Americans have been focused on the nation’s energy supplies due to the winter storm that blanketed the eastern two-thirds of the country. Texas was spared the coldest temperatures as the front angled eastward.
ERCOT has managed through the coldest temperatures this morning without incident. Power reserves were more than adequate to meet demand. Power consumption (load) was extremely high, expecting to exceed 75,000 MWs this morning around 10am CST. The all-time summer peak was just over 80,000 MWs, indicating that the state now has extreme demand in both summer and winter. This winter peak is likely attributed to the electrification of many aspects of our lives such as home heating, large compressors (petroleum and industrial uses), and automobiles. This trend is likely to continue, pushing demand higher each year.
The lack of precipitation with this week’s cold front was the most significant difference between Uri’s coldest night and last night. Mobility was unimpeded, wind turbine blades were not covered in ice, and thermal generation units did not have devices covered in ice that trips off the entire unit.
Prices spiked early this morning as the reserve margin hovered around 5000 MWs. Prices above $3000 per MWh occurred for a short period of time and appeared to be falling as temperatures and the sun began to rise.
Please do not hesitate to contact HillCo Partners if you require any additional information.
