Dive short:
- The electric grid in Texas is setting a record for the highest peak demand next week, as a cold kit is expected to increase heating consumption. The Texas Electrical Reliability Board released a new winter record high on Monday morning.ERCOT) warned Thursday.
- The network operator also sent a message to market participants on Monday warning the generators to ‘get ready to save fuel to serve the highest load, and ERCOT of any known or expected fuel restrictions. “
- ERCOT’s the current winter peak record is 65,915 MW, set in January 2018. The network operator released a Seasonal Assessment of Resource Adequacy (SARA) report in November that predicts a demand for the 57,699 MW winter peak of the season.
Dive insight:
The November SARA report identified nearly 83,000 MW of resource capacity that ERCOT would expect to be available to reach the winter peak. But Texas is experiencing a string of cold temperatures that are expected to run out next week, and the network operator wants to be prepared.
“This nationwide weather system is expected to provide Texas with the coldest weather we have experienced in decades,” Bill Magness, president and CEO of ERCOT, said in a statement. “With a rapid drop in temperature, we are already seeing a large electrical usage and we expect the record breaker in the ERCOT region to be expected.”
A higher peak demand could push up the price of electricity in Texas. When the state set its record demand record in January 2018, prices were briefly over $ 2,200 / MWh.
According to ERCOT to market participants, the network operator expected the temperature to remain at 32F or below from Thursday to Monday. Generators were asked to review fuel supplies, notify ERCOT “of any known or expected fuel constraints”, identify the planned outages and “consider delaying maintenance or returning early.”
Market participants were also asked to review and apply winterization procedures, and to notify ERCOT of “any changes or conditions that may affect the reliability of the system.”
ERCOT also said it was working with transmission operators to “reduce transmission interruptions that could reduce the availability of generation or otherwise affect the system’s ability to meet demand.”
The Public Utility Commission of Texas (PUCT) issued a statement saying it “worked closely with government agencies, ERCOT and other organizations across the power industry to prepare for adequate resources in the coming days.”
“The falling temperatures forecast for the next few days will place a huge demand on the ERCOT network,” said DeAnn Walker, chairman of PUCT. “The reaction of the electrical system under voltage will, as always, require considerable coordination.”
A spokesman for Oncor Electric said the state’s biggest benefit is monitoring the weather, and has the resources and staff to address any disruptions. “Right now, generators across the state are producing enough power to meet demand,” Kerri Dunn said in an email.
ERCOT is usually a summer peak system powered by air conditioning. The system’s record high of 74,820 MW was set in August 2019.