Texas Is Failing To Fix The Grid (Again)

AI generated summary

The Texas electricity grid, managed by the Electric Reliability Council of Texas (ERCOT), faces significant challenges due to a lack of incentives for power generation companies to build sufficient plants for high-demand periods. For over 25 years, the Texas Legislature has failed to address this issue, resulting in an 'electricity only' market where generators earn revenue only when supplying power. This structure has led to an over-reliance on intermittent wind and solar energy, while the state has turned down offers to build new natural gas plants, exacerbating the problem.

Recent legislative proposals aim to require wind and solar farms to secure backup power, but the existing coal, natural gas, and nuclear plants are insufficient to meet peak demand. Additionally, the aging infrastructure of current power plants poses a risk, as many are nearing retirement. The ERCOT market has been criticized for allowing generators to manipulate supply to drive up prices, leading to significant overcharges for consumers. While other states have taken proactive measures to stabilize their grids, Texas has lagged behind, raising concerns about the influence of lobbyists and the need for legislative action to protect the interests of Texans.