ERCOT has some problems - May 16
Posted: Mon May 16, 2022 6:17 pm
The Texas Electricity Grid Operator, ERCOT, calls on residents to conserve power as six power generation facilities tripped offline
> According to ERCOT, the power-plant failures resulted in a total loss of about 2,900 megawatts, or around 2.9 GW, or enough power for 580k homes and businesses
> All of the power plants that failed were natural gas-fired power plants
> The Texas grid is being tested early in the summer season. On May 9, total demand on the grid reached 57.45 GW, only 2.8 GW shy of the all-time record reached on August 13, 2019
On Thursday, the Public Utilities Commission of Texas expressed concern that generators haven’t had enough time to perform seasonal maintenance ahead of summer and said that there is a risk of summertime maintenance amid stronger heat which could lead to supply shortages and potential blackouts
Forward prices for ERCOT electricity are pricing in a strained grid already, with most forward summer prices trading near their record high. The 3Q2022 ERCOT-Houston load zone real-time peak financial forward swap is trading near $204/MWh, in contrast with last year’s price of $64
> According to ERCOT, the power-plant failures resulted in a total loss of about 2,900 megawatts, or around 2.9 GW, or enough power for 580k homes and businesses
> All of the power plants that failed were natural gas-fired power plants
> The Texas grid is being tested early in the summer season. On May 9, total demand on the grid reached 57.45 GW, only 2.8 GW shy of the all-time record reached on August 13, 2019
On Thursday, the Public Utilities Commission of Texas expressed concern that generators haven’t had enough time to perform seasonal maintenance ahead of summer and said that there is a risk of summertime maintenance amid stronger heat which could lead to supply shortages and potential blackouts
Forward prices for ERCOT electricity are pricing in a strained grid already, with most forward summer prices trading near their record high. The 3Q2022 ERCOT-Houston load zone real-time peak financial forward swap is trading near $204/MWh, in contrast with last year’s price of $64