Texas power prices signal grid stress in another long, hot summer

Naureen S. Malik | Source: Yahoo | Posted 04/29/2024

(Bloomberg) — A surge in Texas power prices for August suggests another summer of heavy electricity demand — and potential grid strain — to meet air-conditioning needs.

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A surge in Texas power prices for August indicates potentially high electricity demand and grid strain due to air-conditioning needs. Traders are closely monitoring prices months in advance to assess demand outlook, with prices reaching five-year highs for this time of year at $168.70 a megawatt-hour for Dallas.

The state's grid operator warned of possible deficient power reserves from April 29 to May 1, highlighting concerns about the state's aging infrastructure and reliance on renewable energy. With frequent electricity supply issues in recent years, there's a growing worry about scarcity as solar power decreases at dusk, requiring rapid ramp-up from natural gas-fired plants and batteries to maintain power flow.

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Texas power prices signal grid stress in another long, hot summer

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