Electricity prices in Texas spiked to $9,000 per megawatt hour (Mwh) this week as temperatures hit 100 degrees Fahrenheit, fueling demand for alternative energy and storage technologies.
The Electric Reliability Council of Texas warned that the state is likely to experience shortages this week as power use will climb over 73,000 MW on Thursday as residents blast air conditioners. The power supply cushion has fallen close to 2,500 MW, or less than 5% of total demand for the state, a worrisome level of backup supply.
Power use records may be broken in coming days as a heat wave bakes the Southwest. Temperatures are expected to top 100 degrees in Southern California and Arizona in coming days.
Wholesale electricity prices soared above $6,000 MWH across the state on Monday, according Intercontinental Exchange, from an average of $62.26 over the last six months. The National Weather Service has issued a heat advisory as maximum temperatures in major Texas cities, like Dallas, are forecast to stay close to 100 degrees over the next two weeks.
- Texas may not generate sufficient power, leading to calls for power storage alternatives.
- Wind farms make up to a quarter of generation capacity in Texas.
- Investments in renewables like solar and wind are on the rise across the state and likely to remain active.
- Karma Takeaway: The sharp rise in power prices will fuel new investments in solar and wind farms linked to specific customers as well as better storage solutions.
