Texas is experiencing growing electricity needs

• Texas set an unofficial record for electricity consumption on Tuesday, driven by increased demand for air conditioning during the August heatwave.
• ERCOT, the state’s grid operator, has not issued calls for energy conservation this year despite record demand.
• The grid operator anticipates that electricity demand in Texas could double in six years due to population growth and increased demand from data centers.

Texas used a record amount of electricity on Tuesday, the Electric Reliability Council reported, noting that the data was not yet official after meter readings were calculated.

Bloomberg said in a report on news that the record was driven by higher demand for air conditioning amid August temperatures. The publication also noted that this year’s summer in Texas is still colder than the summer of 2023, when electricity demand broke the record 21 times.

Earlier in the year, ERCOT estimated that electricity demand in the Lone Star State could double in six years, requiring the urgent addition of more generating capacity. According to a report in the Texas Tribune, the forecast was based on expectations of higher demand from data center operators and the state’s continued population growth.

“All of this paints a picture of very significant and different demand growth that is forcing us to really rethink the way we think about planning to make sure we can meet those needs and continue to meet everyone’s expectations. Texans,” ERCOT President Pablo Vegas told state lawmakers in June.

The good news in this situation is that this year ERCOT appears to have been much better prepared to deal with occasional spikes in electricity demand. Houston Chronicle reported this week that despite expectations of record demand, ERCOT did not issue a call for energy conservation. “We expect to have an adequate supply to meet the demand today,” the ERCOT president said on Tuesday.

“Over the past year, we’re seeing significant additions of energy storage resources, solar resources and wind resources, with some additions on the gas side as well. All this contributed to the reduction of deficit conditions during peak summer periods”, the executive director also said.

By Charles Kennedy for Oilprice.com

More top reads from Oilprice.com