Texas electricity demand set to hit record high during heat wave, grid operator says By Reuters

By Scott DiSavino

(Reuters) – Texas’ power grid operator expects electricity consumption to hit an all-time demand record on Tuesday as homes and businesses turn on air conditioners to escape a lingering heat wave on the territory of the state.

Texas’ soaring population growth in recent years and its status as a hot spot for some of the biggest energy-consuming industries, including data centers and cryptocurrency mining, have ramped up energy use in the state and increased stress on its vulnerable power grid .

After surpassing peak demand records several times in April and May, peak power demand in Texas is expected to rise to 85,989 megawatts (MW) on Tuesday, which would exceed the grid’s historic peak of 85,508 MW set on August 10, 2023. according to the Electric Reliability Council of Texas (ERCOT).

ERCOT, which operates most of the grid for 27 million customers, said it expected demand to drop to 85,921 MW on Wednesday.

The grid operator also said the power grid is operating normally, with sufficient supply available to meet expected demand.

One megawatt can power 800 homes on a normal day, but no fewer than 250 on a hot Texas summer day, when homes and businesses turn on air conditioners.

Temperatures in Houston, the state’s largest city, are expected to reach 103 degrees Fahrenheit (39 degrees Celsius) on Tuesday before dropping to 100 F (38 C) on Wednesday, according to AccuWeather forecasters.

This compares to a normal high of 95 F (35 C) for this time of year.

Day-ahead power prices at the ERCOT North Hub, which includes Dallas, rose about 157 percent to a two-week high of about $102 per megawatt hour for Tuesday, according to LSEG price data.

This compares to an average of $57 per MWh so far in August and $33 this year, $80 in 2023 and $66 over the past five years (2018-2022).

Real-time prices in ERCOT rose to nearly $1,600 per MWh in a 15-minute span around 6:00 p.m. local time Monday, according to the grid operator’s website.

So far on Tuesday, real-time prices have only hit a high of $32 per MWh in a 15-minute span.