The latest report on the electricity generation mix in Texas reveals a decline in wind power generation amidst an increased use of electricity across most of the state. The Electric Reliability Council of Texas (ERCOT), which manages the grid for approximately 90% of Texas, indicates that wind generation has decreased by over 7% for the first three months of this year compared to the same period last year.
ERCOT is responsible for managing the electric grid for about 26 million customers in Texas. It operates under the governance of a board of directors and is subject to oversight by both the Public Utility Commission of Texas and the Texas Legislature.
This decrease in wind generation occurs as Texans consume more electricity. The total use of electricity has surged by 7.2% over the first three months of 2024. To compensate for this loss in wind power, Texas has had to rely more heavily on traditional fossil fuels such as natural gas and coal to generate sufficient electricity to meet demand.
As a result, ERCOT has reported that the Texas grid is being strained due to declining wind generation. Earlier this month, ERCOT requested natural gas and other traditional generators to postpone maintenance activities to ensure that there was enough electricity supply to meet demand as temperatures began to rise slightly. According to Reuters, ERCOT stated that these delays were designed "to help alleviate potential tight conditions through the evening."
According to some, the issue arises from a rapid increase in renewable energy generation over recent years, which is crowding out dispatchable sources such as coal and nuclear power. Over a five-year period from 2018 to 2023, generation from coal-fired plants has dropped by 34%, nuclear generation is down by 1%, while natural gas generation has only increased by 17%. In contrast, wind power generation has surged by 55% and solar power generation has risen by 900%.
Bill Peacock, Policy Director at Energy Alliance, attributes the root of the problem to renewable energy subsidies. He states, "since 2011, subsidies for renewables in Texas have totaled more than $27 billion." Peacock further explains that "natural gas and coal generators simply can't compete with the subsidies for renewables. As a result, they have stopped investing and almost all new generation growth in Texas is coming from renewables."
