 2031 Overall Impact • Increases how much electricity Austin Energy can bring into service area • Improves power system reliability • Prepares for future growth 16 Customer Driven. Community Focused. ©Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.