August 22

Texas Faces Growing Electricity Needs

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Texas set an unofficial record for electricity use on Tuesday, driven by increased air conditioning demand during the August heatwave.
ERCOT, the state’s grid operator, has not issued calls for energy conservation this year despite the record demand.
The grid operator anticipates that electricity demand in Texas could double within six years due to population growth and increased demand from data centers.

Texas used a record amount of electricity on Tuesday, the Electric Reliability Council has reported, noting that the data has yet to be made official after calculating meter readings.

Bloomberg said in a report on the news that the record was driven by higher demand for air conditioning amid August temperatures. The publication also recalled that this year’s summer in Texas is still cooler than the summer of 2023, when demand for electricity broke record on 21 occasions.

Earlier in the year, ERCOT forecast that electricity demand in the Lone Star State could double in six years, necessitating the urgent addition of more generation capacity. According to a report in the Texas Tribune, the forecast was based on expectations of higher demand from data center operators and the continuing growth in the state’s population.

“All of that is putting together a picture of a very significant, different demand growth that is forcing us to really re-think how we’re looking at planning to make sure we can meet those needs and continue to deliver on the expectations of all Texans,” ERCOT president Pablo Vegas told state legislators in June.

The good news in the situation is that this year ERCOT appears to have been much better prepared to handle the occasional surges in electricity demand. The Houston Chronicle reported this week that despite expectations of record demand, ERCOT had not issued a call for energy conservation. “We expect to have adequate supply to meet demand today,” ERCOT’s president said on Tuesday.

“Over the last year, we see significant additions of energy storage resources, solar resources and wind resources, with a few additions also on the gas side. All of that has helped to contribute to less scarcity conditions during the peak periods of the summer,” the top executive also said.

By Charles Kennedy for Oilprice.com

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