Recently, the supply and demand situation on Texas’s electrical grid was precariously close, leading to concerns about possible power outages.
This marked the 11th day that the Electric Reliability Council of Texas (ERCOT) urged residents to conserve energy, and for the first time since the severe winter storm, the agency entered Energy Emergency Alert Level 2 on Wednesday evening.
Prior to the alert, RIOT, a Bitcoin mining company, announced it had received nearly $32 million in Power and Demand Response Credits for August 2023. Jason Les, the CEO of Riot, noted, “August was a landmark month for Riot, demonstrating the advantages of our unique power strategy.”
Daniel Cohan, an Associate Professor of Environmental Engineering at Rice University, remarked, “Wednesday night was the closest call we’ve had since 2021.” This situation was primarily triggered by a frequency dip that occurred between 7:00 and 8:00 pm on the same evening.
In their statement, ERCOT confirmed the issuance of an Energy Emergency Alert Level 2 (EEA 2) to maintain grid reliability. They emphasized that power outages were not required. The alert was initiated to stabilize system frequency due to low power reserves, as grid frequency needs to remain between 59.9 Hz and 60.1 Hz at all times. During the incident, the frequency dropped to 59.77 Hz. Entering EEA 2 allowed ERCOT to access additional reserves to restore and maintain frequency—a drop attributed to various factors, not a thermal unit failure as speculated.
The low power reserve was influenced by several elements, including sustained high temperatures, record demand for September, decreased wind output, diminished solar generation at day’s end, and transmission limitations in South Texas that restricted power flow to the broader grid.
To address the transmission issue, the ERCOT Board of Directors approved the CPS Energy-San Antonio South Reliability Regional Planning Group Project in August, which aims to enhance long-term system reliability and reduce congestion in South Texas. This project still requires Public Utility Commission approval. Meanwhile, ERCOT is collaborating with local transmission owners to explore short-term solutions to mitigate these restrictions.
CPS Energy CEO Rudy Garza shared a video Thursday night thanking customers for their understanding.
As temperatures continue to rise, demand has hit record levels for September. Cohan noted, “The high demand is resulting in near overlap of supply and demand, creating less than ideal grid conditions.” Texas has already experienced over 70 days with temperatures exceeding 100 degrees in 2023. State Climatologist John Nielsen Gammon reported, “The average temperature for San Antonio this summer was a record-high 88.7 degrees Fahrenheit; higher temperatures lead to increased demand.”
To meet this demand, Cohan highlighted the significant role of solar energy. “Without solar power supporting the grid, we would have faced continuous blackouts,” he stated.
According to Stephen Galaviz of Freedom Solar Power, “One megawatt hour can power about 200 homes. Solar energy and renewables contribute to grid stability, allowing individual homeowners to participate in this effort.”
ERCOT has capped the price per megawatt hour at $5,000. Economist Ray Perryman explained, “Prices are determined by the last unit purchased, which often shifts from renewable sources to natural gas and other forms of energy in extreme weather. Consequently, prices tend to increase under these conditions.”