Posted on 02/15/2021 11:50:33 AM PST by george76
The spot price of wholesale electricity on the Texas power grid spiked more than 10,000% on Monday amid a deep freeze across the state and rolling outages among power producers, according to data on the grid operator’s website.
Real-time wholesale market prices on the power grid operated by the Electric Reliability Council of Texas (ERCOT) were more than $9,000 per megawatt hour late Monday morning, compared with pre-storm prices of less than $50 per megawatt hour, according to ERCOT data..
The surge reflects the real-time megawatt hour price of electricity and the cost of congestion and losses at different points across the grid. Early on Monday, ERCOT said extreme weather conditions forced many power generating units off the grid, upending the supply of electricity.
ERCOT did not respond to an email message about the spike in wholesale electricity prices.
On Feb. 10, well before inclement weather hit Texas, spot wholesale prices on ERCOT settled around $30 per megawatt hour at the end of the day, ERCOT data show. But on Sunday, the price per megawatt hour surged past $9,000 on the grid.
ERCOT can be more susceptible to wholesale price spikes because it does not have a capacity market, which pays power plants to be on standby during peak demand and weather emergencies, for example. ERCOT’s model means consumers are not paying for generation that may never be called into action.
But early on Monday, ERCOT said extreme weather conditions caused many generating units – across all fuel types – to trip offline and become unavailable. That forced more than 30,000 megawatts of power generation off the grid, ERCOT said in a news release.
Sorry — I don’t participate in the electricity spot market. I have a three-year contract.
I wonder how that resonates with people here in the past crowing at the fact Texas was its own grid, separate from the national grid?
Still OK in SW Michigan.
Have a 6KW generator and 10 gallons of gasoline, “just in case”.
If some electric company has to go into the spot market and buy 10 million dollars of juice to fulfill contract obligations and that comes from a line credit that they can’t carry, they have 2 choices, instant suicide or possible future slow death via hitting current customers with some one time emergency surcharge. What option do you think they will choose?
Look, the lefties have fled California for Texas and now Texans get to experience genuine California style rolling blackouts. Next: Mudslides, wildfires, and earthquakes coming to a Texas city near you!
It won’t be the customers. For the most part, it won’t be the REPs, either. It will be the electricity generators who were short electricity that will eat the loss. If it makes you feel any better, the electricity generators did bank some cash when they sold electricity they weren’t able to produce.
Happy I do not have a car that is fueled by electricity.
I guess this puts a damper on Global Warming.
Who is left holding the bag? Electricity generators who pre-sold electricity and now can't generate it. Those are the ones feeling the short-squeeze. What do you think would happen if some joker who owns a wind farm sends me a bill because he got caught up in a short squeeze? Meanwhile, I'll pay my REP on time.
Too bad soooo not sad
with a long extension cord to Earth.
= = =
Those extension cords are made in CHina.
See the realtime supply/demand chart at ERCOT.
An excellent reason to have mothballed gas/coal generation plants equal to wind/solar capabilities. The mothballed capabilities can be brought on line quickly.
That is very cool! Not the way it is in most areas I have lived in. Frankly, I never had seen that.
LMAO.
Pick a section of the country to go all renewable. Let them live with it for 10 years or so and then tell the rest of us how it worked out.
I think we have a taste of it at hand now. Let the games begin.
Wholesale power in CA costs about 5 cents not 40 cents. Are you comparing to retail?
“Wholesale power in CA costs about 5 cents not 40 cents. Are you comparing to retail?”
Yes.
Thanks for that inside baseball info. Very helpful to know.
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