Almost three years after rolling blackouts, the Electric Reliability Council of Texas says it has made progress, but the grid remains at risk. ERCOT Chief Executive Pablo Vegas spoke at an event organized by the trade group, U.S. Energy Association.
ERCOT says Texas set ten records for electricity use this summer. Vegas says the organization conducted a review that showed just one third was a result of the state recording its second hottest summer on record. Two thirds of the increase in demand was a result of population and business growth.
"That growth was something we were starting to get concerned about, how that was going to translate into the winter months," Vegas says.
Vegas says ERCOT has taken short-term steps to improve grid reliability such as providing incentives to reduce demand, warning the public when demand is approaching supply limits and mapping out the transmission system so businesses that supply power plants with fuel would not be affected by rolling blackouts.
"We're doing all the reliability things we've been doing the last couple years, which is very focused weatherization programs," Vegas says. "We're inspecting power plants, we're inspecting transmission facilities. It's part of a structured program ERCOT now does every season."
Vegas says ERCOT has also expanded its fuel supply program, but he says if a similar storm would hit this winter, there remains a 20% chance of emergency operations.
He says longer-term solutions will take years to complete. Those could include bringing older plants that have been mothballed back online and providing incentives to build new plants.
"The reality was the timing to do this was such we weren't able to see the market prepare demand response in time to be able to offer it this winter season," Vegas says. "The significant lesson learned was that in order to really leverage demand response more fully, we're going to have to give the market some time to work through how to develop and build it."
Jim Matheson, chief executive of the National Rural Electric Cooperative Association, says older plants are being forced offline before renewable power options can make up the difference.
"We really should be paying attention to the fact we've got older plants going offline that shouldn't be going offline," he says. "Electricity demand in this country is growing. Data centers and AI are going to continue to force that growth."
Matheson says over the next seven years, enough electricity to power 19 million homes will be taken offline. He says those plants will not have reached the end of their useful lives.
"I think it creates a huge risk for reliability," he says.
In October, the Biden Administration announced $3.46 billion from the Bipartisan Infrastructure Law would be used for the "Grid Resilience and Innovation Partnerships" program. The Department of Energy says the money will be used for 58 projects in 44 states "to strengthen electric grid resilience and reliability across America."
"Extreme weather events fueled by climate change will continue to strain the nation’s aging transmission systems, but President Biden’s Investing in America agenda will ensure America’s power grid can provide reliable, affordable power,” Energy Secretary Jennifer Granholm wrote in a statement announcing the grants.
“Today’s announcement represents the largest-ever direct investment in critical grid infrastructure, supporting projects that will harden systems, improve energy reliability and affordability—all while generating union jobs for highly skilled workers.”
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