ULTRA LOW COST ENERGY STORAGE

FOR DATA CENTERS IN TEXAS

USING HD HYDRO®

HD Hydro offers a robust solution to address the extreme challenges facing ERCOT (Electric Reliability Council of Texas).


These challenges include a projected 30% increase in peak power demand, rising from approximately 80 GW to around 118 GW, driven by several factors:


Intense heatwaves
Severe winter storms
The expansion of data centers
Economic growth
Demographic shifts
The electrification of industry


This combination of changes presents significant supply risks for consumers and industries across Texas, with impacts predicted before 2030. While new solar PV installations can help alleviate daytime peak loads, they do not address the growing challenges during evening and morning hours.

A “duck curve” is emerging, where power prices during
the daytime are expected to approach zero, while
prices rise in the evenings and overnight due to the
higher costs of generation from natural gas sources.

The “duck curve” means that HD Hydro will drive up capture prices for the owners of the generators while also reducing evening and overnight prices for consumers, all while ensuring strong margins for HD Hydro asset owners.

Data Center Power Demand

At RheEnergise, in order to model a representative power demand from typical data centers, we use a simplified model that creates a power usage scenario of lower overnight demand, a morning and evening ramp and higher power demand during the day. This simplified assumption is representative of typical data center power usage.

RheEnergise’s Optimization Model

Our model enables the integration of multiple inputs, including grid,
wind, solar, diesel, natural gas, and onsite demand profiles.

The model’s core engine combines these variables with the objective of finding the optimal solution— balancing costs, capacity, duration, and utilization—for each technology input. The ultimate goal is to produce the lowest possible cost of energy for the specific data center in question.

Levelized Cost of Energy

Our optimization model case study, conducted for a data center in a location with high solar irradiance and a grid that incorporates large quantities of solar generation—such as is expected in West Texas by 2030—produced highly compelling results. In this scenario, the off-grid Levelized Cost of Energy (LCOE) is $83 per MWh, while the on-grid scenario is only $55 per MWh.


Contact RheEnergise to learn more.

For more information on how HD Hydro® can
enhance grid resilience, support renewable
integration, and drive economic growth in Texas,
we invite you to speak with one of our
representatives. Join our mailing list below or look at our investment opportunities.


We look forward to discussing how our
next-generation pumped energy storage projects
can help lower power costs and ensure a reliable,
sustainable energy future for Texas.