Interested in Utility Scale Renewables ? Delve into ERCOT

[mspohr]

https://www.washingtonpost.com/business/2021/03/19/texass-chief-energy-regulator-fiercely-defended-fossil-fuels-after-historic-blackouts-she-also-profits-oil-gas/

Critics say the ownership stakes reflect a conflict of interest for the Craddicks and exemplify a major ethics loophole in Texas, where regulators are allowed to have financial interests in the companies they oversee, unlike in some other oil-rich states. The ties are also newly relevant in light of last month’s blackouts, which left more than 9 million Texans without power and may turn out to be the costliest weather event in the state’s history.
Adrian Shelley, director of the advocacy group Public Citizen’s Texas office, said regulatory agencies in the state are “explicitly in service of industry.” He added that in the absence of robust conflict-of-interest laws preventing such situations, many Texans assume energy regulators are controlled by oil interests.

 

[mspohr]

Texas agencies are fighting release of documents related to power grid emergency

Government entities are seeking to keep some documents from public view that could shed light on last month's failure of the electricity grid.

www.statesman.com

But government entities at the center of the calamity are withholding documents that could shed light on how it happened.

In addition, many private companies that generate, distribute or deliver electricity on the grid — including Calpine Corp., Vistra Corp. and ExxonMobil — have weighed in with legal briefs supporting efforts to keep documents that touch on their businesses secret.

Tim Morstad, associate state director of the consumer advocacy group AARP Texas, called the reluctance by government entities to provide information troubling but also par for the course in a system that he said is designed to be more attuned to the needs of private companies than to Texas residents.

"The electric market in Texas is set up to serve the energy industry and not the public interest," he said.

"We need transparency to see how this all played out — the details of who knew what (and) when and the actions that were taken need to have the light shined on them," Morstad said.

 

[mspohr]

For 20 years, ERCOT has been a misbehaving, secretive, arrogant, even criminal grid operator

The culture of ERCOT, the Texas electric grid operators, has been secretive, arrogant and troubled since deregulation occurred 20 years ago, Watchdog Dave...

www.dallasnews.com

ERCOT, the operator of the Texas electric grid, has been a problem child since the state’s electricity market was deregulated at the turn of the century.

When it comes to the Electric Reliability Council of Texas, incompetence and lack of accountability and oversight is nothing new.

If you know your history, you shouldn’t be surprised about what happened in last month’s cold-weather catastrophe.

The power to bring us electricity rests in the hands of a nonprofit, mostly invisible group whose leaders claimed we were a mere 4 minutes and 37 seconds from a massive blackout that could have shut the grid down for months.

 

[SageBrush]

ERCOT, the operator of the Texas electric grid, has been a problem child

Whatever.

What's the latest news ? Who is paying (or not paying) the bills ?

 

[mspohr]

Gizmodo: What In Tarnation Are Texas Power Companies Hiding?. What In Tarnation Are Texas Power Companies Hiding?
“I think what’s driving this is every major law firm in the state and the country has lined up to sue ERCOT and many of the utilities on the grid,” Hirs said. “Right now, law firms are looking for the companies that profited from the debacle, and they’re looking for those that have a positive balance sheet.” The suits have already started coming. In addition to the two aforementioned lawsuits against Griddy, the family of a Dallas man who died of hypothermia in his home during the blackouts filed suit in mid-March against ERCOT and Oncor Energy Delivery, the electric provider in his area. At least 111 people died during the storm. The looming legal crisis at several levels, Hirs noted, could prove incredibly expensive for ERCOT and power providers.

 

[mspohr]

The wonders of the Texas free market

Power Scare Shows Texas Grid Still at Risk After Blackouts​

Power Scare Shows Texas Grid Still at Risk After Blackouts

Texas faced a brief power-grid scare Tuesday night, less than 60 days after widespread blackouts left millions without light and heat for days during a deep winter freeze.

www.bloomberg.com

The grid operator, the Electric Reliability Council of Texas, asked for conservation for nearly four hours with a quarter of generators down for repairs and a mild cold front failing to reduce electricity demand as much as had been anticipated, leaving supply tight. Wholesale electricity prices jumped as high as 10,000% in some parts of the state.

 

[SageBrush]

Wholesale electricity prices jumped as high as 10,000% in some parts of the state.

Spot wholesale prices.

If Texans learn to conserve during these events their system will work. Otherwise their rates will skyrocket or the distributors will throw up their hands and either declare BK or demand forced load management.

I presume you think this is just more rapacious speculation and market manipulation ala Enron but the underlying issue is balancing supply to demand. The problem will not go away with more RE, and there are good reasons to think it will become more acute.

Interesting times for Texas for sure, but part of their story that is not directly linked to free-wheeling capitalism will also play out elsewhere.

 

[mspohr]

Spot wholesale prices.

If Texans learn to conserve during these events their system will work. Otherwise their rates will skyrocket or the distributors will throw up their hands and either declare BK for demand forced load management.

Interesting times for Texas

I think Texas needs to come up with a better way to regulate electricity supply and prices. Clearly what they are doing is not working (except for the power generators). Consumers shouldn't have to become expert at power management to avoid financial ruin. Ideally they should be able to rely on a steady stream of reasonable priced electricity without having to become expert day traders in the electricity market.

 

[SageBrush]

Consumers shouldn't have to become expert at power management to avoid financial ruin.

Hyperbole.

Of course, they can always choose the CA route and just pay 20 - 40¢ per kWh year round. And before you guess that works out cheaper than the Texas poker game, consider that residential consumption is ~ 2x of California if not 3x.

The underlying issue in Texas is horrible building standards that lead to very high baseline consumption and monster consumption during weather excursions.

 

[nwdiver]

Consumers shouldn't have to become expert at power management to avoid financial ruin.

I don't know about being an expert but not being hopelessly ignorant would help. I'm guilty of this too although I think our education system bears some blame. I remember leaning about heat pumps when I was ~24. Seems like maybe basic energy stuff could be useful to teach in high school. The degree of ignorance is truly astounding. ~90% of people think they just pay money to make that magic hole in their wall do stuff..... people have told me how they turned down the volume in their car when they get range anxiety so they can drive farther...... it's no wonder Aliens don't visit us.......

 

[SageBrush]

it's no wonder Aliens don't visit us.......

LOL !!

 

[CrazyRabbit]

...
The problem will not go away with more RE, and there are good reasons to think it will become more acute.

agree, it will become more acute until Texas builds 12Gw more nuclear...

 

[nwdiver]

agree, it will become more acute until Texas builds 12Gw more nuclear...

For $180B? Do Texans hate money that much?

If the goal is reliability wouldn't 15GW of gas turbines for ~$15B be better? If the goal is to burn less fuel wouldn't more RE be better? 12GW of nuclear would reduce fuel burn by ~100TWh/yr. 30GW of wind can do that for ~$30B. So..... why spend $180B on nuclear when $45B on RE + Gas Turbines accomplishes the same goal at 1/4th the price.

 

[21EV]

For $180B? Do Texans hate money that much?

If the goal is reliability wouldn't 15GW of gas turbines for ~$15B be better? If the goal is to burn less fuel wouldn't more RE be better? 12GW of nuclear would reduce fuel burn by ~100TWh/yr. 30GW of wind can do that for ~$30B. So..... why spend $180B on nuclear when $45B on RE + Gas Turbines accomplishes the same goal at 1/4th the price.

In our current landscape I think a mix of generation is called for. As renewables and storage options mature we can shift more to those but each type has its advantages and disadvantages. One of the advantages of coal and nuclear for instance is the amount of fuel that is on-site that helps weather supply disruptions.

 

[nwdiver]

In our current landscape I think a mix of generation is called for. As renewables and storage options mature we can shift more to those but each type has its advantages and disadvantages. One of the advantages of coal and nuclear for instance is the amount of fuel that is on-site that helps weather supply disruptions.

I agree. We need Wind, Solar and Gas Turbines. Hopefully soon those gas turbines will be powered by H2 created by surplus wind and solar. But we have a finite supply of resources and man-power. Squandering them on obsolete thermal plants that cost $15/w and take 10 years to build is insanely counter-productive. If it was really that critical we can also store the fuel for gas turbines on-site but it's generally not going to be worth the cost (Still an order of magnitude cheaper than nuclear). It's cheaper just to winterize the pipelines or add more transmission capacity.

 

[SageBrush]

This article is interesting

Minnesotans furious that they have to pay for Texas’ deep-freeze problems

Natural gas prices surged across the country during Texas’ February freeze.

arstechnica.com

And in the center of it all, a Houston based NG company that is the NG utility to MN

 

[CrazyRabbit]

Texas daily Solar Production chart

Texas daily Wind Production chart

 

[CrazyRabbit]

This article is interesting

Minnesotans furious that they have to pay for Texas’ deep-freeze problems

Natural gas prices surged across the country during Texas’ February freeze.

arstechnica.com

And in the center of it all, a Houston based NG company that is the NG utility to MN

gas was flowing at twice the summer peek flow rates during the storm, as such Methane Clathrate (sulfides) form and plug the lines. here in tx we usually pump liquids (lets call it anti freeze) into the lines to help prevent this. it wasn't enough to prevent the well heads and lines from freezing. this is a global problem, not just a texas problem.

 

[mspohr]

gas was flowing at twice the summer peek flow rates during the storm, as such Methane Clathrate (sulfides) form and plug the lines. here in tx we usually pump liquids (lets call it anti freeze) into the lines to help prevent this. it wasn't enough to prevent the well heads and lines from freezing. this is a global problem, not just a texas problem.

Only if you need natural gas

 

[mspohr]

NPR: Texas Power Grid Changes May Not Be Enough To Prevent Blackouts.

Texas Lawmakers Passed Changes To Prevent Blackouts. Experts Say They're Not Enough

After February's deadly power outages, new legislation would mandate winterizing parts of the state's energy system. But lawmakers took a pass on major market reforms to make the grid more resilient.

www.npr.org