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“We are expecting to have to rely more on renewables during peak conditions than we ever have before,” the CEO of ERCOT said.
“We will be relying on renewables to keep the lights on,” said Peter Lake, chair of the PUC. “On the hottest days of summer, there is no longer enough on demand dispatchable power generation to meet demand in the ERCOT system.”
Both the power agency and organization, respectively, said the peak demand for electricity will exceed the amount of on-demand dispatchable power. The state will rely on renewable energy during the hottest days this summer.
Lake said this is not an operational issue – it is a supply and demand issue.
“The landmark reforms passed last [legislative] session have been utilized and put in place to ensure our grid operates more reliably now than it ever has in the past,” Lake said. ” However, the Texas grid faces a new reality. Data shows for the first time that the peak demand for electricity this summer will exceed the amount we can generate from on demand dispatchable power. So, we will be relying on renewables to keep the lights on on the hottest days of summer.”
Last summer, ERCOT asked Texans to voluntarily conserve energy twice. The grid will be operating with the same amount of power this summer as last year – but with “a lot more Texans.”
“We saw several peak demand records set last set last year,” said Pablo Vegas, CEO of ERCOT. “We are expecting to have to rely more on renewables during peak conditions than we ever have before. And as a result of this dynamic, this summer could have tighter hours than last summer with a higher risk of emergency operations.”
Both said the highest risk periods in the summer months may be around 9 p.m., when the sun goes down and the wind decreases. The organizations said they will do everything they can to keep power on this summer, but they cannot control the sun and wind.
Still, ERCOT and the PUC said this shouldn’t cause alarm.
“The ERCOT grid is ready for this summer,” Lake said. “The reliability reforms that were put in place have been tested and continue to work. We’ve made the grid we’ve got as strong as possible using every tool available.”
On Wednesday, ERCOT released its Seasonal Assessment of Resource Adequacy for the ERCOT Region (SARA) report for Summer 2023. Lake said the report is not a forecast – it’s a scenario analysis that evaluates a range of potential outcomes. It is not a prediction of what will actually happen to the grid operationally.
At the Capitol, the House advanced a couple of bills involving the state grid.
House Bill 2263 by State Rep. Drew Darby advanced. The bill calls for local distribution companies to offer customers energy conservation or energy efficiency options and programs.
House Bill 4811 by State Rep. Rafael Anchia also passed. The bill calls for the creation of the Texas Energy Efficiency Council. The council would be responsible for increasing efficient energy use, reducing energy consumption during periods of peak demand, and implementing energy cost reduction measures.
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