Demand from large consumers could strain Texas' power grid, ERCOT boss says

Anna Harden | Source: Group For News | Posted 04/25/2024

AUSTIN — A growing number of industrial users could strain Texas' power grid and set the stage for a massive expansion of transmission lines across the state, the head of ERCOT announced Tuesday. Large electricity consumers in the Permian Basin and an influx of artificial intelligence data centers and Bitcoin miners have led ERCOT to forecast a 37% increase in electricity demand from industrial users. This comes on top of a 2023 forecast that already predicted huge new demand by the end of the decade.

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ERCOT projects a significant rise in industrial electricity demand in Texas, particularly in the Permian Basin, due to the influx of data centers, Bitcoin miners, and oil and gas operations. This surge necessitates an overhaul in power grid planning to accommodate the projected 37% increase in demand from industrial users.

The proposed expansion of transmission lines across the state aims to address the anticipated power demand, as ERCOT forecasts a rise in new large-scale electricity demand from potential projects. While the cost of building new transmission infrastructure will be passed on to consumers, concerns persist regarding the timeline and efficiency of developing these essential power transmission facilities.

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Demand from large consumers could strain Texas' power grid, ERCOT boss says

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