Utility Dive reports that the Electric Reliability Council of Texas (ERCOT), grid operator for most of Texas expects to break peak demand records this summer. Though sufficient generation will be on hand, demand response and distributed generation will still play a key role on the hottest days, particularly following the retirement of older, and mostly coal-fired, generation.
Without a capacity market, some generators rely on critical peak pricing spikes to cover their costs. An unexpected spike in January demand, for instance, sent prices above $2,200/MWh for a brief period. The Public Utilities Commission of Texas (PUCT) noted that the coal retirements dented “excess” electricity supply. The PUCT said that with the supply-demand balance this summer tighter than in the recent past, demand reduction man also play a role in tackling demand this summer.
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