This is not a super fact but just interesting information about ERCOT. ERCOT or the Electric Reliability Council of Texas is the organization that manages the state’s electricity grid, ensuring reliability and it operates the competitive wholesale electricity market for 90% of Texas’s electric load <<Link-1>>. There are a few things that are important to remember about ERCOT.
- The ERCOT grid is located solely within the state of Texas and is not interconnected to the rest of the United States. In addition to Texans being independent, this is a way of avoiding federal regulation. ERCOT is regulated by the Texas Public Utility Commission while the rest of the country is regulated by the Federal Energy Regulatory Commission (FERC).
- ERCOT is an ISO (independent system operator), meaning it’s a non-profit organization that manages the electricity grid independently of any single utility company.
- When companies sell their energy (to ERCOT) it works like a continuous auction. The one with the lowest price is picked first and allowed to contribute with whatever they are able to and also, of course, considering what the grid-powerlines can carry safely.
Renewables are successful in Texas
One thing that surprises many people is that renewable energy, for example, wind and solar, is quite successful in Texas. Fossil fuels is important in Texas, and there are many powerful oil and gas billionaires in Texas who fight the expansion of renewables. Texas politicians work hard to create laws that punish renewables with discriminatory permitting requirements.
For example, a recent bill in the Texas Senate SB819 adds a lot of requirements on renewables and battery storage that does not apply to fossil fuel-based energy sources. An example is the requirement in SB819 that wind turbines must be at least half a mile away from the property line of any neighboring property whilst, for example, oil rigs can be built up to the property line. There are a lot more regulations in SB819 that are discriminatory, contrary to free market principes, and even violations of private property rights.
Despite all the obstacles set up against renewable energy in Texas renewable energy is on the march in Texas. The reason is that ERCOT is ultimately a price competitive free market-based system and renewables are cheap. Solar and wind are the cheapest even considering subsidies and the cost of construction, land rent, disposal, and other costs not directly caused by electricity generation are taken into consideration disposal. Click here for details. The graph below shows the evolution of different energy sources in Texas. The graph is taken from this link provided by Dr. Joshua Rhodes, a research scientist at UT Austin.
You can read more about the evolution of renewable energy in Texas by clicking here.
Watching the ERCOT Fuel Mix in Real Time
Finally, what I think is the most interesting portion of this post, the real-time ERCOT Fuel Mix. It includes a couple of energy sources not mentioned earlier in this post, hydro and power storage.
Hydro is very small in Texas and power storage is a new item that is not a true energy source but a feature that can be called upon when energy is suddenly needed somewhere. It is still not widely used but it reached 10% of the mix at one point in 2024. It is likely an energy source that will keep growing as it is instant and scalable. It is the most dispatchable energy source of all. I can add that there is a lot of misinformation spread about renewable energy, especially about wind power. To read more about that click here.
Last evening and today I took several screen shots of the real time ERCOT fuel mix (see below). A couple of things to note are that solar does not contribute at night and wind contributes more at night. It was a very cloudy and rainy day today so solar contributed less than normal during daytime, but not a lot less. It is not much less than the typical sunny day of 20%. It is true that wind and solar are intermittent, but it does not matter a whole lot because wind contributes more at night when solar does not contribute and battery storage, the most dispatchable energy source of all, is growing in importance.
Click here to watch the real-time ERCOT Fuel Mix minute by minute anytime you like. (highly recommended).
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