GridStor Executes Tolling Agreement and Begins Construction on Major Texas Battery Storage Project
GridStor, a leading developer and operator of utility-scale battery energy storage systems in the United States, has announced the execution of a tolling agreement with a Fortune 500 company for its Gunnar Reliability Project, a large-scale battery energy storage facility located in Hidalgo County, Texas. The project, which has officially entered the construction phase, will deliver 150 megawatts (MW) of power capacity and 300 megawatt-hours (MWh) of energy storage. Commercial operations are expected to begin by the end of 2026.
The announcement marks another milestone for GridStor as it continues to expand its footprint across Texas, one of the fastest-growing power markets in North America. The Gunnar Reliability Project is designed to strengthen grid reliability in the Lower Rio Grande Valley while supporting the state’s rapidly rising electricity demand driven by population growth, industrial expansion, and data center development.
Supporting Reliability Amid Rising Power Demand
Texas has experienced unprecedented growth in electricity consumption over the past several years, a trend that is expected to accelerate through the end of the decade. According to forecasts from the Electric Reliability Council of Texas (ERCOT), the state’s grid operator, peak electricity demand is projected to rise by more than 50 percent by 2030. This growth is largely fueled by large industrial users, advanced manufacturing facilities, and energy-intensive data centers, in addition to continued residential and commercial development.
Battery energy storage systems play a critical role in addressing these challenges by storing electricity during periods of low demand and releasing it when demand is highest. These systems help balance supply and demand, stabilize the grid during extreme weather events, and reduce the risk of outages during peak usage hours.
“At a time of rapidly increasing power demand, battery energy storage helps ensure affordable, reliable power to households and businesses in the Lower Rio Grande Valley,” said Chris Taylor, Chief Executive Officer of GridStor. “We are proud to deepen our commitment to building battery storage facilities that help Texas sustain its historic economic expansion while delivering cost-effective electricity to communities and businesses across the state.”
Strategic Tolling Agreement with a Fortune 500 Partner
The tolling agreement executed for the Gunnar Reliability Project represents a long-term commercial arrangement under which the Fortune 500 counterparty will secure access to the battery system’s capacity and operational flexibility. While specific financial terms of the agreement were not disclosed, such arrangements are increasingly common in competitive power markets like ERCOT, providing stable revenue streams for storage developers while offering customers predictable access to dispatchable power capacity.
For large corporate energy buyers, tolling agreements offer a way to hedge against price volatility, manage peak power costs, and enhance energy reliability without directly owning or operating infrastructure. For GridStor, the agreement underpins the project’s financial viability and demonstrates strong market confidence in battery storage as a core component of modern power systems.
Economic Impact and Job Creation
Beyond its grid benefits, the Gunnar Reliability Project is expected to deliver meaningful economic impact to the local community during construction and beyond. GridStor estimates that more than 100 jobs will be supported during the construction phase, including skilled tradespeople, technicians, and apprentices. These roles will contribute to workforce development in the region while generating local economic activity through construction spending and related services.
Once operational, the facility will enhance the resilience of the Lower Rio Grande Valley portion of the ERCOT grid. The project is expected to provide power equivalent to serving approximately 95,000 average Texas households during periods of highest electricity demand, helping to reduce strain on the grid and improve overall system stability.
Strengthening Grid Resilience in South Texas
South Texas has become an increasingly important area for grid investment, particularly as extreme weather events place additional stress on power infrastructure. Battery energy storage systems like the Gunnar Reliability Project can respond almost instantaneously to fluctuations in supply and demand, making them especially valuable during heat waves, cold snaps, and other periods of grid stress.
By absorbing excess generation and discharging power when needed most, battery storage helps mitigate price spikes and reduces reliance on less efficient peaking power plants. These capabilities align closely with ERCOT’s long-term goals of maintaining grid reliability while supporting continued economic growth across the state.
Expanding GridStor’s Texas Portfolio
Once completed, the Gunnar Reliability Project will become GridStor’s second operating battery energy storage facility in Texas. Earlier this year, the company successfully brought its Hidden Lakes Reliability Project online in Galveston County. That facility, with a capacity of 220 MW, represents one of the larger battery storage projects currently operating in the state and has already begun contributing to grid stability during periods of high demand.
Together, these projects underscore GridStor’s commitment to Texas as a key market for energy storage investment. The company views the state’s competitive wholesale market structure, strong demand growth, and increasing need for flexible grid resources as ideal conditions for the deployment of large-scale battery systems.
Backed by Institutional Investment
GridStor is backed by Goldman Sachs Asset Management, providing the company with significant financial resources and institutional expertise to support large-scale infrastructure development. With this backing, GridStor has assembled a development pipeline exceeding 3 gigawatts (GW) of battery storage projects that are either in later-stage development or under construction across the western and central United States.
The company’s strategy focuses on delivering near-term, cost-effective energy solutions for utilities, data centers, and large industrial customers operating in regions with rapidly growing electricity demand. By prioritizing projects that can be deployed quickly and integrated efficiently into existing grids, GridStor aims to play a central role in strengthening the reliability and resilience of the U.S. power system.
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