Cheap Natural Gas Means Lower Electricity Prices Except In Texas

| Source: Forbes | Posted 04/17/2024

Why ERCOT’s Power is the Most Expensive in the U.S In 2023, Texans paid more for wholesale electricity and suffered more calls for conservation than residents served by any other grid across the nation. And there's no reason to expect that to change anytime soon.

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In 2023, Texans faced higher costs for wholesale electricity and more calls for conservation compared to other states. The state's reliance on natural gas and renewable energy, coupled with ERCOT's flawed market design, led to persistently high prices and a lack of investment in new power plants. ERCOT's failure in 2021 highlighted issues with weatherization, leading to blackouts and significant economic losses.

Efforts to address the situation, including consolidating ERCOT governance and improving weatherization, have been made since the 2021 freeze. However, challenges persist in Texas's electricity market, with issues such as cryptocurrency mining impacting supply and demand dynamics. The state continues to grapple with rising electricity costs, lack of sufficient supply capacity, and the need for substantial investments in renewable energy and transmission infrastructure to ensure grid reliability and affordability in the future.

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Source Link: https://www.forbes.com/sites/edhirs/2024/04/16/cheap-natural-gas-means-lower-electricity-prices-except-in-texas/

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Cheap Natural Gas Means Lower Electricity Prices Except In Texas

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