Texas Electricity Generators Remain Resilient, Avoid Outages Amid Winter Snap: EIA

Power plants and electricity assets in Texas increased output to meet higher demand, during a cold weather snap earlier this month, according to a Feb. 14 report from the U.S. Energy Information Administration. Power generators, so far this year, have remained resilient and have avoided widespread power outages, like those witnessed in February 2021, when extreme cold interrupted the supply of electricity in Texas.

During the most recent cold outbreak, actual demand for electricity in the Electric Reliability Council of Texas peaked at 68,862 megawatt hours (MWh), below the peak actual demand of 69,215 MWh during the February 2021 winter storm. Furthermore, actual demand on the peak day (Feb. 4) was significantly lower than the grid operator’s day ahead forecast due to temperatures being warmer than anticipated.

The storm this winter did not cause significant declines of natural gas production in Texas, and natural gas fired power plants maintained their fuel supply, amid the cold weather. Furthermore, renewable generation, mainly wind, retained a firm level of output, amid the coldest periods this winter, when demand for heating peaked. Coal fired, and nuclear units did not experience outages and ensured robust supply production. As a result, prices on the wholesale market remained relatively stable and were valued below the $100/MWh.

During the February 2021 winter storm, below seasonal normal temperatures, and widespread outages of gas, nuclear and coal plants led to lower electricity supply.  Accordingly, prices peaked as high as $9,000/MWh in the wholesale electricity market. In order to avoid a similar scenario this year, ERCOT undertook a number of actions to ensure grid reliability in the event of colder-than-normal weather during 2022. Some of the actions include: assessments of generating and transmission assets for weatherization, evidence of weather readiness from generation/ transmission equipment owners, increasing operational reserve, obligation for certain on-site fuel supply and impromptu testing of generation resources.

Texan electricity assets have passed their first major test of this winter and credit can be credited to ERCOT for their preparation this winter, following adverse events in February 2021.