Demand on Texas' strained power grid expected to double over next six years

Data centers, hydrogen-production sites and oil and gas operators are demanding more power at the same time as the state's population is booming.

click to enlarge The top official with the Electric Reliability Council of Texas said the state's growing population and rising consumption from big power users is driving demand. - Courtesy Photo / ERCOT
Courtesy Photo / ERCOT
The top official with the Electric Reliability Council of Texas said the state's growing population and rising consumption from big power users is driving demand.

Based on current forecasts, Texas' already strained power grid will need to double the amount of electricity it provides within six years, the system's operator told state lawmakers, according to the Texas Tribune.

In comments last week to the state's Senate Business and Commerce Committee, Electric Reliability Council of Texas CEO Pablo Vegas said power-intensive businesses including data centers, hydrogen-production sites and oil and gas operators are demanding more juice, the Tribune reports. At the same time, the state is continuing to attract news residents.

“All of that is putting together a picture of a very significant, different demand growth that is forcing us to really re-think how we’re looking at planning to make sure we can meet those needs and continue to deliver on the expectations of all Texans,” Vegas told lawmakers.

Demand on the Texas grid reached a record 85 gigawatts in 2023, the state's hottest year on record. ERCOT now expects demand to explode to 150 gigawatts by 2030, according to the Tribune.

The new projections come as questions continue to swirl around the reliability of the Texas grid, which isn't connected to those serving the rest of the country. In 2021, Winter Storm Uri led to outages across the state that left millions without power and resulted in hundreds of deaths. ERCOT has continued to issue requests for consumers to reduce power during peak cold and hot periods.

Although the Texas Legislature enacted post-Uri reforms, critics argue lawmakers didn't go far enough and that the GOP-controlled state still isn't taking the threat of climate change seriously enough. U.S. Rep. Greg Casar, a Democrat who represents parts of Austin and San Antonio, filed federal legislation to force Texas to connect its grid with the rest of the nation.

While Texas Republicans have opposed the idea of interconnection, ERCOT's updated projections prompted at least one to suggest the state should prioritize its energy needs.

State Sen. Charles Schwertner, a GOP member who chairs the Senate Business and Commerce Committee, told the Tribune that ordinary Texans' energy needs should outweigh those of certain big power users. Both bitcoin mining operations and data centers, for example, have faced criticism for gobbling up large amounts of electricity while yielding few jobs.

“I think we need to rise to the challenge of getting the needed generation onto the grid,” Schwertner told the news site. “But there is eventually a prioritization that could be discussed, and obviously Texans — their families, their homes, their businesses — are the most important individuals, the most important clients for electricity.”

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Sanford Nowlin

Sanford Nowlin is editor-in-chief of the San Antonio Current.

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