NBC 5 obtained further insights into the state’s largest power grid’s preparations for the upcoming hot Texas summers.
Leaders from ERCOT and the Public Utility Commission briefed lawmakers in Austin on Wednesday morning following the release of a significant new report by the grid operator.
It has been well-established that ERCOT, Texas’ primary power grid, faces its greatest vulnerabilities during hot late-summer nights as solar energy generation diminishes after sunset. The situation worsens if wind speeds decrease, affecting wind power generation as well.
According to the latest report presented to lawmakers, ERCOT anticipates more than a 16 percent probability of needing emergency measures, such as urging energy conservation, on each August night around 9 p.m. There is also a 12 percent likelihood of rolling blackouts affecting parts of the state.
“We are piecing together a puzzle to illuminate how this market can operate over the next five, ten, to fifteen years,” remarked Pablo Vegas, CEO of ERCOT, during his testimony to the Senate Business and Commerce Committee.
Vegas and Thomas Gleeson from the Public Utility Commission emphasized ongoing efforts to overhaul the grid’s operations. They projected a need to nearly double the capacity of power managed over the next six to ten years.
“We have the components before us to shape the market for the next twenty years, and I’m confident that with the tools and market experience, we will achieve the right outcome,” Vegas added.
Key drivers of this increased demand include new AI data centers, cryptocurrency mining operations, and oil facilities in the Permian Basin transitioning to electric power, alongside general population and business growth across Texas.
The report highlighted the upcoming years as particularly vulnerable until state-run incentive programs, like the Texas Energy Fund, bring new power plants online.
In response, state utility leaders emphasized their vigilance over rising costs. Gleeson pointed out a shift towards prioritizing grid resiliency following the deadly winter storm Uri, underscoring the importance of cost considerations moving forward.
The report did affirm that the grid currently boasts sufficient power capacity if weather conditions this summer remain “normal.”
“Meeting this growth will be challenging, but I believe the Texas market is prepared for it,” commented Walt Baum, CEO of Powering Texans, a new industry group representing power generators.
Baum cautioned that the rapid pace at which data centers and Bitcoin operations can be established poses a significant challenge compared to the longer timeline required for building new power plants. He viewed the Texas Energy Fund as a positive step forward but stressed the ongoing need for sustained efforts to keep pace with demand.
Following the update from ERCOT, Lt. Governor Dan Patrick called for closer scrutiny of emerging industries, particularly AI data centers and cryptocurrency mining operations, in the upcoming legislative session. He expressed concerns about their energy consumption relative to job creation.
“We welcome data centers, but we must ensure responsible growth without jeopardizing grid stability and public utilities,” Patrick asserted.
