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New frontiers in propaganda

We are at the forefront, because of course we are.

Readers of the daily email newsletter of one of the country’s leading right-wing, fossil fuel-funded think tanks were treated to a bizarre sight [last] week: an AI-generated image of a dead whale washed ashore on a beach in front of wind turbines, above a fearmongering story about offshore wind. Unfortunately, what is isolated to one newsletter today could spread around the right-wing ecosystem tomorrow.

I cover climate and read breaking news about renewable energy every day; if there were a real photo of a dead whale in front of a wind farm like this, chances are I would have seen it. Still, the image gave me a jump when I opened the email from the Texas Public Policy Foundation. For a moment, I wondered if I’d somehow missed a huge story about a dead humpback that had washed ashore in front of a wind farm.

The story under the image is old hat for this particular newsletter. The Texas Public Policy Foundation, or TPPF, is one of the leaders in the national right-wing push against renewable energy—specifically against offshore wind. Despite its location in Texas, the group has lent its sizable financial muscle to anti-offshore wind efforts on the East Coast, joining a lawsuit against a project filed by local fishermen and creating an entire movie about the evils of wind energy.

The image is at least recognizably an AI generation: there’s the tell-tale uncanny valley nature of the pattern of the debris of the beach, and the blades of the wind turbines are, well, bendy, in a way that you certainly don’t see in real life. The biggest giveaway is the DALL-E generator watermark at the lower right hand corner of the image. When I plugged in various search terms, like “beached dead humpback whale in front of offshore wind turbines” into the DALL-E generator, I got images that looked a lot like what was at the top of my newsletter. (Some of mine were much better, not gonna lie.)

Still, the image is, at first glance, realistic enough to make me do a double-take, and there’s no label on the image marking it as not a real photograph. Readers of the newsletter who aren’t familiar with how AI images look or who are just skimming could certainly be forgiven for thinking that this is real evidence of dead wildlife near a wind farm.

The story shows the original image, and especially with the foreknowledge that it’s sketchy it’s easy to see the fakery in the photo. There’s also a much less janky image of the same scene, created by the story author, which shows how much better and more insidious this sort of thing can and surely will be in the hands of liars and lowlifes. For now, if someone has passed along this bit of bullshit to you, you can show them this story and hope to at least spark a bit of skepticism in them. The next time, when it’s much more convincing? I have no idea. God help us all.

More battery power coming

Now here is something that might actually help the grid.

Robert Conrad approves

A surge of new battery projects is expected to come online on Texas and California’s power grids, as developers seek to store the excess electricity produced by those state’s sprawling wind and solar farms.

The Department of Energy estimates 21 gigawatts of batteries will be hooked into U.S. power grids before 2026, more than two and half times what is currently in operation. In Texas they are expecting 7.9 gigawatts of batteries to be built.

The boom in battery development comes as weather dependent wind and solar energy become an increasingly large part of the U.S. power grid, requiring a power source to step in quickly when the wind isn’t blowing and the sun isn’t shining.

Since the rise of renewables over the past decade, natural gas turbines have shouldered a lot of that load. But as lithium ion battery prices have come down in recent years – at the same time natural gas prices have increased – power utilities are increasingly looking to that technology to fill the gaps.

“What you’re seeing here is a technology starting to reach its inflection point,” said Ryan Katofsy, managing director at the trade group Advanced Energy Economy. “Costs are down, performance is improved. There’s more awareness of the qualities (batteries) provide.”

The boom coincides with increasing concern around the reliability of the U.S. power grid amid changing weather patterns linked to climate change. Texas suffered a days long blackout in 2021 after a  historic winter storm caused power plants and natural gas wells to freeze up. Batteries could theoretically help fill the gap when power plants go down, said Michael Webber, an energy professor at the University of Texas.

But driving investor interest is a Texas power market where wind energy in the panhandle and West Texas frequently exceeds the capacity of transmission lines running east to the state’s population centers, he said. If a power company can store electricity in off peak hours and then deploy it when power demand is at its highest, there is profit to be made.

“You get these opportunities for big swings in price from low to high,” Webber said. “We’re going to build batteries all over, quite frankly.”

[…]

And many more projects could be coming, with 79 gigawatts worth of projects listed as pending by the grid operator’s Electric Reliability Council of Texas. Many of those projects have yet to secure financing or other milestones but they represent one third of all the generation in development on ERCOT’s grid right now.

You can thank the Inflation Reduction Act, also known as the bipartisan infrastructure bill, for that last item. There are still other issues to be solved but this is a good starting point. I don’t expect much from the Legislature, but as long as they stay out of the way it ought to be all right.

The cryptomining surge in rural counties

Here’s one possible answer to that question I posed the other day.

Jacob Rodriguez was driving a John Deere tractor in a West Texas cotton field when he received a phone call that would change his life.

“I was pulling a 59-foot air seeder … and at the same time I was on the phone having my interview,” Rodriguez, 29, said.

On the other end of the phone early this year were representatives from a new business that was coming to Dickens County, a community of around 2,000 people an hour east of Lubbock.

By March, Rodriguez had quit farming cotton — something he called “just another job” — and began training to work in a cryptocurrency mine.

The county had exactly what London-based Argo Blockchain was looking for: plenty of open land and easy access to affordable power, thanks to a large wind farm built there more than a decade ago.

Texas political leaders have been promoting the state as a destination for companies producing bitcoin and other digital currencies, touting the state’s reputation for low taxes and cheap power. Around 30 have come in the past decade, and dozens more have expressed interest in moving to Texas.

But instead of moving to the state’s large urban areas — which have the extensive infrastructure and large workforce that attracts most relocating companies — cryptocurrency companies have largely done the opposite and located in rural areas, according to Lee Bratcher, president of the Texas Blockchain Council, a group promoting crypto growth and innovation.

Crypto companies have been welcomed by many small towns hungry for an economic boost. Argo Blockchain opened its 125,000-square-foot Helios facility in Dickens County in May and hired a couple dozen locals, including Rodriguez. It has also added $17 million to the local tax base, according to Kevin Brendle, the county judge. The county’s overall assessed property tax value is $283 million, he said.

That economic infusion has allowed Dickens County to cut county property taxes by around 1.5%, give small raises to county staff, and purchase new equipment for the sheriff’s office and for road and bridge improvements.

“The end result is enhanced services to the community,” Brendle said. “We’re going to be able to do a better job of serving them, and we’ll be able to be competitive in our wages.”

In Milam County, northeast of Austin, a large crypto facility owned by Riot Blockchain that opened in 2020 has added hundreds of new jobs and millions of dollars for the local tax base, according to County Judge Steve Young. He said the boost in taxes has allowed the county government to pay for basic services such as road improvements. When the crypto company needed to employ contractors for various projects, it hired locally, he added.

See here for my question. The article notes that the recent crackdown on crypto mining in China has led to opportunities in places like Texas to pick up the slack. The Republican obsession with cryptocurrency and the fact that these places are locating in rural areas makes a lot of sense politically. And of course, as always, there’s this:

Many rural counties are offering crypto companies tax breaks to lure them to their communities. Milam County, which lost its biggest employer — an Alcoa aluminum plant that employed nearly 1,000 people at its peak and closed in 2008 — offered Riot Blockchain a 45% discount on local taxes for 10 years, said Young, the county judge.

“Businesses are typically not going to come to your county unless you’re willing to give them a tax abatement,” Young said.

Crypto companies still add millions of dollars to the local tax base, Young said, and in Milam County, Riot Blockchain also helped rebuild the local animal shelter and installed new lights at local sports fields.

On the other side of the state, Brendle said Argo Blockchain has committed to refurbishing the county-owned public pool, which closed more than a decade ago.

Brendle and Young both said local residents didn’t oppose the new businesses but had lots of questions about cryptocurrency and whether outsiders would flock to their rural counties.

“When they first came here, people had no idea what it was — neither did I,” Young said. “As it’s gone forward, the county as a whole has started to get a grasp of what’s going on and clearly appreciates the fact that they’re out there providing jobs, enhancing county services, hiring local contractors for the most part and spending a ton of money here. It’s a huge benefit to the county.”

Dig down far enough, there’s always a tax break. Look, I hope this works out well for these communities. Rural Texas has been losing population for a variety of reasons, and they could use the economic boost. I remain skeptical of cryptocurrency as a long-term endeavor, and I remain very worried about the demand it puts on our power grid, but there’s not much I can do about that. All I can say is that the last Big Economic Thing that happened in rural Texas was the private prison industry, and I really hope this turns out better all around than that. You’ll forgive me, I hope, if I will need to see it to believe it.

NOTE: This is the time of year when I clear out some posts that have been sitting in my Drafts while other more important news items got blogged about. This one was from early October, well before the crash of FTX. I’ll have a separate post about that shortly; the news hook for that is what prompted me to finally publish this one.

Tell me again why we’re encouraging all these crypto-miners to come to Texas

Seriously, what are we doing here?

Cryptocurrency miners are accelerating their push to expand in Texas far beyond what authorities had initially expected, threatening to send the state’s electricity use skyrocketing.

Enough miners have applied to connect to Texas’s power grid to use up to 33 gigawatts of electricity, the Electric Reliability Council of Texas, which runs the system, said in an email Friday. That’s a third more than what the grid operator’s chief executive officer said in April that officials were preparing to handle over the next decade. It’s also enough to power all of New York State.

A spokeswoman for the grid operator, known as ERCOT, said officials expect to have enough power plants available to meet any rise in demand. The miners will need approval from ERCOT before connecting to the grid.

The surging interest underscores how appealing Texas remains to crypto miners, even as the value of Bitcoin has plunged more than 50% in the past year. And while many of those miners may never actually set up shop, the sheer number applying raises questions over whether the state’s grid, which collapsed during a deadly 2021 winter storm, will be able to meet the demand for electricity.

Crypto miners currently account for about 1.2 gigawatts of electricity demand in Texas, according to the Texas Blockchain Council, which represents miners. That’s enough to power about 240,000 homes. Over the past four months, the number of miners applying to plug into the grid has doubled.

The state has aggressively recruited miners, touting its cheap power, abundant renewable energy and business-friendly regulatory environment. Texas has some of the cheapest electricity rates for big consumers, averaging about 7.57 cents per kilowatt-hour in June, a third lower than the national average, according to the U.S. Energy Information Administration. It also has more wind power than any other state, which is appealing to miners pushing to appear more environmentally friendly.

In April, ERCOT’s interim CEO Brad Jones said he was working with miners to prepare the grid to handle about 25 gigawatts of crypto demand over the next decade. When asked if Texas aims to be the world’s largest mining center, he replied: “Yeah, that’s what we are planning.”

See here for some background. This story is from about a month ago, and it was the publication of another crypto story in the Trib that spurred me to finally hit publish on it. My main question is simply “Why?” What are we getting out of this? I’ll come back to that in the next crypto post. Yahoo News has more.

Texas will get a lot from the Inflation Reduction Act

Thanks, Biden!

Texas’s clean energy sector is expected to be one of the largest beneficiaries of the climate and health care legislation President Joe Biden has signed into law, according to estimates released by the White House Wednesday.

Over the next eight years, Texas is expected to see $66.5 billion in investment through the legislation, expanding wind and solar energy, advanced batteries and other sources of clean electricity — more than CaliforniaNew York or Florida.

Named the Inflation Reduction Act, the bill provides almost $370 billion in federal funding for the clean energy sector, with government officials hoping to spur far larger investment from the private sector.

Environmental Protection Agency Administrator Michael Regan described the legislation in a press conference Wednesday as, “the linchpin to putting us on path to reach net zero (greenhouse gas emissions) no later than 2050.”

“It invests in American workers, the back bone of this country, by spurring supply chains for clean energy,” he said.

Texas has long led the nation in clean energy, with three times as many wind turbines as the next closest state. And while California still has the most solar energy capacity, Texas is beginning to catch up, with more installations last year than any other state, according to the Solar Energy Industry Association.

Here’s a quote of interest from Bloomberg: “Of the top 10 congressional districts in the country for operating and planned wind, solar and battery capacity, four are in Texas, more than in any other state and including the No. 1 district, Texas’ 19th.” So of course every Republican voted against it. Which won’t stop them from claiming credit for the good things that will happen. It’s the circle of life.

Fortunately, at least some of the goodness should go places that can honestly claim credit.

U.S. Rep. Sheila Jackson Lee wants environmental justice funds in the Inflation Reduction Act to flow into northeast Houston as freely as the concrete batch facilities that have come to plague the predominantly Black area.

Legislation passed Friday includes $60 billion for environmental justice programs that can help communities such as Trinity and Houston Gardens fight polluters and reduce emissions, the congresswoman said during a Sunday event at Trinity Gardens Church of Christ attended by around 25 community advocates and concerned residents.

Issues such as the illegal dumping of industrial trash, cancer clusters stemming from creosote used by rail companies and air and water contamination from a growing number of industrial sites make the city’s northeast corner “a fitting example” of communities the legislation aims to help, Jackson Lee said.

The bill also earmarks $3 billion for community centers that can “address disproportionate environmental and public health harms related to pollution.” Northeast Houston should have one such center, she said, describing the area as the new “concrete batch Mecca.”

The bill offers a hand to advocates in communities across Texas, where restraints on polluters are lax. Earlier this month, the U.S. Environmental Protection Agency said it was investigating state environmental regulators accused of violating residents’ civil rights when Texas updated its standard permit for concrete batch plants.

The plants have become infamous in the community for billowing dust clouds and concrete-laced water seeping into neighboring properties. There are three schools within a half-mile of the plants, said Keith Downey, super neighborhood president representing Kashmere Gardens.

Jackson Lee told advocates the new federal funds can offer relief for a community fighting these fights largely by themselves.

That would be great. Rooting for this to happen.

When we say “fix the grid”…

This is one of the obvious ways we could attempt to do that.

Photo from Wikimedia Commons

The state’s High Plains region, which covers 41 counties in the Texas Panhandle and West Texas, is home to more than 11,000 wind turbines — the most in any area of the state.

The region could generate enough wind energy to power at least 9 million homes. Experts say the additional energy could help provide much-needed stability to the electric grid during high energy-demand summers like this one, and even lower the power bills of Texans in other parts of the state.

But a significant portion of the electricity produced in the High Plains stays there for a simple reason: It can’t be moved elsewhere. Despite the growing development of wind energy production in Texas, the state’s transmission network would need significant infrastructure upgrades to ship out the energy produced in the region.

“We’re at a moment when wind is at its peak production profile, but we see a lot of wind energy being curtailed or congested and not able to flow through to some of the higher-population areas,” said John Hensley, vice president for research and analytics at the American Clean Power Association. “Which is a loss for ratepayers and a loss for those energy consumers that now have to either face conserving energy or paying more for the energy they do use because they don’t have access to that lower-cost wind resource.”

And when the rest of the state is asked to conserve energy to help stabilize the grid, the High Plains has to turn off turbines to limit wind production it doesn’t need.

“Because there’s not enough transmission to move it where it’s needed, ERCOT has to throttle back the [wind] generators,” energy lawyer Michael Jewell said. “They actually tell the wind generators to stop generating electricity. It gets to the point where [wind farm operators] literally have to disengage the generators entirely and stop them from doing anything.”

[…]

Wind energy is one of the lowest-priced energy sources because it is sold at fixed prices, turbines do not need fuel to run and the federal government provides subsidies. Texans who get their energy from wind farms in the High Plains region usually pay less for electricity than people in other areas of the state. But with the price of natural gas increasing from inflation, Jewell said areas where wind energy is not accessible have to depend on electricity that costs more.

“Other generation resources are more expensive than what [customers] would have gotten from the wind generators if they could move it,” Jewell said. “That is the definition of transmission congestion. Because you can’t move the cheaper electricity through the grid.”

A 2021 ERCOT report shows there have been increases in stability constraints for wind energy in recent years in both West and South Texas that have limited the long-distance transfer of power.

“The transmission constraints are such that energy can’t make it to the load centers. [High Plains wind power] might be able to make it to Lubbock, but it may not be able to make it to Dallas, Fort Worth, Houston or Austin,” Jewell said. “This is not an insignificant problem — it is costing Texans a lot of money.”

Some wind farms in the High Plains foresaw there would be a need for transmission. The Trent Wind Farm was one of the first in the region. Beginning operations in 2001, the wind farm is between Abilene and Sweetwater in West Texas and has about 100 wind turbines, which can supply power to 35,000 homes. Energy company American Electric Power built the site near a power transmission network and built a short transmission line, so the power generated there does go into the ERCOT system.

But Jewell said high energy demand and costs this summer show there’s a need to build additional transmission lines to move more wind energy produced in the High Plains to other areas of the state.

Jewell said the Public Utility Commission, which oversees the grid, is conducting tests to determine the economic benefits of adding transmission lines from the High Plains to the more than 52,000 miles of lines that already connect to the grid across the state. As of now, however, there is no official proposal to build new lines.

Sure would be nice to have such a proposal, wouldn’t it? That’s a thing that the Governor and the Legislature could make happen if they wanted to. Unfortunately, a lot of them don’t want to, and of course Greg Abbott is incapable of taking any positive action. So here we are, with those of us too far away from the existing turbines to benefit from them looking longingly at the Gulf of Mexico for some future relief. I don’t know how much it might cost to build out the transmission network (the story doesn’t say), or to invest in battery storage for solar energy (another thing we’re good at generating in this state, as noted in the story), but I’m sure we could find the money if we wanted to. First, though, we have to want to. And that means electing people who want to. Because we don’t have that now.

Offshore wind farm proposed

Let’s do it.

The Gulf of Mexico’s first offshore wind farms will be developed off the coasts of Texas and Louisiana, the Biden administration announced Wednesday, and together they’re projected to produce enough energy to power around 3 million homes.

The wind farms likely will not be up and running for years, energy analysts and the state’s grid operator said, but the announcement from the U.S. Interior Department is the first step in ramping up offshore wind energy in the United States, which has lagged behind that of Europe and China. The only two operating offshore wind energy farms in the U.S. are off the coasts of Rhode Island and Virginia, which together produce 42 megawatts of electricity — enough to power fewer than 2,500 homes.

One of the new wind projects announced Wednesday will be developed 24 nautical miles off the coast of Galveston, covering a total of 546,645 acres — bigger than the city of Houston — with the potential to power 2.3 million homes, according to the U.S. Interior Department’s Bureau of Ocean Energy Management. The other project will be developed near Port Arthur, about 56 nautical miles off the coast of Lake Charles, Louisiana, covering 188,023 acres with the potential to power 799,000 homes.

“It’s exciting to see offshore wind in the Gulf getting closer to reality,” said Luke Metzger, executive director of Environment Texas, an environmental protection group. “With strong winds in the evenings when we need energy the most, offshore wind in the Gulf of Mexico would greatly complement Texas’ onshore renewable energy resources, help bolster our shaky electric grid and help our environment.”

[…]

“Offshore wind has a great potential in Texas,” Brad Jones, president of the Electric Reliability Council of Texas, which manages Texas’ main power grid, told The Texas Tribune on Thursday. “It will take some time to develop, and that time will be based on how quickly we can put together port facilities, the specialized ships that are necessary and train our labor force to achieve this type of development. It is new for the U.S.”

I suppose it’s a sign of the times that when I read stories like this I go looking for the bit where Ken Paxton threatens to file a lawsuit to stop it. I may need therapy. No mention of any such action in this story, or in the Chron story that has a few more details.

The wind energy area proposal is still just a draft, the bureau said. Visitors to its website can comment on the plans, and the bureau will hold online public meetings Aug. 9 and 11 to discuss the proposals.

“Once the final wind energy area or areas have been identified, the next step is to propose a lease sale for public comment either later this year or early next year,” said John Filostrat, a spokesman for BOEM’s Gulf of Mexico office.

The bureau said state officials and wind developers would determine if electricity generated in the areas’ boundaries would flow to the Texas power grid or the neighboring East Coast grid system. The Coast Guard would determine if commercial or recreational boats — including commercial fishing and shrimping operations — could enter the waters near the wind turbines, bureau officials said, adding that they have held several meetings with fishing groups and associations this year.

As a result, they said they have already carved out parcels from the lease area to leave bare for shrimping operations to continue.

[…]

Wind power along the Gulf Coast tends to be strongest south of Corpus Christi, tapering off by the time it reaches Florida, according to a bureau study.

Even so, the Gulf of Mexico has a leg up on the competition, said Josh Kaplowitz, vice president of offshore wind for the American Clean Power Association. The region is home to an entire supply chain dedicated to offshore energy and a trained workforce. Already, he said, a massive wind turbine installation vessel is being built in Brownsville.

“The Gulf of Mexico has a head start, and we should be leveraging that,” he said. “Wind turbine technology is getting better. They’re getting larger, and as they get larger they can be built in a more economical way at lower wind speeds.”

One issue more pressing for Gulf turbines than those in other offshore areas is the potential for strong hurricanes. Kaplowitz said the turbines off Rhode Island and those designed for off the coast of North Carolina have been engineered to withstand hurricane-force winds. He said those built off the Texas coast would likely be designed to withstand winds of the strongest storms projected to hit that part of the coast.

Offshore wind turbines have yet to be tested in such a ferocious storm, Andy Swift, associate director of education with Texas Tech’s National Wind Institute, told the Chronicle in October. Turbines onshore have suffered catastrophic damage in tornadoes, he said, requiring companies to take out large insurance policies on them. That could also be the case in the Gulf, he said.

“The storm issue — it’s a big one. I think people are looking at building more hurricane-resistant turbines as much as they can to stand against the high winds continually buffering of equipment, with waves and winds gusting against it,” Swift said in October. “I think that’s a challenge for offshore.”

The BOEM’s press release about this is here, and it points you to this page for info about public meetings and providing feedback. This is likely the start of a ten-year process, so settle in and make yourself comfortable. Assuming there isn’t already a national injunction against it issued by some cretinous Trump judge in Lubbock or something. Did I mention that I need help?

Speaking of cryptocurrency and electricity usage…

Congress has a few questions.

From wind farms in West Texas to an old aluminum refining operation outside Austin, crypto miners are flooding into Texas take advantage of some of the cheapest power in the country and positioning the state to become the state’s crypto mining leader. But the accompanying surge in energy consumption is drawing scrutiny from Congress when the world is trying to not only clean up its energy system but also reduce demand to fight climate change.

At a hearing this month before the House Energy and Commerce Committee, the chairman. Rep. Frank Pallone, D-N.J., questioned the sustainability of crypto mining’s business model.

“One estimate found that the energy required to process (one) transaction on the bitcoin network could power a home for more than 70 days,” Pallone said. “Last year, there were hundreds of thousands of transactions on this network. Just imagine the climate implications.”

recent study by scientists at Cambridge University found crypto mining operations globally consume 135 terawatt hours of electricity per year, more than the entire country of Argentina.

The majority of that electricity comes from hydroelectric dams and coal and natural gas plants, the scientists found. In New York, for instance, one firm has restarted an old coal-fired power plant to provide energy for its crypto mining operations.

[…]

In Texas, so far, crypto miners are being met with open arms. The Texas Legislature last year passed a bill creating a task force to aid the development of the cryptocurrency industry in Texas, with Governor Greg Abbott writing on Twitter, “It’s happening. Texas will be the crypto leader.”

That along with the state’s cheap power prices are attracting crypto mining firms from around the world, most of which were forced to look for new homes after the Chinese government banned cryptocurrency last year.

EZ Blockchain, a Chicago firm, has proposed setting up mobile computer rigs in Texas’s oil and gas fields, powering their mining operations with natural gas that would otherwise be flared.

Marathon Digital, based in Las Vegas, announced last month it was installing more than 100,000 bitcoin mining computers around Texas, primarily adjacent to wind and solar farms in West Texas.

“This industry has transformed over the last year since China shut down mining,” said Charlie Schumacher, director of corporate communications at Marathon. “The U.S. is unique because we have excess power here and we have a friendly regulatory environment. But we’ve gone through this transition so quickly it’s raised a lot of questions.”

Even as some crypto companies make strides to employ clean energy for their operations and reduce their energy consumption by using more efficient equipment, the sheer scale of their energy demand is giving many pause.

And as new miners flood the industry, there’s little sign of a slowdown. Electricity consumption for mining bitcoin, the most popular crypto currency, has almost doubled over the last two years, according to the Cambridge scientists.

“We’re making all these great strides to decarbonize and reduce our energy use and now were promoting this incredibly energy intensive new industry and wiping out any climate gains were struggling to make,” said Luke Metzger, executive director of Environment Texas, an activist group. “It seems very wasteful and not what we need right now.”

Concerns about the environment, as well as concerns that all this demand for electricity could have negative effects on the consumer market, seem eminently reasonable to me. It’s nice that coin miners were willing to power down during this cold front, but what assurance do we have they will do so next time? Some regulation is needed, and I’d like to see some exploration of a way to tax high energy use by crypto companies, as a way to ensure that they won’t distort the market. The one thing I am sure of is that doing nothing and hoping it all turns out for the best is unlikely to work. Put some guardrails in place, and enforce violations. We can debate over what that looks like, but that needs to be the goal.

How the grid held up

Basically, this cold front wasn’t anything like last year’s cold front.

Texas’s power grid passed its biggest test since last year’s deadly blackouts, keeping most lights on during a wintry blast. This storm, however, was far less severe than last year’s monstrous one, leaving questions whether the state is really ready for another deep freeze.

While reforms politicians enacted in the past year did help keep power plants running, analysts and power-market experts say the biggest reason things went so smoothly was it simply wasn’t as cold for as long. That meant natural gas kept flowing and wind turbines worked far better, helping the grid meet the increased power demand as millions of Texans cranked up electric heaters.

“The grid held up fine for a couple of reasons: the weather wasn’t as bad as we thought, and wind overperformed,” said Michael Webber, an energy professor at the University of Texas. “The demand wasn’t as high, and the supply wasn’t as low.”

[…]

Gas flowed freely during this week’s storm, but that’s largely because it didn’t get cold enough.

“The state still remains vulnerable because we have not set requirements for winterization of the gas system,” said Webber, who’s also chief technology officer at venture fund Energy Impact Partners. “As such, the reliability of gas production is still flimsy.”

In Dallas, last year’s temperatures fell as low as -2 Fahrenheit (-19 Celsius), and there were 11 straight days with highs below 40 degrees. This year, forecast lows are around 10 degrees, and meteorologists expect just three consecutive days with highs below 40.

In Midland, the hub of the oil- and natural gas-rich Permian Basin, last year saw eight consecutive days when temperatures never rose above freezing, which crippled the flow of gas and starved power plants of fuel. This time, Midland didn’t have back-to-back days when the mercury stayed below 32 degrees.

“The last one was both longer and more extreme,” said Marc Chenard, a meteorologist at the U.S. Weather Prediction Center.

While Ercot didn’t ask consumers to conserve, widespread closures of schools and businesses helped cut down on consumption. Peak demand for electricity was significantly lower and a bit later than anticipated Friday morning, with consumption hitting 69 gigawatts when Ercot previously projected record demand of 75.6 gigawatts. A gigawatt is enough to power about 200,000 Texan homes.

And don’t forget the coin miners. Like Slytherin in the Battle of Hogwarts, the coin miners did their part.

In the short run at least, this is good for Greg Abbott, whose bet paid off. By the same token, though, we’ve spent the last few weeks talking about the freeze, reliving our experiences from it, and expressing a big lack of confidence in the grid, even if it did stay up this time. We still have the actual one-year anniversary of the freeze coming up in about a week, so we’re not done yet with the trauma of it all. That can’t be great for Abbott. He won his bet, which meant he didn’t get absolutely pummeled by circumstances that he had some control over but did nothing to affect, but the payoff was mostly that he broke even. That’s probably good enough for him since he’s leading in the polls, but winter isn’t over yet, and I doubt too many people are feeling better about it. The DMN has more.

A timeline of the blackout

Of interest.

A new report from University of Texas at Austin energy experts lays much of the blame for power outages during the state’s deadly February freeze on the failure of natural gas producers to fully weatherize their facilities.”

The natural gas system could not meet demand,” the authors of the 101-page study wrote. “The production losses stemmed principally from freeze-offs, icy roads and electric outages to the equipment used in the natural gas industry.”

UT issued the study Tuesday, the same day the state’s health department revised its official death toll from the disaster, raising it to 210 from 151. However, at least one data-driven report suggests the actual number may exceed 700.

[…]

For the study, UT researchers looked at the performance of 27 natural gas facilities during the freeze and found that as temperatures dropped, the operators’ pipelines and equipment ceased to function, resulting in an 85% falloff when power companies needed the fuel.

Indeed, 18 of the natural gas facilities it studied had “zero output” on February 17, the peak of the storm.

In addition to their human cost, the failures resulted in massive charges for the state’s power generators, according to the report. CPS Energy, for example, tallied losses on natural gas fuel purchases of as much as $850 million, and losses on purchased power costs of as much as $250 million.

The 101 page report is here. Neither of us is likely to read through the whole thing, but the Findings section of the Executive Summary give you the main points:

The failure of the electricity and natural gas systems serving Texas before and during Winter Storm Uri in February 2021 had no single cause. While the 2021 storm did not set records for the lowest recorded temperatures in many parts of the state, it caused generation outages and a loss of electricity service to Texas customers several times more severe than winter events leading to electric service disruptions in December 1989 and February 2011. The 2021 event exceeded prior events with respect to both the number and capacity of generation unit outages, the maximum load shed (power demand reduction) and number of customers affected, the lowest experienced grid frequency (indicating a high level of grid instability), the amount of natural gas generation experiencing fuel shortages, and the duration of electric grid operations under emergency conditions associated with load shed and blackout for customers. The financial ramifications of the 2021 event are in the billions of dollars, likely orders of magnitude larger than the financial impacts of the 1989 and 2011 blackouts.

Factors contributing to the electricity blackouts of February 15-18, 2021, include the following:

  • All types of generation technologies failed. All types of power plants were impacted by the winter storm. Certain power plants within each category of technologies (natural gas-fired power plants, coal power plants, nuclear reactors, wind generation, and solar generation facilities) failed to operate at their expected electricity generation output levels.
  • Demand forecasts for severe winter storms were too low. ERCOT’s most extreme winter scenario underestimated demand relative to what actually happened by about 9,600 MW, about 14%.
  • Weather forecasts failed to appreciate the severity of the storm. Weather models were unable to accurately forecast the timing (within one to two days) and severity of extreme cold weather, including that from a polar vortex.
  • Planned generator outages were high, but not much higher than assumed in planning scenarios. Total planned outage capacity was about 4,930 MW, or about 900 MW higher than in ERCOT’s “Forecasted Season Peak Load” scenario.
  • Grid conditions deteriorated rapidly early in February 15 leading to blackouts. So much power plant capacity was lost relative to the record electricity demand that ERCOT was forced to shed load to avoid a catastrophic failure. From noon on February 14 to noon on February 15, the amount of offline wind capacity increased from 14,600 MW to 18,300 MW (+3,700 MW).2 Offline natural gas capacity increased from 12,000 MW to 25,000 MW (+13,000 MW). Offline coal capacity increased from 1,500 MW to 4,500 MW (+3,000 MW). Offline nuclear capacity increased from 0 MW to 1,300 MW, and offline solar capacity increased from 500 MW to 1100 MW (+600 MW), for a total loss of 24,600 MW in a single 24-hour period.
  • Power plants listed a wide variety of reasons for going offline throughout the event. 3 Reasons for power plant failures include “weather-related” issues (30,000 MW, ~167 units), “equipment issues” (5,600 MW, 146 units), “fuel limitations” (6,700 MW, 131 units), “transmission and substation outages” (1,900 MW, 18 units), and “frequency issues” (1,800 MW, 8 units). 4
  • Some power generators were inadequately weatherized; they reported a level of winter preparedness that turned out to be inadequate to the actual conditions experienced. The outage, or derating, of several power plants occurred at temperatures above their stated minimum temperature ratings.
  • Failures within the natural gas system exacerbated electricity problems. Natural gas production, storage, and distribution facilities failed to provide the full amount of fuel demanded by natural gas power plants. Failures included direct freezing of natural gas equipment and failing to inform their electric utilities of critical electrically-driven components. Dry gas production dropped 85% from early February to February 16, with up to 2/3 of processing plants in the Permian Basin experiencing an outage.5
  • Failures within the natural gas system began prior to electrical outages. Days before ERCOT called for blackouts, natural gas was already being curtailed to some natural gas consumers, including power plants.
  • Some critical natural gas infrastructure was enrolled in ERCOT’s emergency response program. Data from market participants indicates that 67 locations (meters) were in both the generator fuel supply chain and enrolled in ERCOT’s voluntary Emergency Response Service program (ERS), which would have cut power to them when those programs were called upon on February 15. At least five locations that later identified themselves to the electric utility as critical natural gas infrastructure were enrolled in the ERS program.
  • Natural gas in storage was limited. Underground natural gas storage facilities were operating at maximum withdrawal rates and reached unprecedently-low levels of working gas, indicating that the storage system was pushed to its maximum capability.

The ERCOT system operator managed to avoid a catastrophic failure of the electric grid despite the loss of almost half of its generation capacity, including some black start units that would have been needed to jump-start the grid had it gone into a complete collapse.

Just as a reminder, the grid was not on the first special session agenda, and as of today isn’t on the second session’s agenda. I have heard it suggested that Abbott could add grid items to the agenda, or put them on but near the bottom of the agenda for this special session, to make it harder for the Dems to be away. The main problem with that analysis is that Abbott has been busy telling everyone in sight that the grid has been totally fixed. What’s to put on the agenda if that’s really the case? His problem for now, all of ours the next time the words “rolling blackouts” get mentioned.

Abbott tells the PUC to, like, “do something” about electricity and stuff

He’s a Very Serious man making Very Serious proposals.

Gov. Greg Abbott on Tuesday gave state electricity regulators marching orders to “improve electric reliability.”

In a letter to the Public Utility Commission, Abbott directed the three-person board of directors, who he appoints, to take action that would require renewable energy companies to pay for power when wind and solar aren’t able to provide it to the state’s main power grid, echoing a move state lawmakers rejected in May.

Abbott also told the PUC to incentivize companies to build and maintain nuclear, natural gas and coal power generation for the grid — which failed spectacularly during a February winter storm, leaving millions of Texans without power or heat for days in below freezing temperatures.

Texas energy experts were skeptical that Abbott’s orders would actually improve the reliability of the state grid, which operates mostly independently of the nation’s two other major grids.

“What is here is not a serious or prudent plan for improving the grid,” Daniel Cohan, an associate professor of civil and environmental engineering at Rice University, said in an interview Tuesday. “It’s more of a political job favoring some [energy] sources over others. For Texans to have a more reliable power supply, we need clearer thinking that makes the best of all the sources we have.”

Abbott’s letter also called on the PUC to direct the state’s main grid operator, the Electric Reliability Council of Texas, to better schedule when power plants are offline, an issue that caused tension between state regulators and power generators after some power plants unexpectedly went offline in June and led ERCOT to ask Texans to turn their thermostats up to 78 degrees for a week during a heat wave to conserve energy.

Abbott responded to the plant outages by declaring the power grid “is better today than it’s ever been.”

Does anyone believe that? I don’t know what the odds are of another major power failure between now and, say, next November, but does anyone think such platitudes will be accepted by the public if one does happen? Even Dan Patrick thinks that power grid reform items – most of which never went anywhere during the session – should be on the special session agenda. Maybe we all get lucky and nothing bad happens any time soon, but if that’s the case it won’t be because Abbott was busy urging us all to clap louder.

There’s still a lot of investment in renewables in Texas

Good to know.

Four months after the failure of the Texas electric grid sparked a backlash against clean power, investors and developers have decided just what the state needs: more renewable energy. Much more.

Texas is on pace to have as much green-power development in coming years as the next three states combined, according to the American Clean Power Association, a Washington-based trade group. Projects totaling 15 gigawatts — equal to the total electrical capacity of Finland in 2019 — are under construction or in advanced development, more than double three years ago. That’s according to data from the Electric Reliability Council of Texas, or Ercot, the state’s grid operator.

All told, the forthcoming wind, solar and battery-storage projects are worth an estimated $20 billion to $25 billion, the American Clean Power Association said.

[…]

The amount of renewable energy in the Ercot queue in May was much higher than the same month in any of the past three years. That massive growth is driven by jumps in solar farms and battery storage that outweigh a drop in the amount of wind power in the queue.

New utility-scale solar installations in Texas totaled 3.3 gigawatts last year, nearly matching the 3.5 gigawatts of new wind, according to BloombergNEF. The research group projects more than double the amount of new utility-scale solar and 4.2 gigawatts of new wind there this year.

Republicans bashed renewable energy during and after the storm, even as the state’s grid operator said that frozen instruments at gas, coal and even nuclear plants were the main reason for the blackouts. “This shows how the Green New Deal would be a deadly deal for the United States of America,” Texas governor Greg Abbott told Sean Hannity on Fox News in the midst of the freeze. He went on to blame wind and solar power and said fossil fuel plants are necessary for baseline power.

Several renewable developers said new laws that targeted clean power projects would force them to rethink building in Texas. A group including big power companies, Amazon.com Inc. and Goldman Sachs Group Inc. sent letters to Abbott and lawmakers in April, writing that proposed new laws would chill investment in the state.

Perhaps that letter had an effect, for as the story notes we managed to make it through this session without any explicitly anti-renewables bills passing. (Not that the Republicans didn’t try, mind you.) There are still issues with the grid’s capacity to handle more output from renewables, but maybe the investors are assuming some of those problems will work themselves out. I note in the story’s graphic that the amount being invested in battery storage is way higher than it used to be, so maybe that has an effect as well. In any event, we are still investing in renewable energy here. Let’s hope we don’t screw it up.

All juiced up with no place to go

Seems like there should be a better solution for this.

In 2005, the Texas Legislature approved the development of a network of electric transmission lines to send wind and solar power from West Texas to population centers in other parts of the state. The landmark project transformed the renewable energy industry and the slice of West Texas that Rep. Drew Darby calls home.

Metallic fields of photovoltaic solar panels now stretch across once bare scrub land. Lines of sky-scraping wind turbines reach to the horizon. And with those renewable energy projects came “some of our only opportunities for economic development” in rural Texas, said Darby, a Republican from San Angelo.

But those opportunities are at risk as companies cancel or postpone new wind and solar farms, and the list of planned projects keeps getting shorter. One key reason: generators can’t be sure that they can get their power to market.

The rapid growth of renewable energy, particularly wind power, has outstripped the carrying capacity of transmission lines. Even when demand soars and electricity supplies run short, the state’s grid manager, the Electric Reliability Council of Texas, must limit the power West Texas wind and solar farms can sell into the grid because of transmission constraints.

“I started seeing some projects go off the boards, and companies were saying they’re not going to build,” Darby said. “I asked why, and they said ‘We’ve had curtailments. We’re going to have to curtail production at certain times.’”

That West Texas has plenty of power but no place to go carries more than a little irony as policy makers and regulators focus on increasing electricity supplies following the deadly February power crisis. ERCOT is forecasting record power demand this summer, with a reserve margin — the cushion of extra generation available when supplies get tight — that’s higher than in recent years, but still well below the margins with which other grids operate.

[…]

Even as parts of the state bake in the summer heat and homeowners crank up air-conditioning units, the transmission limits mean the excess power generated out West won’t make it to where demand will be highest.

Ross Baldick, an emeritus professor of electrical and computer engineering at the University of Texas at Austin, said West Texas transmission upgrades completed in 2014 can transport about 18,500 megawatts of electricity, but more than 20,000 megawatts of wind energy alone are generated in the area. Due to other technical constraints, grid officials must limit power through those lines to less than 12,000 megawatts to keep them working properly.

Think about it like water pipes, Baldick said. One main pipe feeds smaller pipes that provide water to individual homes. If you try to force more and more water into the pipes, you reach a limit where the pipes could burst. To avoid that problem, you would have two choices: build more pipes to offset the stress on the existing pipes, or limit the amount of water flowing through the pipes.

Those are the choices for the power grid: build more transmission to transport increasing amounts of renewable power from the west, or limit the amount of power on the transmission lines.

As the story notes, West Texas has all of the conditions you could want for solar and wind energy generation, but none of it matters if you can’t hook it up to the grid. As a result, the projections of wind and solar energy for the year are declining. The House passed a bill by Rep. Darby to expedite the process ERCOT uses to study and plan for new transmission projects and the Public Utility Commission’s ability to approve them, but it died in the Senate. The power companies themselves aren’t going to build more transmission capacity, so here we are. Sure seems like there ought to be a better way.

Abbott knew the blackouts were coming

Good morning. Take a deep, cleansing breath, have a seat, and then read this.

Texas Governor Greg Abbott’s office knew of looming natural gas shortages on February 10, days before a deep freeze plunged much of the state into blackouts, according to documents obtained by E&E News and reviewed by Ars.

Abbott’s office first learned of the likely shortfall in a phone call from then-chair of the Public Utility Commission of Texas DeAnne Walker. In the days leading up to the power outages that began on February 15, Walker and the governor’s office spoke 31 more times.

Walker also spoke with regulators, politicians, and utilities dozens of times about the gas curtailments that threatened the state’s electrical grid. The PUC chair’s diary for the days before the outage shows her schedule dominated by concerns over gas curtailments and the impact they would have on electricity generation. Before and during the disaster, she was on more than 100 phone calls with various agencies and utilities regarding gas shortages.

After the blackouts began, Abbott appeared on Fox News to falsely assert that wind turbines were the driving force behind the outages.

Wind turbines were a factor, but only a small one. Wind in Texas doesn’t produce as much power in the winter, and regulators don’t typically rely on wind turbines to provide significant amounts of power. Instead, regulators anticipated that natural gas and coal power plants would meet demand.

In public, Bill Magness, then-CEO of ERCOT, the state’s electric grid regulator, didn’t seem concerned about the approaching weather. In a virtual meeting on February 9, Magness said, “As those of you in Texas know, we do have a cold front coming this way… Operations has issued an operating condition notice just to make sure everyone is up to speed with their winterization and we’re ready for the several days of pretty frigid temperatures to come our way.” During the two-and-a-half-hour public portion of the meeting, Magness devoted just 40 seconds to the unusual weather.

There’s more, so read the rest. I don’t know about you, but I’m beginning to think that Greg Abbott isn’t very good at this “being Governor” thing. Maybe we should consider electing someone else. Just a thought.

The Big Freeze didn’t just screw Texas

I had no idea.

Texas’ deep freeze didn’t just disrupt natural gas supplies throughout Lone Star country—its effects rippled across the country, extending as far north as Minnesota. There, gas utilities had to pay $800 million more than they anticipated during the event, and Minnesota regulators are furious.

“The ineptness and disregard for common-sense utility regulation in Texas makes my blood boil and keeps me up at night,” Katie Sieben, chairwoman of the Minnesota Public Utility Commission, told The Washington Post. “It is maddening and outrageous and completely inexcusable that Texas’s lack of sound utility regulation is having this impact on the rest of the country.”

The gas and electric markets in Texas are lightly regulated and highly competitive, which has pushed companies to deliver energy at the lowest possible cost. But it also means that many companies were ill-prepared when the mercury dropped. To save money, they had skimped on winterizing their equipment. As a result, gas lines across the state—which has about 23 percent of the country’s reserves—quite literally froze. The spot price of natural gas soared to 70-times what it would normally be in Minnesota, and gas utilities paid a hefty premium when they used the daily market to match demand.

In a twist, the biggest gas utility in Minnesota is CenterPoint Energy, a Houston-based company that also supplies a large swath of Southeastern Texas. The company said it spent an additional $500 million on gas that week in February, and it has asked Minnesota’s utility commission for permission to add a surcharge to customers’ bills. The surcharge not only seeks to recoup the additional money CenterPoint spent on natural gas, it also includes 8.75 percent interest. The company expects that each customer would shoulder a burden of $300 to $400.

Crazy, huh? I heard about this from friends on a recent Zoom call. CenterPoint is not only pushing to bill their Minnesota customers more to make up for the price differential, they’re asking to begin doing that in May instead of in September when price adjustments are normally made. They’re doing this because they say they’re in a cash bind, while at the same time their CEO is assuring investors that their cash position is just fine. They sure know how to make friends, don’t they?

The WaPo story has more details. This bit at the end caught my interest:

The state’s attorney general, Keith Ellison, a former Democratic member of Congress, has filed a strongly critical response to CenterPoint’s plan.

It notes that over the two-year payout schedule, the interest charged to customers would amount to $60 million, “at a time when many of them are already behind on their bills.”

CenterPoint argues that the interest charge reflects its own capital borrowing costs and that it is an appropriate item to add to its bills.

“The company has already had to pay most of the natural gas costs from February, but these costs will only be recovered over an extended period of time,” [CenterPoint spokesperson Ross] Corson wrote. “Until recovered, CenterPoint Energy must finance these costs through a combination of debt and equity. Given the unprecedented magnitude of this financial commitment, it is appropriate to include finance charges.”

Annie Levenson-Falk, executive director of a nonprofit called the Citizens Utility Board of Minnesota, asked in an interview why CenterPoint didn’t appeal for voluntary reductions in gas use when it saw prices spike.

She said the utilities should demonstrate why they had to rely so heavily on the spot market. But, she added, “there’s no getting around it — these are big costs that someone is going to have to incur.”

Natural gas, though, is an “essential good,” she said, adding that ordinary Minnesotans, collateral damage in the Texas disaster, are blameless.

“You know, somebody made a lot of money off people needing to heat their homes,” she said. “And that’s not right.”

There’s talk that Minnesota AG Ellison may file a lawsuit against CenterPoint over this. I can already hear the caterwauling from certain local politicians if that happens.

On a side note:

An updated analysis of February’s Texas power crisis by experts at the Electric Reliability Council of Texas shows that lost wind power generation was a small component of the huge losses in electric generation that plunged much of the state into darkness during the severe cold weather.

While Texas Republicans were quick to blame renewable energy during the storm — and have continued to target renewable energy for reform during this year’s legislative session — a recently updated report on the causes of generator outages during the week of Feb. 14 show that the most significant cause of the low power supply to the grid came from natural gas plants shutting down or reducing electricity production due to cold weather, equipment failures and natural gas shortages.

In ERCOT’s first preliminary report on the causes of the power crisis, released in early April, the grid operator included a chart that appeared to show power generation losses from wind as just slightly smaller than natural gas generation losses that week. But that analysis used the capacity of the state’s wind turbines to generate electricity, not what wind turbines would have actually generated if not for the outages.

Wind power feeds into the grid depending on weather conditions, and renewable energy sources typically have much higher potential to generate electricity than what is actually produced on a day-to-day basis; sometimes renewable power generates a lot and at other times none or very little. ERCOT uses detailed weather forecasts to estimate how much wind and solar power will be available to the grid.

In the updated analysis included in a Wednesday ERCOT meeting, the grid operator calculated that for the week of Feb. 14, natural gas power losses were several times that of wind generation.

[…]

The analysis also provided a more detailed picture of the reasons for natural gas outages, showing that disruptions in natural gas supply to the plants were a bigger share of the outages than initially estimated. Still, weather-related problems and equipment problems remained the biggest reasons for natural gas plant outages.

Here’s a pretty picture for you:

Sure would be nice if the Legislature spent less time attacking transgender kids and renewable energy, and more time working to make the grid more reliable and less likely to produce another big freeze, wouldn’t it?

ERCOT roundup

Just a few stories of interest that I didn’t feel like putting in their own posts…

ERCOT will argue it is immune from lawsuits.

The Electric Reliability Council of Texas will argue that it has governmental immunity that protects it from the at least 35 lawsuits that have been filed against the operator after February’s disastrous winter storm which killed dozens of people and created millions of dollars of damages.

“ERCOT has and will continue to assert that it is entitled to sovereign immunity due to its organization and function as an arm of State government,” the organization wrote in a Wednesday court filing requesting to consolidate several of the lawsuits it’s battling.

Sovereign immunity grants protections for state agencies against lawsuits, with some exceptions. And this isn’t the first time ERCOT has made the argument — with some success — that it should be shielded from lawsuits due to its role acting upon the directives of state agencies and lawmakers.

In 2018, an appeals court in Dallas ruled that ERCOT, despite the fact that it is a private nonprofit, has sovereign immunity after Dallas-based utility Panda Power sued the operator over allegations of flawed energy projections.

That immunity was challenged at the Texas Supreme Court last month. However, the high court refused to rule on the issue, claiming it lacked jurisdiction because the original case that posed the question was dismissed — a hotly contested opinion with four of the nine justices dissenting.

See here for the previous update. I don’t know what practical effect this might have if ERCOT succeeds, but as a general principle I think this kind of legal immunity needs to be carefully limited. Maybe it’s appropriate here, but there needs to be a strong argument for it.

ERCOT: Blackout primarily caused by power plants freezing up:

The massive loss in power generation during the Texas blackout in February was caused primarily by power plants freezing up under historically cold conditions, according to a new report by the Electric Reliability Council of Texas Tuesday.

The state’s grid operator reported that on the morning of Feb. 16, the most severe moment of the blackout, 54 percent of the loss of power supply stemmed from weather-related issues at power plants, while 12 percent was due to a lack of fuel such as natural gas. Some 51,000 megawatts of generation — more than half of the system’s capacity — were offline at the height of the blackouts at 8 a.m. of Feb. 16, ERCOT reported.

The findings come as state officials are debating how to fix the state’s energy system to prevent a repeat of the power outages that left millions of Texans without power for days on end.

The report Tuesday offered a fairly limited perspective on what went wrong, failing to explain why specific types of generation were unable to operate during the winter storm or what happened. But it will add questions to how well prepared ERCOT and the state’s power plants were for cold weather, despite warnings from the Federal Energy Regulatory Commission to winterize following a less severe cold snap in 2011.

[…]

After weather-related problems, the second biggest loss of generation on Feb. 16 was caused by planned or unexpected outages prior to the cold snap that began sweeping Texas earlier in the week, accounting for 15 percent of lost power supply.

Another 14 percent of lost generation came from equipment failures unrelated to the weather. Only four percent of outages were due to transmission problems or a short drop in the frequency of the power grid that occurred early Monday morning.

I don’t know enough to say what this means in terms of figuring out the best path forward, but I sure hope that the Legislature has some people who know how to read a report like this available to explain it to them. We screwed this kind of response up last time. We have no excuse for screwing it up again.

Faulting ERCOT, insurer says it shouldn’t have to cover storm damages:

ERCOT’s insurance company is seeking a court ruling excusing it from defending Texas’ electric grid manager from lawsuits or covering damages stemming from the catastrophic power failure in February.

The Cincinnati Insurance Co. on Tuesday sought relief from the U.S. district court in Austin, arguing it does not have to defend the Electric Reliability Council of Texas because it does not view the power outages as an accident, defined by the insurer as a “fortuitous, unexpected, and unintended event.” As a result, the company said it has no obligation under its insurance policy to cover ERCOT, which faces a flood of lawsuits after the winter storm.

“The allegations in the Underlying Lawsuits allege ERCOT either knew, should have known, expected, and/or intended, that Winter Storm Uri would cause the same power outages which occurred as a result of previous storms in Texas, including storms in 1989 and 2011,” the insurer said in court documents. “The Underlying Lawsuits allege the power outages caused by Winter Storm Uri were a result of the exact same failures including failures of the same generators which failed in the previous winter storms, and therefore, the power outages were foreseeable, expected, and/or intended.”

[…]

ERCOT’s insurance policy with Cincinnati Insurance, effective until June 2022, states that the insurer “will pay those sums that the insured becomes legally obligated to pay as damages because of ‘bodily injury’ or ‘property damage’ to which this insurance applies. We will have the right and duty to defend the insured against any ‘suit’ seeking those damages.’

The policy, however, says Cincinnati Insurance has no duty to defend ERCOT in cases in which the insurance policy does not apply, and retains the discretion to investigate any “occurance” and settle any claim or lawsuit that results from it. The insurer defines “occurrence” as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.”

In case you were wondering why ERCOT really doesn’t want to be sued. Also, when was the last time that an insurance company paid a claim without fighting it?

An open Texas power grid would boost reliability and renewables, experts say.

Since the February power outages, Texas legislators have been busy weighing a host of improvements for the state’s grid, from weatherizing equipment to shaking up oversight to partnering with the billionaire investor Warren Buffett on new emergency-use power plants.

But hardly any of them have focused on what some believe could be a more widespread fix: plugging into other U.S. power supplies.

While Texas has long opposed opening its grid to avoid federal oversight, and ostensibly to keep prices low, energy experts say the calculus is not what it once was and that the benefits of connecting to the outside world are at least worth examining, especially as renewable energy is poised for a major expansion under the Biden administration.

Not only is the state missing out on a potential lifeline in future blackouts, they warn, it also risks passing up billions of dollars in new investments for clean, marketable electricity.

“We export every form of energy you could imagine except electrons,” Michael Webber, a professor at the University of Texas at Austin, told reporters recently. “This is ridiculous,” he said. “Let’s at least study the option.”

There are some good arguments for this, and some reasonable ones for maintaining the independence of the Texas grid. Just because our setup is dumb and expensive and unreliable doesn’t mean it has to be that way, after all. But this is all an academic point, because there’s a zero percent chance this happens. Go ahead and write a report, but don’t ever expect Greg Abbott or Dan Patrick to read it.

The infrastructure bill and the power grid

Of interest.

President Joe Biden’s $2 trillion infrastructure plan could help rebuild Texas highways and ports and push broadband into rural parts of the state, where up to 31 percent of residents do not have access to high-speed internet.

It could help Texas weatherize the grid in a way that wouldn’t stick consumers with the bill as well as guard the Gulf Coast against hurricanes and address racial disparities that have made Latino and Black communities particularly vulnerable to natural disasters.

The infrastructure pitch is the president’s latest attempt to offer up money for things Republican leaders in Texas have been looking for funds to cover, as well as some that state lawmakers have been reluctant to take on.

But the president’s latest proposal also comes with a heavy emphasis on clean energy that some Texas Republicans have framed as an attack on the state’s oil industry, and Biden is calling for corporate tax increases to foot the bill.

[…]

Though Biden outlined the package in Pittsburgh on Wednesday, the pitch may as well have been aimed at Texas.

“As we saw in Texas and elsewhere, our electrical power grids are vulnerable to storms, catastrophic failures and security lapses to tragic results,” Biden said, pledging to “put hundreds of thousands of people to work” rebuilding a “modern, resilient and fully clean grid” and capping hundreds of thousands of dry oil and gas wells, many in Texas.

[…]

The infrastructure bill could also help pick up the tab — if not cover completely — the cost of weatherizing Texas’ power grid, which state lawmakers are so far requiring the industry to cover. Consumer advocates have warned those costs would then be passed down to consumers.

So far the White House has not detailed specific projects, but the plan calls for $100 billion to be spent on energy projects, including upgrades to electrical grids. [Michael Webber, an energy resources professor at the University of Texas at Austin] said given that Texas accounts for about 8 percent of the U.S. population and 10 percent of the GDP, a proportionate slice of that $100 billion would cover the estimated $8 to $10 billion price of weatherizing the grid.

But the president’s push for green energy in the infrastructure package already has state leaders pushing back.

The Texas Legislature is working to counteract tax credits for clean energy Biden would extend as his proposal aims for 100 percent carbon-free electricity by 2035. The state Senate passed a bill this week adding fees on solar and wind electricity production in the state in hopes of boosting fossil fuels.

More far-reaching proposals for clean energy in the plan could have major implications for the Texas oil and gas industry. Republicans are calling it Biden’s latest attack on fossil fuels after moves to end the Keystone XL pipeline and pause drilling on federal lands.

As Biden is calling for pouring $174 billion to juice the electric vehicle market and another $213 billion to retrofit 2 million homes and businesses to increase energy efficiency, he is also proposing spending $16 billion plugging oil wells — an endeavor Webber said could be a multi-billion dollar industry in Texas offering plenty of jobs to oil workers worried about Biden’s clean energy bent.

“This is a multi-hundred million to multi-billion dollar economic opportunity,” he said. “If you’re looking to be angry, you could be angry about what this might do to oil and gas — but I would say actually it’s a pretty good opportunity.”

As a reminder, right now this is the Infrastructure Plan That Is Not Yet A Bill, though the House is now working on what it will look like as legislation. The Texas Senate has passed its bill to overhaul the electricity market, which has some good things in it as well as that dumb and petty attack on renewable energy, which last I checked was still big business in Texas. The fact that Biden’s plan includes ending tax subsidies to fossil fuel companies will I’m sure have heads exploding all over the state. I have to assume that federal funds to cover the cost of weatherizing the grid would be scooped up and used, though never acknowledged and certainly not voted for by Republicans.

It’s hard to know how any of this will play out, given that we don’t have a piece of legislation yet, and we very much have to take into account the whole filibuster obstacle in the Senate. I have read elsewhere that the legislative calendar is such that this would all need to be done by late summer, so to say the least it’s a race. As a reminder, if you want to know more about the plan, see Slate and the Trib.

Winter storm death count now at 111

A revision of the numbers. Expect this to happen at least once more.

At least 111 Texans died as a result of last month’s winter storm, according to updated numbers released Thursday by the state Department of State Health Services.

The newly revised number is nearly twice what the department had estimated last week, and will likely continue to grow. Some of Texas’ larger counties, such as Tarrant County, have yet to report any storm-related deaths.

The majority of people died from hypothermia, but health officials also attributed deaths to “motor vehicle accidents, carbon monoxide poisoning, medical equipment failure, exacerbation of chronic illness, lack of home oxygen, falls and fire.”

[…]

Harris County reported 31 storm-related deaths, the largest share in the state. Travis County followed with nine deaths.

Health officials will continue to update their preliminary findings weekly.

According to DSHS, the data is compiled from forms that certify deaths are related to a disaster, notification from death certifiers and analyses of death certificates from state epidemiologists.

See here for the background. As a reminder, there were 103 deaths attributed to Hurricane Harvey, so the February freeze event (I’m sorry, I’ve not adopted the new paradigm of naming winter storms, so I have not and probably will not again refer to this as “Winter Storm Uri”) has now surpassed that total. And will likely put some more distance between them when the next month’s data is available.

There has been a bit of legislative action on this front.

A bill that would overhaul Texas’ energy industry — including mandating weatherization for natural gas and power generators — was approved by a Texas Senate committee on Thursday.

The sweeping Senate Bill 3, sponsored by Republican state Sen. Charles Schwertner of Georgetown, includes a number of reforms that have been floating around the state Capitol since last month’s deadly winter storm left millions without electricity during freezing temperatures. While the Texas House earlier this month approved a package of similar, standalone bills, Thursday’s vote represents the first substantive action on the issue by the upper chamber.

“This is an important issue to get right for the people of Texas, for the future of Texas, for the economy of Texas,” Schwertner said.

Chief among the bill’s provisions is a requirement that all power generators, transmission lines, natural gas facilities and pipelines make upgrades for extreme weather conditions — a process known as weatherization. Many power generators and gas companies were ill-suited for the freezing temperatures in February, which led gas pipelines to freeze and power transmission to falter.

The measure would delegate rulemaking authority to the Texas Railroad Commission, which regulates the oil and gas industries, and the Texas Public Utility Commission, which regulates the electric and telecommunication industries. If a gas or energy company fails to comply with the weatherization rules, it would face a fine up to $1 million for each offense. The bill does not address funding to pay for the required upgrades.

A Texas House committee earlier this month passed a similar weatherization bill. But the requirements only apply to electric companies, not natural gas companies. In public testimony before the Legislature, Railroad Commission Chair Christi Craddick largely dodged talks of winterizing the natural gas supply chain.

There’s more, so read the rest. I don’t know enough to offer a general critique of these bills, but I would certainly argue that natural gas companies should have the same weatherization requirements. All of these bills are sure to change as they move from one chamber to the other, so we’ll need to see where they wind up.

Republicans are determined to learn the wrong lessons from the blackouts

It’s kind of amazing, and yet completely on brand.

With millions of Texans having lost power during the winter storms, key players in the Legislature say one of the most immediate reforms they will push for is recalibrating the state’s electricity grid to ensure more fossil fuels are in that mix and fewer renewables.

While all energy sources were disrupted during the historic freeze, Republican lawmakers who control the Legislature say renewables have been given all the attention over the years, yet proved to be unhelpful during the state’s crisis.

“It’s cool to be into wind and solar these days, but the problem is it leaves us frigid in the winter,” said State Sen. Paul Bettencourt, a Houston Republican who leads the GOP caucus in the Texas Senate.

Officials with the Electric Reliability Council of Texas said most of the generating plants that went offline this week were natural gas, coal or nuclear facilities. But still, Republicans have singled out wind and solar as targets over the objections of Democrats and renewable energy advocates.

Texas utilities ratepayers have funded more than $7 billion over the last eight years building transmission lines to take wind power from West Texas to the big cities. It’s made Texas the biggest wind producer in the nation.

But Bettencourt and other Republicans say advantages like federal subsidies for wind and solar have to be evened out.

“We need a baseload energy generation strategy in Texas that is reliable and not based upon renewables so strongly,” he said.

Jared Patterson, R-Frisco, this week reupped a bill he filed last session that would require ERCOT and the Public Utility Commission to write rules that would “eliminate or compensate for market distortion caused by certain federal tax credits.”

“It’s not just the frozen wind turbines; it’s the fact that they even exist that is creating the problem,” said Patterson, who works as an energy consultant. “Their existence, their heavily subsidized existence on our grid is creating a shortage of energy supply because no one else can compete against them.”

[…]

Blaming renewables is misguided and politically motivated, said Adrian Shelley, director of the Texas office of Public Citizen, a consumer advocacy group.

“There is no energy source that doesn’t receive subsidies,” Shelley said. “There have been energy tax credits for fossil fuel sources for a hundred years, so to target the renewable tax credit … it’s pretty disingenuous.”

[…]

But while there may be reforms to ERCOT, not many Republicans are talking about the prospect of ordering the state’s nearly 700 power plants to invest in weatherization and what that would cost.

ERCOT officials said earlier this week in a statewide press conference that while it was recommended power plants weatherize after winter storms in 2011 knocked out power, those were voluntary requests and not mandatory.

Jon Rosenthal, a Houston Democrat and senior mechanical engineer in the oil and gas industry, said he is working on legislation that would build in more reserve energy supply for Texas, such as by hooking up the state to the nationally interconnected system, or offering financial incentives for providers to increase back-up power.

Rosenthal would also like to see reliability standards introduced that require generators to weatherize their systems. He said he knows that adding more regulations will be an uphill battle in the Republican-majority Legislature but believes there is a “happy medium” that can be struck.

“While the common argument ‘we don’t want regulation so we can provide electricity as cheaply as possible’ does provide cheap energy a lot of the time, these disasters are horrendously expensive,” Rosenthal said. “I’ve heard insurance folks saying this could be the costliest ever natural disaster in Texas. So you make a little bit of an investment in your infrastructure to ensure that you don’t have these disastrous consequences.”

He added: “And it’s not just the cost of it. It’s the human suffering.”

How it is that they could have missed the voluminous reporting about how the same freeze we all just endured also caused problems for gas and coal plants since they both involve water and that water was frozen solid is an eternal mystery, but here we are. We’ve literally had thirty years’ of warnings about the need to weatherize our power plants and wind turbines, and this is the response we get from Paul Bettencourt and his cronies. It would cost money – I forget where I read this now, but I saw one back-of-the-envelope estimate of about $2 billion for the whole system – but that can be paid in part by the power generators and in part by the state, with cash from the Rainy Day Fund or a bond issuance if need be.

Doing that might require changing the financial incentives for the operators, and it might require shudder regulating the energy market – certainly, ERCOT or some other governing body will need enforcement power, because simply asking the operators nicely to invest in weatherizing hasn’t worked so far – and it even might require rejoining the national power grid, which has its own pros and cons but would come with federal enforcement of weatherization standards. There are many viable options. We don’t have to choose the stupid, head-in-the-frozen-tundra option that Bettencourt et al seem hellbent on doing.

One more thing, which I find equal parts amusing and puzzling: All this antagonism towards wind energy seems to overlook the fact that a large number of wind farms and turbines are in the Panhandle and West Texas, easily two of the most Republican parts of the state. Do these Republican legislators and other currently trashing wind energy – the Observer quotes a Facebook post by Sid Miller that says “We should never build another wind turbine in Texas”, for instance – not realize that they’re kicking sand on their own people? I don’t even know what to make of that, but I do know that part of the 2022 Democratic message needs to be targeted at those folks. Texas Monthly has more.

It could have been worse

Hard to imagine, but this would qualify.

Texas’ power grid was “seconds and minutes” away from a catastrophic failure that could have left Texans in the dark for months, officials with the entity that operates the grid said Thursday.

As millions of customers throughout the state begin to have power restored after days of massive blackouts, officials with the Electric Reliability Council of Texas, or ERCOT, which operates the power grid that covers most of the state, said Texas was dangerously close to a worst-case scenario: uncontrolled blackouts across the state.

The quick decision that grid operators made in the early hours of Monday morning to begin what was intended to be rolling blackouts — but lasted days for millions of Texans — occurred because operators were seeing warning signs that massive amounts of energy supply was dropping off the grid.

As natural gas fired plants, utility scale wind power and coal plants tripped offline due to the extreme cold brought by the winter storm, the amount of power supplied to the grid to be distributed across the state fell rapidly. At the same time, demand was increasing as consumers and businesses turned up the heat and stayed inside to avoid the weather.

“It needed to be addressed immediately,” said Bill Magness, president of ERCOT. “It was seconds and minutes [from possible failure] given the amount of generation that was coming off the system.”

Grid operators had to act quickly to cut the amount of power distributed, Magness said, because if they had waited, “then what happens in that next minute might be that three more [power generation] units come offline, and then you’re sunk.”

Magness said on Wednesday that if operators had not acted in that moment, the state could have suffered blackouts that “could have occurred for months,” and left Texas in an “indeterminately long” crisis.

The worst case scenario: Demand for power overwhelms the supply of power generation available on the grid, causing equipment to catch fire, substations to blow and power lines to go down.

If the grid had gone totally offline, the physical damage to power infrastructure from overwhelming the grid can take months to repair, said Bernadette Johnson, senior vice president of power and renewables at Enverus, an oil and gas software and information company headquartered in Austin.

“As chaotic as it was, the whole grid could’ve been in blackout,” she said. “ERCOT is getting a lot of heat, but the fact that it wasn’t worse is because of those grid operators.”

Okay, you’ve convinced me, that would have been Bad. I can’t even begin to fathom what life in that scenario would look like. But look, what this means more than ever is we didn’t do a proper job of assessing and mitigating the risks that we faced. This was not an unforeseen event, nor was it a “five hundred year flood” situation, since we had extreme weather like this in 2011 and 1989, well within our institutional memory. What’s fascinating about all this is that the folks at ERCOT did a pretty good job estimating the demand that the grid would face. Where they completely missed the boat was on the supply side. Rice professor Daniel Cohan explains:

ERCOT didn’t do too badly predicting peak demand — 67 GW in its extreme scenario. We don’t know how high the actual peak would have been without these rolling blackouts, but perhaps around 5 GW higher, with some conservation by industrial consumers.

Scheduled maintenance played a role too, as plants tune up for summer peaks. Why so much of that maintenance continued amid week-ahead forecasts of an Arctic blast deserves a closer look.

But ERCOT’s biggest miss came in preparing for outages at what it thought were “firm” resources — gas, coal, and nuclear. Those outages topped 30 GW, more than double ERCOT’s worst-case scenario. Just one of those gigawatts came from a temporary outage at a nuclear unit. Most of the rest came from gas.

That doesn’t necessarily mean a lot of individual gas power plants broke down. Most outages came because delivery systems failed to supply gas to those plants at the consistent pressures that they need.

These failures highlight the unique vulnerabilities of relying so heavily on natural gas for power. Only gas electricity relies on a continuous supply of a fossil fuel delivered from hundreds of miles away. And that fuel is also needed for heat. So when an Arctic blast drives up demand and drives down supply of heat and electricity at the same time, power plants languish in line while homes and hospitals get the heating fuel they need.

That makes these blackouts an energy systems crisis, not just a power crisis. Every one of our power sources underperformed. Every one of them has unique vulnerabilities that are exacerbated by extreme events. None of them prepared adequately for extreme cold.

That was adapted from this Twitter thread, and you should read them both. There’s a lot that can and should be done to improve the system, and we need to think of it in systemic terms. Even Greg Abbott seems to think we need to think big:

I mean, I don’t have any faith in anything Abbott wants to do, but at least he’s not talking about something that’s completely disconnected from, or opposite to, the problem. That’s better than what we’re used to. Maybe the Lege can take it from there.

Winter storm/blackout/boil water situation, Day 439

I may be a bit off in my counting of the days, but it’s close enough. Between my house and my in-laws’ house, I have had power for maybe 14 hours total since Monday morning, with a bit more time for Internet thanks to a backup battery we have here that we can plug the cable modem and Eero router into. For obvious reasons, I’m not able to stay on top of the news as a result. The blackouts will continue for at least another day or so, the water needs to be boiled until further notice, we have a cracked water pipe but at least it’s under the house and not inside a wall and we may try to wrap some plumber’s tape on it while we wait in line to get it fixed, but all things considered we are fine. So many people are so much worse off, it’s heartbreaking and infuriating. If there’s anything you can do to help someone in need – friend, neighbor, complete stranger – please do so. We’re all in this together.

With that in mind, allow me to offer a hearty Fuck You to Rick Perry, for suggesting that all of the suffering and deprivation are a justifiable price that we should be willing to pay for not having a more regulated power generation system. I am truly at a loss for words here. May we all remember this in 2022, when we get to vote on who runs our state.

On the subject of ERCOT and the system we do have, let me key in on one part of this conversation with energy expert Joshua Rhodes about why things are the way they are here.

TM: When it comes to frozen wells and wind turbines, or other infrastructure that is physically affected by the cold, are there preventative measures that could have been taken, such as winterizing?

JR: There are plenty of oil and gas wells in Pennsylvania and North Dakota. It gets a lot colder there than it does here, even today. There are ways of producing gas. All of that infrastructure is site-specific. I would assume it’s more expensive. We could winterize wind turbines better but it would cost more money. We can winterize pipes on power plants, but it would cost more money. We have to decide, what level of risk are we willing to take and what are we willing to pay for?

TM: How could this have been prevented?

JR: Could we have built a grid that would have fared better during this time? Of course we could have. But we could also build a car that could survive every crash you could possibly throw at it, but it would be very expensive and not many people would probably be able to afford it. At some point we do a cost-benefit analysis of how much risk we are willing to take. We have never had weather like this thrown at us, so it’s not surprising to me that we don’t have infrastructure that can support it.

There are no snow plows out on the road. They’d be handy right now, of course, but we don’t use them very often. We don’t have that capability in the state generally because we don’t want to pay for it. We may decide now as a society that we do, but that’s a conversation we’re going to have to have with our collective self, if you will.

I thought Rhodes was way too deferential to the power generation industry overall, but this here is nearly as tone deaf as Perry’s idiocy. Yeah, sure, we can’t prepare for every possible contingency, but surely we can all recognize that a risk that leaves millions of people without power for multiple days in the midst of freezing temperatures is one that we ought to consider mitigating. As someone who works in cyberdefense at a large company, I can assure you we mitigate the hell out of much smaller risks than that. Actual rolling blackouts that leave a modest number of people without power for a couple of hours at a time is one thing. This was very much not that. Worse, it had already happened ten years ago and was studied at the time, yet nothing of any substance was done. This is a heads-must-roll situation. Anyone who doesn’t see it that way is part of the problem.

There’s a lot more out there but I only have so much battery life on the laptop. Stay safe, stay warm, and boil that water – if you have it – until told otherwise.

So what’s going on with the power supply?

First, as a personal update, we have been without power at our house since about 7 PM on Monday, and we had no Internet on Tuesday morning. I’m writing this on Tuesday evening from my in-laws’ house, where they have had both since earlier in the day. Maybe by the time you read this we’ll be able to return home, but maybe not. Expect my output to be spotty for the next few days – I happened to have the two Fort Bend posts queued up over the weekend, so that helped. From here on out, it’s up in the air.

Let’s start with the basic question of what went wrong?

Millions of Texans were without heat and electricity Monday as snow, ice and frigid temperatures caused a catastrophic failure of the state’s power grid.

The Texas power grid, powered largely by wind and natural gas, is relatively well equipped to handle the state’s hot and humid summers when demand for power soars. But unlike blistering summers, the severe winter weather delivered a crippling blow to power production, cutting supplies as the falling temperatures increased demand.

Natural gas shortages and frozen wind turbines were already curtailing power output when the Arctic blast began knocking generators offline early Monday morning.

The Electric Reliability Council of Texas, or ERCOT, which is responsible for scheduling power and ensuring the reliability of the electrical network, declared a statewide power generation shortfall emergency and asked electricity delivery companies to reduce load through controlled outages.

More than 4 million customers were without power in Texas, including 1.4 million in the Houston area, the worst power crisis in the state in a decade. The forced outages are expected to last at least through part of Tuesday, the state grid manager said.

CenterPoint Energy, the regulated utility that delivers electricity to Houston-area homes and provides natural gas service, started rolling blackouts in the Houston region at the order of state power regulators. It said customers experiencing outages should be prepared to be without power at least through Monday.

“How long is it going to be? I don’t know the answer,” said Kenny Mercado, executive vice president at the Houston utility. “The generators are doing everything they can to get back on. But their work takes time and I don’t know how long it will take. But for us to move forward, we have got to get generation back onto the grid. That is our primary need.”

Dan Woodfin, ERCOT’s senior director of system operations, said the rolling blackouts are taking more power offline for longer periods than ever before. An estimated 34,000 megawatts of power generation — more than a third of the system’s total generating capacity — had been knocked offline by the extreme winter weather amid soaring demand as residents crank up heating systems.

[…]

Ed Hirs, an energy fellow in the Department of Economics at the University of Houston, blamed the failures on the state’s deregulated power system, which doesn’t provide power generators with the returns needed to invest in maintaining and improving power plants.

“The ERCOT grid has collapsed in exactly the same manner as the old Soviet Union,” said Hirs. “It limped along on underinvestment and neglect until it finally broke under predictable circumstances.

“For more than a decade, generators have not been able to charge what it costs them to produce electricity,” said Hirs. “If you don’t make a return on your money, how can you keep it up? It’s like not taking care of your car. If you don’t change the oil and tires, you can’t expect your car to be ready to evacuate, let alone get you to work.”

Woodfin said ERCOT and generators followed best practices for winterization, but the severity of the weather was unprecedented — “well beyond the design parameters of an extreme Texas winter.”

The hit to power generation came as frigid weather froze wind turbines and forced outages among natural gas and other power plants. Most of the power knocked offline came from thermal sources, Woodfin said, particularly natural gas.

Yes, the vast bulk of the drop in capacity came from natural gas.

Failures across Texas’ natural gas operations and supply chains due to extreme temperatures are the most significant cause of the power crisis that has left millions of Texans without heat and electricity during the winter storm sweeping the U.S.

From frozen natural gas wells to frozen wind turbines, all sources of power generation have faced difficulties during the winter storm. But Texans largely rely on natural gas for power and heat generation, especially during peak usage, experts said.

Officials for the Electric Reliability Council of Texas, or ERCOT, which manages most of Texas’ grid, said that the primarily cause of the outages on Tuesday appeared to be the state’s natural gas providers. Many are not designed to withstand such low temperatures on equipment or during production.

By some estimates, nearly half of the state’s natural gas production has screeched to a halt due to the extremely low temperatures, while freezing components at natural gas-fired power plants have forced some operators to shut down.

“Texas is a gas state,” said Michael Webber, an energy resources professor at the University of Texas at Austin. While he said all of Texas’ energy sources share blame for the power crisis — at least one nuclear power plant has partially shut down, most notably — the natural gas industry is producing significantly less power than normal.

“Gas is failing in the most spectacular fashion right now,” Webber said.

More than half of ERCOT’s winter generating capacity, largely powered by natural gas, was offline due to the storm, an estimated 45 gigawatts, according to Dan Woodfin, a senior director at ERCOT.

The outages during this storm far exceeded what ERCOT had predicted in November for an extreme winter event. The forecast for peak demand was 67 gigawatts; peak usage during the storm was more than 69 gigawatts on Sunday.

It’s estimated that about 80% of the grid’s capacity, or 67 gigawatts, could be generated by natural gas, coal and some nuclear power. Only 7% of ERCOT’s forecasted winter capacity, or six gigawatts, was expected to come from various wind power sources across the state.

Woodfin said Tuesday that 16 gigawatts of renewable energy generation, mostly wind generation, is offline and that 30 gigawatts of thermal sources, which includes gas, coal and nuclear energy, is offline.

So don’t blame wind, or at least don’t blame it more than you blame gas. And wherever you’re from, remember to have a little compassion for the suffering of others. Don’t be like this, and especially don’t be like this.

It’s been a long day, and like much of the state, I’m out of energy. If you want to read more, Bloomberg and Gizmodo and other sources are out there. I understand that the ERCOT situation has now been added to the list of emergency items for the Lege to consider. I’d suggest that it’s the only real emergency among those items, and it’s not going to be fixed without a major overhaul of the kind that this Legislature and this Governor will not accept, but at least it’s on the agenda. Assuming they can restore power to the Capitol in time for them to do anything about it, of course. Stay warm and safe, y’all.

UPDATE: Here’s some cheerful news.

Texas’ power grid operators can’t predict when outages might end, Electric Reliability Council of Texas officials said Tuesday.

As of 6 p.m. more than 3 million Texans, many of them in North Texas, are enduring extended outages as icy conditions have settled in across the region.

ERCOT, the agency that oversees the state’s power grid, is trying to avoid a total blackout by instructing utility companies, including Oncor Electric Delivery, to cut power to customers.

“We needed to step in and make sure that we were not going to end up with Texas in a blackout, which could keep folks without power — not just some people without power but everyone in our region without power — for much, much longer than we believe this event is going to last, as long and as difficult as this event is right now,” ERCOT CEO Bill Magness said.

When reporters pressed for a timeline, he and Senior Director of System Operations Dan Woodfin could not say how much longer the outages would last. An uncontrolled blackout could leave Texans without power for “an indeterminate amount of time,” maybe a month, Magness said.

We’re going to need some better answers than that.

Beware of blackouts

This would not be great.

The nonprofit organization that operates Texas’ power grid warned Sunday that it may be forced to impose rolling outages in the state on Monday and Tuesday as a major winter storm brings record low temperatures and causes massive demand for electricity.

Power reserves in the state were stable Sunday afternoon, but the Electric Reliability Council of Texas is anticipating the need to go into emergency operations from Sunday evening until Tuesday morning, said Dan Woodfin, senior director of system operations for ERCOT.

“During this fairly unprecedented cold weather event across the entire state, electric demand is expected to exceed our previous winter peak record set in January of 2018 by up to 10,000 megawatts,” Woodfin said. “In fact, the peak demand on Monday and Tuesday is currently forecasted to meet or exceed our all time summer peak demand of 74,820 megawatts.”

Texans purchase their electricity from companies, cooperatives or cities, but ERCOT works with those utility providers to manage the flow of power to more than 90% of the state.

If demand comes closer to capacity, ERCOT can declare a level-one, level-two or level-three energy emergency alert, which allows the council to use additional resources to respond to demand. According to ERCOT’s alert steps, the organization can import power from other regions, request extra power from transmission companies and release generation reserves under these alerts.

Temporary power outages are a last resort and would generally only occur after other resources had been exhausted. Woodfin said outages would be more likely to occur on Monday and Tuesday, but there is “certainly a possibility” that something could change and they could occur Sunday evening.

“If the additional resources available during an EEA (are) still not sufficient to balance generation and load, and we still don’t have enough resources to serve the demand, then we could have to implement what’s called rotating outages … so that we’ve got enough resources to cover what’s what’s left,” Woodfin said.

Outages typically last from 10 to 45 minutes for residential neighborhoods and small businesses, but the exact response would vary by transmission company, according to protocols for emergency alerts from ERCOT. ERCOT has only instituted three systemwide rotating outages in its history. The most recent one was more than 10 years ago on Feb. 2, 2011 in response to a blizzard affecting the state.

So good news, this is a very rare event, and ERCOT has tools at its disposal to make it less likely to occur. Bad news, the fact that they’re talking about it at all, and the fact that it would occur at a time when it’s super duper cold. Bundle up, turn off lights and try not to overdo your own electricity usage, and hope for the best.

UPDATE: Wow.

Nearly half of Texas’ installed wind power generation capacity has been offline because of frozen wind turbines in West Texas, according to Texas grid operators.

Wind farms across the state generate up to a combined 25,100 megawatts of energy. But unusually moist winter conditions in West Texas brought on by the weekend’s freezing rain and historically low temperatures have iced many of those wind turbines to a halt.

As of Sunday morning, those iced turbines comprise 12,000 megawatts of Texas’ installed wind generation capacity, although those West Texas turbines don’t typically spin to their full generation capacity this time of year.

Fortunately for the Electric Reliability Council of Texas, which manages the state’s electric grid, the storm’s gusty winds are spinning the state’s unfrozen coastal turbines at a higher rate than expected, helping to offset some of the power generation losses because of the icy conditions.

It’s going to be a strange couple of days. Hold on.

Beware the renewable energy disinformation

It’s out there, in more ways than one.

David Dunagan doesn’t want a 760-acre solar power plant to be built across his fenceline. The Old Jackson Power Plant will replace farmland in Van Zandt County with gleaming, metal panels. Though the 127-megawatt plant will provide clean, renewable energy for some of the nearly 7.5 million residents in the Dallas-Fort Worth metroplex Dunagan has been organizing local landowners to stop it for the last year.

Generations of landowners have raised cattle or grown crops like hay and sweet potatoes in this slice of rural northeast Texas, and turning those fields into an industrial power plant isn’t an easy pill to swallow. One of Dunagan’s major worries is the environmental impact that the Old Jackson plant could have. “It’s literally in the middle of East Texas tornado alley,” he says. “There is a propensity for these facilities to get torn up, and the materials are scattered everywhere. These panels, there are several heavy metals used in thin layers,” he adds. “It’s been proven that these panels tend to leach over time, into the soil and water.”

Thing is, that hasn’t been proven. That’s because it’s not true. According to Wyatt Metzger, a scientist at the U.S. Department of Energy’s National Renewable Energy Laboratory, there’s little truth to the leaching-panel claim. Concerns about what happens if panels are discarded improperly at the end of their 30-year lifespan, are legitimate, however. But the idea that inclement weather could turn a functioning solar farm into a Superfund site littered with lead and cadmium-laced debris has caught on across the country as solar energy developments take off.

It’s a talking point that Dunagan picked up from so-called experts such as Michael Shellenberger, a staunchly pro-nuclear environmentalist who’s called climate activists “alarmists.” It’s been repeated by a national group called Citizens for Responsible Solar, which presents itself as a grassroots coalition, but was formed by a Republican consultant in Virginia. The myth has been pushed by the Foundation for Economic Education and the benign-sounding Institute for Energy Research, both libertarian think tanks that have direct ties to billionaire fossil fuel executives and climate change denialists Charles Koch and David Padden. Koch and Padden fund the Heartland Institute, one of the most infamous climate denial groups.

[…]

Disinformation about renewable energy isn’t new. For decades, fossil fuel companies and conservative think tanks have painted wind turbines as a bird-killing, unreliable, and property-value damaging source of energy. “We’re starting to see the same forces shift over, focusing on solar farms,” says Dave Anderson, a researcher with the Energy and Policy Institute who tracks fossil-fuel-funded disinformation about renewable energy. At the same time, solar energy is on the cusp of a growth spurt: Texas’ solar capacity is on track to grow by 150 percent this year. A similar upward trajectory is expected next year.

Many of the state’s largest solar plants have been built in West Texas, where land is cheap and sun is plentiful. In many of these counties, landowners were already used to having pumpjacks and wind turbines on their sprawling ranches, so solar wasn’t very different. Now, as the price of solar technology has dropped drastically, it’s more feasible for solar companies to locate their plants closer to energy-consuming cities, says Josh Rhodes, a researcher at the University of Texas at Austin’s Energy Institute. In places like Van Zandt, Bell, or Wharton County, just outside of Sugar Land, developers will save on the cost of electric transmission from far West Texas. But here, residents aren’t as welcoming of the new, industrial developments.

This is going to get worse as the Biden administration makes a big push towards renewables as part of its climate change agenda. Be aware of what the propaganda is and be prepared to push back on it when you see or hear it.

Matt Glazer: To see boon, clean energy needs Congress

(Note: The following is a guest post that was submitted to me. I occasionally solicit guest posts, and also occasionally accept them from people I trust.)

I’m a bit of an Austin-area expert when it comes to weird homes. So, when I bought my own home last year—going in a more traditional route—I was surprised when I was left no less transfixed. Our builder had prioritized solar panel installations and, in the weeks, after settling in, I made a routine of watching the monitor tick up as our 12 panels fed energy back into the grid. Truth is I’m not the only one mesmerized. Watching the green bar climb and doing what we can to be a net producer of clean, affordable energy is a fun little game. Luckily, clean energy has caught the attention of Texans just as easily as the panels on my roof catch rays.

For more than a century, Texas has asserted itself as a national and global energy leader. Much of this legacy is owed to our wells of oil, but more so it is owed to our ability to build an economy around those prospects. Clean energy can continue to expand them beyond the subterranean. We were the first state to codify an energy efficiency resource standard after all and already Texas is top five in the nation for solar, and first in the nation for wind capacity. If you have ever driven through Texas, you can see evidence of this across the horizon from the panhandle to the coast.

All told—from renewables to clean vehicles, energy efficiency, clean fuels, and grid and storage—nearly a quarter of a million jobs were held in Texas’ clean energy industry last year. COVID-19 has detracted from those numbers depressing the state’s clean energy workforce by 10%—at least temporarily. Despite the setback, a growing commitment to reduce carbon emissions means clean energy is no longer being considered an alternative and instead as a necessary and growing component of diversified portfolios.

This will assure its subsistence, but while consistent demand could pull the industry back bit-by-bit, a major federal investment just might sweep the Lone Star State into this millennia’s energy boon. What the country needs now is a post-pandemic economic plan that spurs energy innovation, builds out 21st century infrastructure and continues driving down carbon emissions while creating 21st century jobs.

Though we often consider clean energy at scale, like in the case of utility companies, small businesses have played a significant role in clean energy’s early trajectory. In 2019, nearly two out of every three clean energy workers—of which there were 3.3 million in 2019—were employed by a small business. But, with manufacturing advancements driving down costs, the popularity of reduced carbon emissions rising and a steady churn of state-of-the-art tech reaching the market, clean energy’s entrepreneurial scene is far from saturated. One can even still imagine the potential for a new generation of Texas energy titans eventually adding to an already storied energy tradition.

To get there, however, requires a commitment not just from dedicated contractors like my own or local officials or even from Fortune 100 corporations, but from national leadership representing us in Congress. This issue is not a partisan one but an economic one, given the country’s current straits, we cannot afford to let the clean energy wallow in its COVID depression.

To truly capitalize on the economic and environmental potential of the vast prairies, strong wind gusts and access to persistent sun that outfit Texas, not to mention an intrepid workforce, we need our representatives and senators to put into action plans that bolster clean energy development and job creation while continuing to build on America’s leadership driving down carbon emissions.

I am grateful to have low cost, high production solar cells on my home. I am grateful for the incentives that made it possible to do something good and lower my total costs. I look at the energy I am creating for my city and know that an install team, builder, designer, electrician, and manufacturing company all created jobs. Jobs with an eye towards the future of Texas. Congress has an opportunity to continue to foster this innovation so we can be leaders in this established clean energy economy.

Matt Glazer is the past Executive Director of Progress Texas and co-founder of Blue Sky Partners.

We can make the end of coal in Texas happen

It’s already happening. It just needs a bit of a boost.

Texas might have the perfect environment to quit coal for good.

Texas is one of the only places—potentially in the world—where the natural patterns of wind and sun could produce power around the clock, according to new research from Rice University.

Scientists found that between wind energy from West Texas and the Gulf Coast, and solar energy across the state, Texas could meet a significant portion of its electricity demand from renewable power without extensive battery storage. The reason: These sources generate power at different times of day, meaning that coordinating them could replace production from coal-fired plants.

“There is no where else in the world better positioned to operate without coal than Texas is,” said Dan Cohan an associate professor of civil and environmental engineering at Rice University who co-authored the report with a student, Joanna Slusarewicz. “Wind and solar are easily capable of picking up the slack.”

[…]

Coal still generates about 25 percent of the state’s power, but its share is shrinking. Since 2007, coal used in generating electricity has decreased 36 percent. Last year, Vistra Energy of Dallas shut down three coal-fired plants in Texas, citing changing economics in the power industry that make it difficult for coal to compete.

Texas has more than 20,000 megawatts of installed wind capacity, which could rise to 38,000 megawatts by 2030, according to the U.S. Department of Energy.

Solar energy, however, has developed much more slowly in Texas, despite the abundance of sunshine. Texas installed about 2,500 megawatts of solar capacity in 2018.

The research article is here. Texas has done well generating wind energy, but needs to step it up with solar. The Lege could provide some incentives for this, so maybe mention to your State Rep the next time you call their office that this would be a productive thing to do.

The war on coal is over in Texas

Coal lost, and good riddance.

Wind power capacity edged out coal for the first time in the Texas history last week after a new 155-megawatt wind farm in Scurry County came online. The farm in question is the Fluvanna Wind Energy Project, located on some 32,000 acres leased from more than 130 landowners.

Fluvanna pushed total wind power capacity in the state to more than 20,000 megawatts, while coal capacity stands at 19,800 megawatts and is slated to fall to 14,700 megawatts by the end of 2018 thanks to planned coal powerplant closures. Next year, Luminant will shutter three coal-fired plants—Monticello, Sandow, and Big Brown—and San Antonio’s CPS Energy will close J.T. Deely Station. Wind capacity in the state will reach 24,400 megawatts by the end of 2018, according to projections from Joshua Rhodes, a research fellow at UT Austin’s Energy Institute.

But capacity is one thing, electricity generation is another. In the first ten months of 2017, wind generated 17.2 percent of power in the state, and coal 31.9 percent, according to ERCOT. But wind should soon see large gains there. “By our analysis, in 2019 we’ll have more energy from wind than coal,” Rhodes said.

Don’t anyone tell Donald Trump.

Getting the (wind and solar) power to the people

It’s all about the transmission lines.

The Lone Star state is by far the largest state for wind power, with nearly 18,000 megawatts of wind generation capacity already built and another 5,500 megawatts—nearly equal to California’s total installed capacity—planned. The biggest driver of that wind boom was an $8 billion transmission system that was built to bring electricity from the desolate western and northern parts of the state to the big cities of the south and east: Dallas, Austin, San Antonio, and Houston.

Completed in 2014, the new wires—known as Competitive Renewable Energy Zones, or CREZ—have the capacity to carry some 18,500 megawatts of wind power across the state. That’s not enough to handle the 21,000 megawatts of capacity Texas expects to reach this year, and it’s creating a situation that’s straining the transmission system and potentially resulting in periods where the turbines go idle.

Now the state’s utilities and transmission companies are faced with spending hundreds of millions more to upgrade the system, demonstrating just how costly and complicated it is to shift from fossil fuels to renewable sources of energy, even where those sources are abundant.

EDF Renewable Energy, which owns five wind farms in northern Texas, and other operators have proposed adding second lines to existing transmission lines from the panhandle, where much of the new wind-farm construction is happening. Doing so, EDF says, will accommodate nearly 4,000 megawatts of new generation expected in the panhandle over the next several years.

“If some of these projects get developed in the panhandle and they haven’t done the upgrades to the grid, for sure those farms will be curtailed,” says Frank Horak, the CEO of Austin-based energy consultancy Astek Energy.

[…]

Another looming challenge is an expected surge in solar projects in Texas. The state ranks third in terms of total solar capacity, and another 6,000 megawatts of solar projects are planned. That will further strain the grid.

“Last time I looked there were 42 solar projects in far West Texas that were in the interconnection queue waiting for new transmission because there’s a bottleneck there now,” says Horak. Most of those projects will remain on hold until new wires are in place; some may never be built.

Seems to me to be a supply and demand problem, with the supply of transmission not keeping up with the demand of energy production. Texas’ population continues to grow, and the grid is increasingly dependent on wind and solar power to meet usage peaks, so it would be very shortsighted not to keep investing in more transmission capacity. This ought to be a no-brainer.

Pity the poor utilities

Sorry, but low electricity prices, especially when they are aided by record amounts of wind power generation, are good news.

ERCOT

Texas’ national lead in cheap wind power, combined with near historically low natural gas prices, mild weather, an abundant power supply and slower growth in electricity demand, can work to the detriment of power companies.

The combination weighed down wholesale power prices last year to their lowest averages since 2002. And the effects are only becoming more dramatic in 2016, even creating bizarre instances when, in the abstract at least, providers are paying to put electricity on the market.

“It’s pretty dire,” said Michael Ferguson, associate director at Standard & Poor’s covering utilities and infrastructure. “It’s a bad situation for gas generators, but for coal generation, it’s even worse.”

Texas’ wholesale power prices averaged $26.77 per megawatt-hour last year, down nearly 35 percent from $40.64 per megawatt-hour in 2014. The cost was more than $70 as recently as 2008.

While now is a good time for consumers to lock in cheaper electricity prices, well more than 25 percent of the state’s power plants are operating at a cash loss, especially the older coal-fired plants, power executives and analysts estimated. That’s before more stringent federal emissions regulations go into effect in coming years

Until coal plants start shutting down or the state tweaks regulations to artificially inflate prices, power companies will struggle, executives said. A new Moody’s Investors Service report concluded that Texas “power prices are unlikely to climb out of their doldrums.”

Already, less than a quarter of Texas’ coal fleet is operating early this spring, as more generators simply take their coal plants offline until the summer heat brings more demand, analysts from Tudor, Pickering, Holt & Co. noted.

In March, wind added to the grid more than coal power for the first time ever for a full month. Wind contributed 21.4 percent of the grid’s overall power, compared with 12.9 percent from coal, which used to be the dominant source of the state’s electricity generation, according to the Electric Reliability Council of Texas, which manages about 90 percent of the state’s electricity load.

“Ultimately, something is going to have to give here,” said Thad Hill, president and CEO of Calpine Corp., the largest power generator in the Houston region and owner of the nation’s largest fleet of natural gas-fired power plants.

[…]

Texas is home to nearly 20 coal-fired power plants and the near future of at least six of them are considered at risk.

They will require expensive upgrades to meet federal standards, according to a recent ERCOT analysis, and the costs could outweigh the benefits of keeping them open. That’s not even counting the effects of the federal Clean Power Plan, which is pending in court.

“Ultimately, we think the market could be a lot tighter than people think, particularly if people start mothballing or retiring units,” said Hill, whose Calpine would stand to benefit because it doesn’t own any coal plants.

At-risk plants include Luminant’s Big Brown, Monticello and Martin Lake coal plants in East Texas, half of Luminant’s Sandow plant east of Austin, NRG Energy’s Limestone plant east of Waco, and Engie’s Coleto Creek plant near Victoria that’s being bought by Dynegy.

It’s fine by me if those coal plants go the way of the dodo. It’s long overdue, and their demise will make meeting the Clean Power Plan benchmarks even easier. More investment in solar energy will help mitigate the low-wind periods and ensure demand can be met in the summertime. What’s not to like?

Dealing with climate change whether you believe in it or not

Writer Taylor Hill visits West Texas to talk about drought, wind energy, and the topic that dare not speak its name, also known as climate change.

Actions, though, do speak louder than words. AzTx Cattle and other ranching and farming operations across West Texas are changing a century-old way of life to adapt to the new reality of climate change, even if, in their unwillingness to talk about global warming, they see their actions as a pragmatic response to a new business reality. So a state that once spawned oil billionaires like T. Boone Pickens now mints wind barons like, yes, T. Boone Pickens, and rock-ribbed conservative cities are ditching dirty coal for wind and solar energy. Texas may be home to some of the nation’s most vociferous climate skeptics—hello, Ted Cruz—but Texans are already fighting climate change, even if they won’t admit it. Survival, it turns out, trumps denial.

“If people are making smart choices for different reasons, that’s OK,” says Katharine Hayhoe, a climate scientist at Texas Tech University, in Lubbock, and an evangelical Christian. “What matters is not why we do it; what matters is what we’re doing.”

[…]

AzTx Cattle once operated feedlots scattered across the parched landscapes of Arizona and Texas. Bob Josserand cites the continued consolidation of the cattle feeding industry as the reason the company has closed all of its feedlots except for one in Hereford. Today, John Josserand focuses mainly on the company’s open-range cattle ranches in East Texas and New Mexico.

But even at the Hereford feedlot, things have changed.

On a walk around the 50,000-cattle lot, John reluctantly leads the way to the feedlot’s latest herd of Holstein cows—a smaller breed that requires less food and therefore less water. For a man who associates high-quality cattle with the all-black coat, perky ears, and stocky build of Angus, the Holstein, with its splotchy black-and-white hide and floppy ears, is not his favorite cow. It doesn’t produce the prized steaks associated with Black Angus or other iconic Texas cattle. If Holsteins are not used as dairy cows, they’re typically sold as low-quality ground beef—they’re kind of the catfish of the cow world.

“They’re making up a larger and larger percentage of what we’re seeing here,” John says.

For Bob, the changes in the business—from downsizing to breed changing—are a logical response to current conditions. “We’ve seen years and years of wasting water, and it’s catching up with us,” he says. “The decisions that were made 40 years ago are coming back home.”

Bruce McCarl, an agricultural economist at Texas A&M University, views the Josserands’ decision to move away from feedlots as the type of adaptation needed to cope with climate change.

“We see farmers and ranchers adapting to climate change in our studies, even if they don’t call it climate change,” he says. Some of the more obvious changes include switching to drip irrigation systems and substituting corn and other water-intensive crops for drought-tolerating grains such as sorghum.

It’s a good read, though if you’re anything like me you’ll probably find yourself grinding your teeth a few times. People can believe whatever crazy things they want about climate change, and they can vote for politicians who nurture those crazy beliefs, but when their own eyes and their own bottom lines tell them they have to adapt or die, they adapt. And the actions they take ultimately help fight against climate change, even if their words and beliefs are still obstacles.

Some power companies like the Clean Power Plan

Not that you’d ever know it.

ERCOT

Thad Hill, in a split with many fellow power company executives, flatly opposes the lawsuits that Texas and 25 others states have filed to block the Obama administration’s Clean Power Plan.

The plan, which the Environmental Protection Agency unveiled in the summer, seeks to combat climate change by reducing carbon emissions at existing power plants. It would affect coal-fired plants most profoundly, because they emit the most carbon dioxide.

It’s no coincidence that the company Hill heads, Houston’s Calpine Corp., owns exactly zero coal plants.

While it’s intuitive that wind and solar power companies, which don’t emit greenhouse gas in generating power, support the Clean Power Plan, opinion within the traditional electricity generation sector is more nuanced.

Calpine, which operates the nation’s largest fleet of natural gas-fired generators, leads a relatively small group supporting the federal rule.

Most companies that generate power with coal oppose it, including Dallas-based Luminant, the state’s largest power generator. It also operates some gas plants and one of Texas’ two nuclear plants.

[…]

While the EPA has tightened other emissions regulations under President Barack Obama, the Clean Power Plan is the most sweeping overhaul, said Travis Miller, director of utilities research at Morningstar.

The plan is intended to reduce carbon pollution from existing power plants 32 percent from their 2005 levels by 2030.

“The Clean Power Plan is going to have ripple effects throughout the entire energy system in the U.S.,” Miller said. “Utilities need a long runway to adapt, but they’re willing to adapt.”

In the lawsuit challenging the rules put forth by the Democratic Obama administration, Republican Texas Attorney General Ken Paxton calls the plan a massive power grab by the EPA that would increase Texans’ electric bills significantly and threaten the reliability of the electric grid.

The Electric Reliability Council of Texas, which manages 90 percent of the state’s power grid, has estimated the rule could force the closures of some Texas coal plants and increase electricity prices 16 percent by 2030.

Miller agreed that the Clean Power initiative would affect Texas, though he said that Midwestern, Great Plains and Appalachian states most dependent on coal would feel the greatest effects.

Some of the changes in Texas’ power landscape are occurring anyway, because of cheap shale gas and Texas’ ranking as the largest wind power producer in the nation.

“There’s an impressive pipeline of new gas generation and new wind generation in Texas,” Miller said.

That presents market challenges to coal plants, and could move the state toward compliance with the Clean Power Plan. “Texas might not have to do all that much,” Miller said.

See here for the background. Miller’s statement is consistent with what ERCOT itself has said, and the Clean Power Plan would help conserve water, too. But this is Texas, and our leadership has to do things the hard way. Just remember, they don’t speak for everyone, not even in the power generation business.

Georgetown goes all in on renewable energy

From ThinkProgress.

Located about 30 miles north of the Texas capital in a deeply conservative county, the city of Georgetown will be powered 100 percent by renewable energy within the next couple years. Georgetown’s residents and elected officials made the decision to invest in two large renewable energy projects, one solar and one wind, not because they reduced greenhouse gas emissions or sent a message about the viability of renewable energy — but because it just made sense, according to Mayor Dale Ross.

“This was a business decision and it was a no-brainer,” Ross told ThinkProgress from his office along one of the city’s main thoroughfares. “This is a long-term source of power that creates cost certainty, brings economic development, uses less water, and helps the environment.”

[…]

Ross said that a lot of “folks don’t really care what kind of electrons are flowing down the transmission lines,” they just don’t want to pay more for power. Once he explains the new setup to residents, even the most skeptical and politically conservative, they tend to come around.

“The main criticism I’ve heard about green energy is the worry that the tax credits might go away,” said Ross. “Well that doesn’t impact us because they are contractually obligated to deliver energy at that price for 25 years.”

Ross, who is a Certified Public Accountant by trade, took this idea one step further.

“And if you are really looking into that — in the tax code which industry gets the most deductions and credits of any industry out there? That would be fossil fuels. Renewable energy credits are minuscule compared to fossil fuels,” said Ross, who was elected as a Republican mayor earlier this year.

While the cost of both wind and solar power are trending downwards quickly, Georgetown was able to get such a good deal in part due to timing. According to Chris Foster, Georgetown’s Resource Planning & Integration manager and the one responsible for working through all the logistics of the city’s energy needs, wind prices were particularly low at the time the city locked in the 144-megawatt, 20-year deal with EDF Renewables in early 2014. Foster said that in late 2013 wind energy bidders were worried that tax breaks wouldn’t be renewed, and because of this they offered extremely cheap rates in exchange for a long-term contract. Foster was not allowed to disclose the exact rate.

The wind power Georgetown is getting from EDF’s farm is just a small push in the much larger rush of wind power taking place across Texas. Around 2,200 megawatts, enough to bring power to some 400,000 homes, are expected to come online in the state before 2017. According to the American Wind Energy Association, Texas leads the country in both under-construction wind capacity and installed wind capacity, of which it has over 14,000 megawatts.

Even though wind power has brought some 17,000 jobs and $26 billion in capital investment to the state, lawmakers came remarkably close to repealing key renewable energy policies in this year’s legislative session, which ended in early June. The Senate passed legislation that would have done away with the state’s renewable portfolio standard, which has already been surpassed anyways, and — more harmfully — frozen the CREZ program that is responsible for the bulk of the new transmission lines. The bill never made it out of the House. Advocates of both programs argue that they have worked, and Georgetown appears to be the model example.

“We asked everybody in the state to show us the cheapest power at the longest terms,” Foster told ThinkProgress. “We looked at nuclear, coal, gas, some solar, and wind — and wind was by far and away the cheapest form of power.”

Foster, who came to Ross’s office for the interview, said that natural gas prices were competitive but that the providers were only willing to offer five- or six-year contracts.

A year or so after signing the wind contract Georgetown went looking for additional long-term power. During this time Foster realized that solar would nicely complement the profile of wind energy, which blows most overnight. While solar power is less developed in Texas, as costs drop the potential is sky high. Texas is ranked first in solar energy potential according to the State Energy Conversation Office but only tenth in installed solar capacity. In 2014, Texas installed 129 megawatts of solar, ranking it 8th for the year nationally.

“Between 2012 and 2014 the solar market came down almost 80 percent in cost,” said Foster. “So once again we had great timing, as the solar providers wanted long-term contracts in order to help break into the Texas market.”

Great to see, and it really does make a lot of sense. They were able to get their rates locked in for a much longer time than they could have with any fossil fuel provider. I suppose they could miss out on some future savings this way, but they will definitely avoid any future price increases, which the traditional providers couldn’t promise they wouldn’t face. I hope other cities explore this kind of option as well. Link via EoW.

ERCOT acknowledges that meeting EPA clean air requirements won’t be that big a deal

From Texas Clean Air Matters:

ERCOT

Well, it didn’t take long before the Electric Reliability Council of Texas (ERCOT) released, at the request of Texas’ very political Public Utilities Commission, another report about the impacts of the Environmental Protection Agency’s (EPA’s) rules designed to protect public health.

This time ERCOT, which manages 90 percent of Texas’ electric grid, looked at the impact of seven EPA clean air safeguards on the electric grid, including the Cross State Air Pollution Rule (CSAPR), the Mercury Air Toxics Standard (MATS), the Regional Haze program (all of which go back before the Obama administration), the proposed Clean Power Plan, which would set the first-ever national limits on carbon pollution from existing power plants, and others. What was surprising to learn, though, is that after power companies in the state start complying with EPA’s other clean air protections, the proposed Clean Power Plan poses a minimal incremental impact to the power grid. We would only have to cut 200 megawatts of coal-fired generation, which equates to less than one coal-fired power plant.

For as much doom-and-gloom we heard last month in ERCOT’s report about the Clean Power Plan, they certainly seem to be singing a different tune this go-around. The new report shows that Texas can go a long way toward complying with the Clean Power Plan by meeting other clean air safeguards, for which Texas power companies have had years to prepare.

Very soon power companies in Texas will install control technologies to reduce multiple – not just one – pollutants, thereby making compliance with EPA’s subsequent regulations easier and more cost-effective. In the end, Texas will only need to take a minimal amount of additional aging coal plants offline by 2029.

Plus, other energy resources, like energy efficiency, rooftop solar, and demand response (which pays people to conserve energy when the electric grid is stressed) are gaining ground every day in Texas. They have proven to be vital resources on the power grid that help reduce electricity costs for Texas homes and businesses.

Energy efficiency, in particular, provides significant reductions in power plant emissions, including carbon dioxide, sulfur dioxide, and ozone-forming pollutants, and has a four-to-one payback on investment. This is the type of performance worth investing in.

See here for the background, and click over to read the rest. In addition to what the EDF says above, complying with the new regulations would also save a ton of water, which is a pretty big deal in and of itself. So let’s have less whining – and fewer lawsuits – and get on with the compliance. It’s a win all around.

It’s OK if energy costs go up for now

That’s my reaction to this.

ERCOT

As Texas regulators weigh a response to President Obama’s proposal to combat climate change, the operator of the state’s main electric grid says the plan would raise energy costs and threaten reliability – particularly in the next few years.

In an analysis released Monday, the Electric Reliability Council of Texas (ERCOT) said the plan — which requires states to shift from coal-power to cut carbon emissions — would significantly increase power prices in the next few years. But those extra costs would fall in the next decades as Texans reaped long-term savings from investments in solar power and energy efficiency. 

Under the federal proposal, Texas would need to slash carbon emissions from its power plants by as much as 195 billion pounds of carbon dioxide in the next 18 years, according to a Texas Tribune analysis. That 43 percent reduction is among the larger percentage of cuts required among states.

The EPA suggests that Texas could meet its goal though a combination of actions: making coal plants more efficient, switching to cleaner-burning natural gas, adding more renewable resources and bolstering energy efficiency. Texas would have until 2016 to submit a plan to meet its carbon target.

The ERCOT analysis comes as Texas regulators prepare to file formal comments to the EPA ahead of the Dec. 1 public comment deadline.

[…]

“Given what we see today, the risk of rotating outages increases,” Warren Lasher, director of system planning at ERCOT, said Monday in a media call.

The changes would hit coal-dependent communities around Dallas and Houston particularly hard, Lasher said. Those areas would quickly need new power lines to connect with new power sources. That could prove costly. For instance, officials project a major transmission project for the Houston area to total $590 million.

“All of those costs could ultimately be born by consumers in the power bills,” Lasher said.

And I’m okay with that. The costs would be borne in the short run and would likely lead to lower costs as more renewable sources came online and became part of the statewide grid. As the Rivard Report reminds us, there’s a lot of that happening already. The pollution reduction benefit from the EPA’s directive would be substantial as well. If ERCOT is trying to scare me, it’s not working. I’m sure the EPA would be willing to be flexible with Texas on the schedule if Texas negotiates in good faith and demonstrates a real commitment to meeting the stated goals. Or Texas can sue and lose and get no help in getting this implemented as smoothly as possible. Seems like a pretty easy choice to me. Texas Clean Air Matters has more.