Posts Tagged ‘Texas wind’

Texas Windpower: Will Negative Pricing Blow Out the Lights? (PTC vs. reliable new capacity)

Saturday, December 1st, 2012

Source:  Master Resource  

by Josiah Neeley

“It is well known that Texas is undergoing a major challenge in maintaining resource adequacy due to improper price signals; less well known is that a significant portion of the problem can be laid directly on the doorstep of subsidies for wind generation.”

The federal Production Tax Credit (PTC), which currently provides a $0.022/kWh subsidy to qualifying renewables, is set to expire at year-end. Just the prospect of expiration has dramatically slowed new construction of industrial wind capacity, despite a raft of other subsidies to politically correct energy. [1]

The Texas Public Policy Foundation has released a new paper looking at the effect of the production tax credit both on taxpayers and consumers. Bill Peacock and I found that PTC continuance puts the Texas electricity market at increased risk of price spikes and blackout by discouraging the construction of new reliable, on-peak generating capacity. (more…)

Things More Worrisome than AGW: Heat waves pushes Texas power grid into red zone

Friday, August 5th, 2011

Source:  Reuters

The Texas power grid operator has scrambled this week to meet soaring electricity demand in the face of a brutal heat wave, and residents of the second most populous U.S. state are one power plant shut-down away from rolling blackouts.

Power demand for Electric Reliability Council of Texas, Inc, or ERCOT, which runs the power grid for most of the state, hit three consecutive records this week as Texans cranked up air conditioners to escape one of the hottest summers on record.

The grid operator on Thursday cut power to some big industrial users, and businesses and households face a repeat of the rolling blackouts they faced in February, when a bitter cold snap interrupted power supplies. (more…)

Blown in the Wind

Tuesday, August 17th, 2010

Source:  Slate Magazine

The U.S. should stop wasting billions to subsidize unreliable wind energy projects.

By Robert Bryce

They like everything big in Texas, and wind energy is no exception. Texas has more wind generation capacity than any other state, about 9,700 megawatts. (That’s nearly as much installed wind capacity as India.) Texas residential ratepayers are now paying about $4 more per month on their electric bills in order to fund some 2,300 miles of new transmission lines to carry wind-generated electricity from rural areas to the state’s urban centers.

It’s time for those customers to ask for a refund. The reason: When it gets hot in Texas and it’s darn hot in the Lone Star State in the summer the state’s ratepayers can’t count on that wind energy. On Aug. 4, at about 5 p.m., electricity demand in Texas hit a record: 63,594 megawatts. But according to the state’s grid operator, the Electric Reliability Council of Texas, the state’s wind turbines provided only about 500 megawatts of power when demand was peaking and the value of electricity was at its highest. (more…)

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