Renewables aided 2024 Texas summer power surge, winter challenges remain

[Jack Aylmer]

SOLAR POWER AND UTILITY SCALE BATTERIES HELPED THE TEXAS POWER GRID HANDLE EXTREME HEAT AND RECORD HIGH ENERGY CONSUMPTION LAST SUMMER.

BUT IT MAY NOT BE ENOUGH TO HANDLE FUTURE ENERGY DEMANDS AND POTENTIAL WINTER CHALLENGES.

IN THE SUMMER OF 2024, SOLAR ENERGY AND BATTERY STORAGE BROKE RECORDS FOR TEXAS.

SOLAR GENERATION CONTRIBUTED NEARLY 25% OF THE STATE’S MID-DAY POWER NEEDS BETWEEN JUNE AND AUGUST.

BATTERIES ALSO PLAYED A CRITICAL ROLE DURING EVENING HOURS, DISCHARGING TO FILL THE GAP LEFT BY DECLINING SOLAR OUTPUT WHEN THE SUN WENT DOWN.

IN LATE AUGUST, BOTH ENERGY SOURCES SET NEW RECORDS WHEN A LOAD PEAK WAS RECORDED.

UNLIKE IN 2023, TEXAS AVOIDED ISSUING ENERGY CONSERVATION APPEALS TO CONSUMERS THIS PAST SUMMER, SIGNALING INCREASED GRID RESILIENCE DURING THE WARMER MONTHS. 

HOWEVER, EXPERTS CAUTION THAT SOLAR AND BATTERY STORAGE, WHILE EFFECTIVE IN SUMMER, MAY FACE LIMITATIONS DURING THE WINTER.

THAT’S BECAUSE PEAK DEMAND IN WINTER OFTEN OCCURS EARLY IN THE MORNING WHEN SOLAR GENERATION IS UNAVAILABLE-

AND CURRENT BATTERY STORAGE CAPACITIES MAY STRUGGLE TO MEET EXTENDED DEMANDS DURING EXTREME COLD.

ADDITIONALLY, THE ELECTRIC RELIABILITY COUNCIL OF TEXAS PROJECTS SIGNIFICANT LOAD GROWTH IN THE COMING YEARS-

DRIVEN BY THE EXPANSION OF DATA CENTERS, INDUSTRIAL OPERATIONS, AND ELECTRIFICATION TRENDS. 

A REVISED FORECAST ESTIMATES PEAK SUMMER LOAD COULD REACH 148,000 MEGAWATTS BY 2030, FAR EXCEEDING THE 85,000-MEGAWATT PEAK RECORDED IN 2024.

MEETING THIS DEMAND WILL REQUIRE ADDITIONAL GENERATION CAPACITY-

BUT THE PREVIOUS SUCCESS OF SOLAR ENERGY AND BATTERY STORAGE MAY ACTUALLY MAKE IT MORE DIFFICULT TO BUILD ADDITIONAL INFRASTRUCTURE.

WHOLESALE ELECTRICITY PRICES IN TEXAS DROPPED SIGNIFICANTLY IN 2024 DUE TO INCREASED SOLAR AND BATTERY CAPACITY, BENEFITING CONSUMERS. 

HOWEVER, THESE LOWER PRICES MAY DISCOURAGE FURTHER INVESTMENT IN BATTERY STORAGE AND DISPATCHABLE POWER GENERATION. 

THE ENERGY-ONLY MARKET DESIGN OF TEXAS, WHICH COMPENSATES GENERATORS SOLELY FOR THE ELECTRICITY THEY PRODUCE, MAY REQUIRE ADJUSTMENTS TO INCENTIVIZE NEW CAPACITY AND ENSURE FUTURE GRID RELIABILITY.

TEXAS ISN’T CONNECTED TO OTHER STATES VIA A LARGER ENERGY GRID-

WHICH SOME HAVE BLAMED ON RESILIENCY ISSUES IN PAST TIMES OF GREATER ENERGY DEMAND.

ALTHOUGH THE FEDERAL GOVERNMENT RECENTLY PUT 360 MILLION DOLLARS TOWARD A PROJECT THAT AIMS TO CREATE A NEW LINK BETWEEN TEXAS AND THE NATIONAL POWER GRID-

EXPERTS EXPECT IT COULD TAKE ABOUT A DECADE TO COMPLETE.

TO GET MORE STORIES ABOUT U.S. ENERGY NEEDS, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.