A heat wave in Texas is causing power shortages.
Texas's electricity regulator warned residents and businesses on Monday to reduce use or risk rolling power outages across the state as demand neared a grid tipping point as thermometers soared above 38 degrees Celsius.
The commission expects Texas to peak demand at 79,700 megawatts, just below the threshold of 80,200 megawatts, with expected demand just 0.61 per cent less than total generation, leaving the grid with very little room for manoeuvre. At 2pm local time, ERCOT changed its status from "Normal" to "Protection alert, please use less electricity".
Nearly every industrial-scale bitcoin mining company in Texas has been forced to shut down its machines due to power grid stress, US media reported. Lee Bratcher, chairman of the Texas Blockchain Association, said: "In response to ERCOT's conservative demand for electricity, there are now over 10 megabytes of bitcoin mining operations turned off. "This represents nearly all of Texas's industrial-scale bitcoin mining load and has pushed more than 1% of the grid's total capacity back into the grid for retail and commercial use."
The heat is putting the power grid at risk
About 50 million people in the US were under heat warnings or advisories over the weekend, covering parts of Arizona, Texas and Alabama, us media reported. The National Weather Service called the conditions "extreme" and "dangerously hot." Texas set more than a dozen new heat records, soaring as high as 45 degrees Celsius. The heat is expected to last until Tuesday.
The sizzling statewide weather in Texas has triggered record high demand for electricity, and the state's power grid, which has failed during past heat waves and natural disasters, may be on the verge of collapse. In most cases, if local demand exceeds capacity, energy can be borrowed from neighboring states or cities, us media reported. But Texas is an exception, having pushed for energy independence since the early 20th century by building a separate grid system that has no way to "borrow" power in times of high demand.
According to data updated in May by the U.S. Energy Information Administration (EIA), Texas leads the nation in electricity generation, generating nearly twice as much power as second-place Florida. In 2021, Texas will generate about 12 percent of the nation's net electricity.
In a separate statement, ERCOT warned that the amount of power in reserve could be dangerous if demand surges faster than forecast, and that "there is no market solution". If the grid fails, it could cause blackouts for weeks or months, according to grid operators. The committee recommended that air conditioners be turned up by at least 1 degree Fahrenheit from 2 p.m. to 8 p.m. Monday, and that major appliances should not be used.
Bitcoin companies answered the call. Companies like Riot Blockchain, Argo Blockchain and Core Scientific, which run millions of power-hungry computers and flocked to Texas in normal times due to low electricity prices and lax regulations on virtual currency mining, are now suffering.
At the same time, electricity prices are soaring. Electricity prices on the daytime market soared to more than $2,000 per megawatt hour on Monday afternoon local time, more than 20 times higher than normal, US media reported. Heavy electricity bills, amid high inflation, have forced some industrial companies to scale back operations.
When necessary, ERCOT will look for specific, large-scale customers to reduce their electricity use, according to Denton, Texas, utility officials. For example, a large food storage facility can temporarily use 50 percent of its usual power to keep temperatures low.
The wind
According to the EIA, wind power is one of the major sources of electricity in Texas. In 2021, the state accounted for about 26 percent of all wind power generated in the United States, ranking first in the country for 16 consecutive years. Wind power surpassed nuclear power generation in the state for the first time in 2014, and surpassed coal-fired power generation for the first time in 2019. Wind power accounts for 24.8 per cent of electricity generation, second only to natural gas at 51 per cent, according to ERCOT.
However, due to low wind speeds during the heat wave, ERCOT said in a statement that while solar power is generally at near full capacity, wind power is currently generating significantly less electricity than historically at this time. On Monday, less than 10 percent of wind power installations were available, further reducing available power.
Wind power also stalled in Texas during winter storms in early 2021. At the time, experts said Texas's power grid was not built to withstand extreme cold. But as the heat continues, some analysts are warning that Texas's power grid could not withstand the extreme heat.
'Our grid is better equipped to handle three months of 90-plus degrees [above 32 degrees Celsius] than a winter storm,' says Caitlin Smith, director of regulatory policy and communications at Jupiter Power, a Texas-based battery-storage company. But can we handle more than 100 degrees for four months? There is some uncertainty."
Winds in Texas often drop during the day and rise at night, especially in the summer, according to local media reports. ERCOT predicted that more wind power would be brought to the grid on Tuesday.