The Texas Energy Fund is providing immediate help to build new dispatchable power generation, countering EPA's heavy-handed regulations designed to eliminate new natural gas generation
Good article - and I am glad we are getting more gas for now
But I hate that the State of Texas has had to become a bank - not anything I think a state should do and I hate that that fund will expand. This is a patch at best and does not solve the situation.
If the amount of solar on the EROCT interconnect actually gets built, (155GW) - we still have a mess of a grid to work around, then more transmission and screams (already started) for Ercot interconnection.
So no problem solved in real life and it will end up being more expensive for us as the end consumer.
They need to stop the patching and more patching of their legislative mistakes.
We cannot endlessly just keep allowing whoever wants to be a generator on the grid - (we no longer have a free market system, so lets admit it and move on) there needs to be some rules "for the public good"... (lord...I hate that statement!).... but in this case I think it is time to say how much of each generation type has what percentage of generation on the grid - then let them all bid for a slot and we then will get cheaper prices in the long run.
If Texas stands behind their generators, maybe the banks will fall n line too!
Time to take a stand - we are much bigger than most countries and we don't have to follow Europe's path to de industrialization or the federal governments.
I agree with everything you said, JF. I too, am not a fan of Texas becoming a bank, but Texas created a system that is as close to a free market as possible, and the EPA has now changed the rules, so the market is no longer free, so Texas has to do whatever is necessary. I also agree that there needs to be rules designed to keep ERCOT stable because Federal subsidies for wind and solar are destroying every grid in the US. Coupled with EPA's no natural gas generation after 2039 rule, meaning it starts now, the State of Texas has no choice but to subsidize Nat gas to level the playing field.
Good point about the Texas financial support perhaps will nudge banks to fall in line.
On your point about power becoming more expensive, all the battery storage slated to come online will definitely increase costs.
The main issue with ERCOT is one of market design. ERCOT is, with a few minor exceptions, an energy only market where the MWh's are bought and sold at a price set by the supply and demand for the electricity on a more or less instantaneous basis. The introduction of intermittent wind and solar coupled with the wide intraday and seasonal variations of demand create wild swings in pricing from negative prices (mostly in shoulder periods when wind and solar production exceeds demand) to over $5,000/MWh (mostly in peak summer late afternoons when the wind isn't blowing and the sun is beginning to set). Introducing a capacity market and ancillary services market (voltage support, low voltage ride-through capacity, etc.) would allow generation sources that can provide power when it is needed (capacity) and grid support (ancillary services) when it is needed to get paid for it contractually. This would make new gas-fired generation more financeable and eliminate the need for the State of Texas to have to offer financial incentives.
Good for Texas! I take it they are counting on winning at the supreme court level (or by an executive order or congressional action under a new president) if the EPA tries to stop them ?
You are correct, Al, that Texas really does not have a choice because EPA has changed the rules. I believe we will see both things you mentioned: the Supreme Court blocking the EPA rules and congressional action under a new president. God help us otherwise.
Good article - and I am glad we are getting more gas for now
But I hate that the State of Texas has had to become a bank - not anything I think a state should do and I hate that that fund will expand. This is a patch at best and does not solve the situation.
If the amount of solar on the EROCT interconnect actually gets built, (155GW) - we still have a mess of a grid to work around, then more transmission and screams (already started) for Ercot interconnection.
So no problem solved in real life and it will end up being more expensive for us as the end consumer.
They need to stop the patching and more patching of their legislative mistakes.
We cannot endlessly just keep allowing whoever wants to be a generator on the grid - (we no longer have a free market system, so lets admit it and move on) there needs to be some rules "for the public good"... (lord...I hate that statement!).... but in this case I think it is time to say how much of each generation type has what percentage of generation on the grid - then let them all bid for a slot and we then will get cheaper prices in the long run.
If Texas stands behind their generators, maybe the banks will fall n line too!
Time to take a stand - we are much bigger than most countries and we don't have to follow Europe's path to de industrialization or the federal governments.
rant over....
I agree with everything you said, JF. I too, am not a fan of Texas becoming a bank, but Texas created a system that is as close to a free market as possible, and the EPA has now changed the rules, so the market is no longer free, so Texas has to do whatever is necessary. I also agree that there needs to be rules designed to keep ERCOT stable because Federal subsidies for wind and solar are destroying every grid in the US. Coupled with EPA's no natural gas generation after 2039 rule, meaning it starts now, the State of Texas has no choice but to subsidize Nat gas to level the playing field.
Good point about the Texas financial support perhaps will nudge banks to fall in line.
On your point about power becoming more expensive, all the battery storage slated to come online will definitely increase costs.
Thanks for your great comments as always, JF. Ed
The main issue with ERCOT is one of market design. ERCOT is, with a few minor exceptions, an energy only market where the MWh's are bought and sold at a price set by the supply and demand for the electricity on a more or less instantaneous basis. The introduction of intermittent wind and solar coupled with the wide intraday and seasonal variations of demand create wild swings in pricing from negative prices (mostly in shoulder periods when wind and solar production exceeds demand) to over $5,000/MWh (mostly in peak summer late afternoons when the wind isn't blowing and the sun is beginning to set). Introducing a capacity market and ancillary services market (voltage support, low voltage ride-through capacity, etc.) would allow generation sources that can provide power when it is needed (capacity) and grid support (ancillary services) when it is needed to get paid for it contractually. This would make new gas-fired generation more financeable and eliminate the need for the State of Texas to have to offer financial incentives.
Good for Texas! I take it they are counting on winning at the supreme court level (or by an executive order or congressional action under a new president) if the EPA tries to stop them ?
You are correct, Al, that Texas really does not have a choice because EPA has changed the rules. I believe we will see both things you mentioned: the Supreme Court blocking the EPA rules and congressional action under a new president. God help us otherwise.
Thanks for your comments, Al. Ed