Documents filed under Energy Policy from Texas
Following severe energy shortages in Texas this winter, Texas Governor Abbott drafted this July 6th letter to the PUCT (Public Commission of Texas) calling for immediate action to improve the reliability of the state's electric system. Emphasis in Abbott's letter was on incentivizing new and existing generation for reliability purposes (natural gas, coal, and nuclear) and requiring intermittent resources including wind and solar to pay the price when they fail to deliver. The full three-member PUCT was recently appointed by the Governor. Details about the letter and the actual content of the letter can be accessed from this page.
ArcVera Renewables evaluated the financial losses associated with rolloing blackouts in Texas during the cold spell in mid-February 2021. The summary report and full report prepared by ArcVera Renewables can be downloaded from the document links on this page.
Texas Public Policy Foundation released the paper “Texas Wind Power Story: Part 1 – How Subsidies Drive Texas Wind Power Development,” which shows that the growth of the wind industry in Texas is spurred by, and only viable because of subsidies such as the production tax credit, along with tax breaks at the state and local level. A summary of the paper is provided below. The full paper can be downloaded from the links on this page.
This important report by the Texas Comptroller examines the importance of reliable, low-cost energy for the State of Texas. A portion of the report is provided below. The full report can be accessed by clicking the links on this page.
Texas PUC chairwoman, Donna Nelson, has initiated an investigation into "the costs of [transmission] system upgrades, the costs to maintain and operate the current system, and the allocation of those costs specifically related to renewable resources." In her memo below (and attached). Chairwoman Nelson warns of the costs, particularly of the wind PTC is extended by Congress.
Many jurisdictions worldwide are greatly increasing the amount of wind production, with the expectation that increasing renewables will cost-effectively reduce greenhouse emissions. This paper discusses the interaction of increasing wind, transmission constraints, renewable credits, wind and demand correlation, intermittency, carbon prices, and electricity market prices using the particular example of the Electric Reliability Council of Texas (ERCOT) market. The complete paper can be accessed at the links provided below.
Policy analyst and attorney, Drew Thornley, of the Texas Public Policy Foundation examines the growth of wind energy in Texas over the last decade. While many policymakers and business leaders foresee wind as a major contributor to America’s electricity supply, his report identifies several practical obstacles that stand in the way of achieving that vision.
This working paper is made available by the Resource and Environmental economics and Policy Analysis (REPA) Research Group at the University of Victoria. REPA working papers have not been peer reviewed and contain preliminary research findings. They shall not be cited without the expressed written consent of the author(s). Editor's Note: The authors’ conclusion regarding ‘effective capacity’, i.e. the measure of a generator’s contribution to system reliability that is tied to meeting peak loads, is that it “is difficult to generalize, as it is a highly site-specific quantity determined by the correlation between wind resource and load” and that ‘values range from 26 % to 0% of rated capacity.” This conclusion is based, in part, on a 2003 study by the California Energy Commission that estimated that three wind farm aggregates- Altamont, San Gorgonio and Tehachpi, which collectively represent 75% of California’s deployed wind capacity- had relative capacity credits of 26.0%, 23.9% and 22.0% respectively. It is noteworthy that during California’s Summer ’06 energy crunch, as has been widely publicized in the press, wind power produced at 254.6 MW (10.2% of wind’s rated capacity of 2,500MW) at the time of peak demand (on July 24th) and over the preceding seven days (July 17-23) produced at 89.4 to 113.0 MW, averaging only 99.1 MW at the time of peak demand or just 4% of rated capacity.
This 'informal white paper' authored by the renewable energy industry and the Electric Reliability Council of Texas addresses the impact of wind's intermittency on the need for the development of comparable capacities of reliable sources that can be called upon when the wind is not blowing. It contains a particularly interesting chart that characterizes different energy sources as 'base load', 'peak load' and 'intermittent' with their associated benefits and drawbacks. Wind is deemed 'intermittent' with the following benefits (no emissions, no fuel costs, stable cost, low operating cost) and drawbacks (not dispatchable, not responsive, transmission needs, low peak value).