ERCOT peakload records, Texas wind output may fall July 8-12; gas burn may fill in

AI generated summary

The Electric Reliability Council of Texas (ERCOT) has projected record peakloads from July 8-12 due to a persistent heat wave, with temperatures expected to reach triple digits across much of the state. As wind output declines, the demand for natural gas-fired generation is likely to increase, leading to higher wholesale power prices. ERCOT forecasts peak loads to reach between 77.8 GW and 81.3 GW during this period, with significant heat advisories issued for most of Texas.

As temperatures rise, ERCOT anticipates a substantial drop in wind generation, which could lead to a surge in gas-fired power demand, pushing regional spot gas prices higher. Preliminary data indicates that spot gas prices have already increased, with the Houston Ship Channel and Katy Hub seeing notable gains. However, the ongoing outage at Freeport LNG may mitigate some of the upward pressure on gas prices by injecting additional supply into the market.