Category Archives: ERCOT

Chairman Nelson Cannot Ignore Texas Wind’s Benefits and Condemn Its Cost

Wind technicians working atop a turbine in Sweetwater, Tex. Source: NY Times

Wind technicians working atop a turbine in Sweetwater, Tex.
Source: NY Times

Earlier this month, Texas Public Utility Commission (PUC) chairwoman Donna Nelson called for the federal government to end its renewable energy tax credit for Texas wind and for the end of state policies that have resulted in Texas’ clean energy economy boon. The chairman’s appeal is so devoid of a factual basis it is hard to conclude that this is anything other than part of an orchestrated campaign by fossil fuel interests to stop the growth of renewable energy. Like the other attacks on clean energy, this is more politics than substance.

The federal and state policies that Chairman Nelson wants to eliminate have been great for Texas. Texas ranks first in the nation for wind-related jobs, employing over 8,000—and many of those jobs are keeping agriculture-heavy West Texas and Panhandle communities afloat amid the devastating multi-year drought. Plus, 60% of all wind projects under construction across the country in the first quarter of 2014 were in Texas. And studies (including one produced by the Texas PUC) have shown that electricity prices are lower when more wind energy is installed on the power grid.    Read More »

Also posted in Green Jobs, Renewable Energy, Wind | Tagged , | 1 Response, comments now closed

Texas Wind Energy Continues to Blow Us Away

Source: katsrcool/Flickr

Source: katsrcool/Flickr

We have a lot to celebrate this Global Wind Day (June 15). Across the nation, wind energy accounted for almost one-third of new power capacity over the past five years and the American Wind Energy Association (AWEA) estimates that wind energy has the potential to double over the next few years.

Nowhere is the growth in wind energy more evident than in Texas, the nation’s top wind producing state. Texas' wind energy generation grew by 13% in 2013 and more than 60% of all wind projects under construction in the first part of the year were in Texas.

This success has been aided by the Renewable Energy Production Tax Credit (PTC), a modest tax credit for new facilities good for ten years after the wind farm’s start date. Like those received by the oil, gas, and nuclear industries, tax incentives help ignite growth in the market. EDF has strongly advocated for this incentive over the past few years.

Unfortunately, the breaks that oil and gas have received over the last 100 years are often (conveniently) ignored by those wanting to maintain the status quo, making the PTC a point of debate among politicians. Read More »

Also posted in Legislation, Renewable Energy, Wind | Tagged | Comments closed

Can Texas Keep the Lights On? Clean Energy Holds the Answer.

rp_Final-Images-EDF-6524-200x300.jpgOn Tuesday, I had the pleasure of participating on a panel hosted by the Texas Tribune that centered on the future of Texas’ power grid and electric reliability. Joining me was John Fainter, president and CEO of Association of Electric Companies of Texas, Inc; Trip Doggett, president and CEO of the Electric Reliability Council of Texas; and Doyle Beneby, president and CEO of CPS Energy, San Antonio's municipal utility. The panel, entitled Keeping the Lights on in Texas, took place at and was broadcasted from St. Mary’s University in San Antonio. It's a worthwhile watch and I'm encouraged that Texas Tribune is dedicated to investigating Texas' energy issues.

For about an hour, we discussed a variety of aspects in the current and future energy landscape of the Lone Star State. In particular, I focused on the exciting shift to give people power over their electricity use, save money, and help the environment with every flip of the switch.

Read More »

Also posted in Demand Response, Electric Vehicles, Energy Efficiency, Renewable Energy, Smart Grid, Solar, Texas Energy Crunch, Utilities, Wind | Tagged | Comments closed

UPDATE: Demand Response Helped Texas Avoid Rolling Blackouts in the Face of Polar Vortex

Good news for clean energy in Texas!

Source: KXXV

Source: KXXV

The Electric Reliability Council of Texas (ERCOT), Texas’ power grid operator, presented a report recently confirming what we already knew: demand response is a worthwhile investment that strengthens Texas' power grid.

Demand response is an innovative tool used by utilities to reward people who use less electricity during times of peak, or high, energy demand. In effect, demand response relies on people, not power plants, to meet the demand for energy. And on January 6th when the Polar Vortex hit Texas, it did just that.

Demand response kept the lights on in Texas by providing more than 600 megawatts of power to the electric grid within 45 minutes. Again on January 18th, demand response came to the power grid’s rescue, when a malfunctioning power plant failed to provide electricity despite mild temperatures and fairly low power demand. As noted before, this report highlights events that occurred during the winter of this year, at a time when Texans do not typically expect the power grid to be strained, unlike the summer. This means that a reduction in energy use – or negawatts – was able to stabilize the electric grid such that blackouts were avoided.

As shown in the report, ERCOT's Emergency Response Service is a reliability mechanism used during extreme events when the power grid is at risk of rolling blackouts. Part of the program is the procurement of demand response, which was only in the pilot phase last year, but has now been formally adopted. This program was utilized during the extreme weather events this winter and relied on the participation of hundreds of Texas businesses, schools, local governments and individuals. Read More »

Also posted in Demand Response, Smart Grid, Texas Energy Crunch | Tagged , | Comments closed

Demand Response Is the Best Cure for Texas’ Ailing Grid

Source: North America Power Partners

Source: North America Power Partners

The Texas Public Utilities Commission (PUC) has, yet again, kicked the can down the road on securing reliable energy to power the state’s growing population. The PUC, the state agency charged with managing electricity rates, meets to securely plan for the future, yet they continue to delay planning meetings. This will benefit no one in the short or long-run. To secure reliable power and safeguard against threats of blackouts, the PUC needs to keep pace with the times and leverage technologies that require little to no water, generate negligible carbon emissions, and can respond to the call for electricity.

Last week, the PUC decided to postpone indefinitely an important meeting, originally scheduled for May, to discuss Texas’ recent blackout scares. The PUC has been in a heated debate over Texas’ electricity market structure, and in the midst of backlash from stakeholders, they have decided to push the decision onto the Legislature in 2015. This is not necessarily in the best interest of the state. Texans were asked to conserve energy several times this winter after colder temperatures forced heating units to ramp up. This request to turn down thermostats for threat of rolling blackouts came at the same time the state power grid operator assured Texans that reliability is on the upswing. But it’s time Texas faces the facts. Read More »

Also posted in Demand Response, Renewable Energy, Smart Grid | Tagged , , | 1 Response, comments now closed

How Electric Vehicles Are Strengthening the Texas Power Grid and Improving Air Quality

Source: SAE

Source: SAE

San Antonio’s Southwest Research Institute (SwRI) brings Texas the latest example of an intelligent, demand-side resource that can play an active role in the power grid and offset the use of fossil-fuel power plants. Late last month, SwRI announced that its innovative vehicle-to-grid system got the green light from the Electric Reliability Council of Texas (ERCOT), the grid operator, to participate in the state’s electricity market. This system is able to control the charging and discharging for a fleet of electric delivery trucks, meaning that when the supply of electricity struggles to meet demand, the intelligent vehicle charging system can simply stop charging (thus lowering demand). This technology will significantly increase grid reliability, thanks to its quick response time, and effectively deter the need for firing up another dirty power plant.

In order to avoid a blackout, the supply of electricity to the power grid must equal the electric demand from customers. Conventionally, this balance is maintained by power plants that remain on stand-by, ready to respond at a moment’s notice. Every hour of the day, ERCOT precisely controls these power plants to keep the grid balanced. In the process, a power plant has to rapidly increase or decrease its power output, which decreases its efficiency and increases its carbon and pollution footprint, much like an a car revving its engine. Read More »

Also posted in Air Pollution, Demand Response, Electric Vehicles, Smart Grid | Tagged | Comments closed

Freezing, Scorching, or Not, Texas Needs More Demand Response

MaritaHeadshotAs we thaw out this week from our most recent arctic blast, Texas’ inexperience with ice and snow has been met with Internet memes and jokes. But dealing with extreme temperatures causes serious strain on our current energy system and exacerbates our “energy crunch,” signifying that the available supply of electricity barely meets the demand for that power.

However, as is typical of Texas, last week our weather was quite pleasant – in the 70s – and strains on the system due to weather events weren’t too much of a concern. Yet the Electric Reliability Council of Texas (ERCOT), the state agency charged with managing the flow of electricity for most of Texas, alerted an emergency situation despite mild temperatures. To avert disaster, ERCOT initiated demand response, “ask[ing] customers to raise thermostat settings to 78 degrees, typically a summer response intended to reduce demand from air conditioners.” A single malfunctioning power plant caused the problem. ERCOT declined to identify the plant involved. Read More »

Also posted in Demand Response, Extreme Weather, Smart Grid, Utilities | Tagged , , | Comments closed

Demand Response Helps Texas Avoid Rolling Blackouts in the Face of Polar Vortex

MaritaHeadshotAs we begin a new year, the outlook for 2014 looks bright.  But as the Polar Vortex has descended upon the U.S. over the last few days, we have been reminded of the past, specifically the winter of 2011 when Texas’ electricity grid stuttered under the extreme cold.

Monday, as a record-breaking cold snap whisked over the U.S., the Electric Reliability Council of Texas (ERCOT), the state’s grid operator, warned of possible blackouts, just as they did in 2011.  We were lucky this time, but in February of 2011 we were not, and blackouts occurred throughout the state.

ERCOT’s warning meant that the grid's power reserves “dropped below a comfortable threshold,” and the "system was just one step away from rolling blackouts” as the need for energy outpaced supply.  As these blackout threats loomed, two power plants succumbed to the cold and went down.  The loss in capacity amounted to about 3700 megawatts (MW), with 1800 MW lost due to the cold.  According to Dan Woodfin, ERCOT’s Director of System Operations, “if we had lost another unit it would have put us into an Energy Emergency Alert Three” – the stage that prompts rolling blackouts.  This is unnecessary and unacceptable. Read More »

Also posted in Demand Response, Extreme Weather, Renewable Energy, Texas Energy Crunch, Wind | Tagged , , | Comments closed

Debate Over a Changing Texas Energy Market Heats Up at Senate Natural Resources Committee Hearing

Marita Mirzatuny

This commentary originally appeared on EDF's Energy Exchange blog.

Over the past two years, Texas’s changing energy landscape has been a focus of EDF’s work.  In our Texas’ Energy Crunch report from March 2013, we highlighted that Texas has a peak capacity constraint – meaning that the power grid becomes strained when, for example, everyone is using their air conditioning units on hot summer afternoons.  This challenge, coupled with increased climate change and drought, signal the need to prepare by adopting a smarter grid and cleaner resources.

The Public Utilities Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) have been engaged in this conversation and various proposals have been laid on the table to determine what Texas’ energy future will look like.  EDF maintains the position that, whatever reforms are made, customer-facing, demand-side resources – defined here as demand response (DR), renewable energy, energy efficiency and energy storage – must play a key role to ensuring reliability, affordability, customer choice and environmental improvements.

Energy-Only Status Quo or Capacity Market or…?

Texas’ current energy-only market structure pays power plants only for the energy they produce.  This is beneficial in that generators are not overcompensated, but the downside is that energy companies aren’t incentivized to build in Texas and energy management providers (DR companies) are not viewed as equal players.  Energy prices are low due to an upsurge in cheap, abundant natural gas and wind – and without a guarantee for a high return on investment, companies will not take the risk of constructing costly new power plants. Read More »

Also posted in Demand Response, Energy Efficiency, Renewable Energy, Smart Grid, Texas Energy Crunch | Tagged , , | Comments closed

Energy And Water Are Running Out In Texas, But It’s Not Too Late

This post originally appeared on EDF's Energy Exchange blog.

As we’ve highlighted in previous posts, water and energy regulators often make decisions in silos, despite the inherent connection between these two sectors. Texas is no exception.

Two very important and intertwined events are happening in Texas right now.

First, the state is in the midst of an energy crunch brought on by a dysfunctional electricity market, drought, population growth and extreme summer temperatures. An energy crunch signifies that the available supply of power barely exceeds the projected need (or demand) for electricity. Texas’ insufficient power supply makes the whole electricity system vulnerable to extreme weather events. An especially hot day (with thousands of air conditioning units running at full blast) could push the state over the edge and force the Electric Reliability Council of Texas (ERCOT), the institution charged with ensuring grid reliability, to issue rolling blackouts.

Second, Texas is still in the midst of a severe, multi-year drought, forcing state agencies to impose strict water restrictions throughout the state. The drought has already had a devastating impact on surface water and many communities are facing critical water shortages.

Although Texas has always had to deal with extreme weather events, we can anticipate even more intense weather as climate change advances. The new climate ‘normal’ makes extreme heat waves, like the historic 2011 Texas summer, 20 times more likely to occur. These extreme weather events heighten the urgency of the energy-water nexus. Read More »

Also posted in Climate Change, Demand Response, Drought, Energy Efficiency, Energy-Water Nexus, Environment, Extreme Weather, Renewable Energy, TCEQ, Texas Energy Crunch, Utilities | Tagged , | Comments closed
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