Wholesale electricity prices in parts of Texas skyrocketed 10,000% on Tuesday due to an extremely unfortunate set of circumstances.
Firstly, about a quarter of the state’s power plants are undergoing maintenance (both planned and forced after the February frosts).
Second, the expected warming did not lead to a drop in electricity consumption, as cold weather lingered in one part of Texas, where major cities, including San Antonio and Houston, are located.
And thirdly, Ercot incorrectly predicted the amount of electricity generated by solar and wind power plants. Thus, the demand for electricity in the state, contrary to forecasts, remained high, while the supply decreased.
As a result of these events, Ercot urged Texas residents to use electricity very economically.
As of 17:30 Tuesday, Texas (1:30 Wednesday Moscow time – approx. ProFinance.ru), the price of electricity at the Northern Hub soared by about 10,000% to $ 2012 per megawatt-hour (152 rubles per kilowatt-hour at the dollar exchange rate against the ruble at 75.50), writes Bloomberg, citing data from Genscape. Four hours later, prices dropped to $ 222 per megawatt-hour.
In February, electricity prices in Texas hit the $ 9,000 per megawatt-hour limit amid an energy collapse caused by severe frosts. Following these events, Ercot lowered the maximum permissible wholesale price of electricity to $ 2,000 per megawatt-hour.