By: Franyi Sarmiento, Ph.D., Inspenet, October 11, 2022
In the Short-Term Energy Outlook Supplement, the US Energy Information Administration (EIA) analyzed how variability in electricity demand and wind generation affects hourly electricity prices in the Texas wholesale energy market in peak summer day conditions, when summer electricity demand is highest.
The Electric Reliability Council of Texas (ERCOT), which manages the wholesale energy market in Texas, has seen significant peak load growth in recent years (16% between 2011 and 2022) and significantly increased its wind generation (from 9% of electricity in 2011 to 24% in 2021).
EIA finds that both high levels of electricity demand and low wind availability can significantly increase wholesale prices at ERCOT, supported by its market design. When combined, these factors can lead to especially high price increases during the summer days.
This material from the elperiodicodelaenergia.com portal was edited for clarity, style and length.
Photo: ShutterStock
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