Texas Power Prices Briefly Surpass $9k Amid Scorching Heat
bloomberg.com
bloomberg.com
Of course alternating between extremely high and negative prices due to the volatility in supply and demand should create plenty of opportunity for businesses that make money simply storing energy and evening out the fluctuation.
[0] https://reneweconomy.com.au/wind-solar-push-south-australia-...
A cloud-less summer day in Texas offers the same potential solar energy no matter the temperature. And as you go higher latitudes, temperature drops far faster than irradiance. Which is why solar power in southern states is only moderately more productive than in New England or, for example, Germany.
I'm not saying they will stop working but merely they lose out in some potential.
Storing energy is expensive.
For the curious, you can browse the demand curves day-by-day here: https://www.eia.gov/realtime_grid/#/summary/demand?end=20190...
So while the US Western grid can time shift one hour in the way you describe, Texas is isolated.
https://en.wikipedia.org/wiki/Texas_Interconnection
https://www.texastribune.org/2011/02/08/texplainer-why-does-...
There is some support for expanding the capacity of the asynchronous DC interconnects, though, which would let Texas import & export more electricity to the other two grids without tying itself to them directly. It already does a modest amount of that, but the current DC links don't have very high capacity.
[1] https://en.wikipedia.org/wiki/Northeast_blackout_of_2003
[2] https://www.nwcouncil.org/reports/columbia-river-history/bla...
[3] https://www.vox.com/2014/4/14/5604992/us-power-grid-vulnerab...
IMO, that’s a big part of the reason why backup generators are so very popular here in Texas.
Certainly, that’s the reason I have seriously considered installing a 10-15KW natural gas powered backup generator. It wouldn’t be grid-tied or even grid-interactive in any way, but it wouldn’t take me long to go downstairs and throw the transfer switch.
Nevertheless, Texas seems to be an ideal location for both wind and solar energy (and ironically, oil and gas too).
https://i.redd.it/zug13sa7e1521.jpg
But lags in solar.
Sunset in El Paso is at 7:51 today (mountain time). Sunset in Longview is 8:05 (central time).
El Paso also has more reliable sunshine than Austin and Dallas and Houston.
There also should be a huge amount of opportunity for demand side behaviour. For instance someone coming home at 6 could precool their house at 3 and save money, we just need to make that easier for consumers.
Thicker, solid walls with more thermal mass that soak up the overnight cool to release throughout the day. Better insulation and air sealing. Trees, roof overhangs, and shade cladding to prevent direct sunlight from hitting the house.
"Just add a bigger AC" has been the approach for far too long, and it's not sustainable.
Running AC in the dark night to cool that thermal mass will benefit during the day. Using some energy, but substantially less and at non-peak times.
https://en.wikipedia.org/wiki/Climate_of_Houston indicates 81 is above the average... and again, thick walls aren't the only available approach. Any approach will involve a collection of different tweaks.
https://enwavechicago.com/how-district-cooling-works/system-...
I don’t know why more people don’t install them here in Texas.
My house only heats up about two degrees per hour with the ac off. In theory I could precool by ten degrees and coast until the evening.
Also keep in mind large buildings will resist temperature changes even better than houses due to their size. Less surface area per volume.
> humid Texas summer
This is probably the warped idea of "humid" I got from growing up in South Florida, but Dallas was rarely ever humid.
It also doesn't have the constant sea breezes and incidental rain that most of Florida enjoys.
There's a pre-cool from 1-2 where they drop the temp, and if I leave it alone for the entire four hours, I get $5 off my power bill that month.
The newly released Tesla Megapack https://www.tesla.com/megapack seems like a slam dunk for this sort of thing. You store that crazy amount of sunshine that is excess in batteries and use them that evening or the following morning. The economics of this approach are becoming more and more realistic due to better technology and better manufacturing.
They could use batteries and air conditioning to do so, but it's likely the return on investment would be higher figuring out how to provide more shade even in non residential areas.
Edit: Looks like LA is doing something like that https://www.mnn.com/earth-matters/climate-weather/blogs/how-...
[1] http://www.bom.gov.au/uv/faq.shtml
[2] https://www.huffingtonpost.com.au/2016/06/30/australia-never...
It would require DC/AC convertors, so there is a slight energy loss, and fairly significant upfront capital cost.
Is this really such a huge hurdle in itself? I'm curious, not trying to be dismissive.
What do you mean by it's Texas?
A few percentage points lower in total mWh produced but more profit.
These things take time to sort themselves out. E.g. right now Texas is flaring a lot of natural gas (which they get as a byproduct of oil production).
Looked at dispassionately it seems insane.
https://oilprice.com/Energy/Natural-Gas/Gas-Flaring-Running-...
We only had 3% capacity left in the system, yet out in the Permian Basin operators are flaring off excess gas because they have no access to pipelines or choose not to pay for it. *1
Until the Texas Railroad Commission stops allowing flaring permits and forces operators to connect the energy of all that gas is wasted, which is a damn shame.
We could definitely use that gas (after processing) to run peakers until better storage comes online. But how do you sell the idea of investment to flatten energy prices in an unregulated market?
(1) https://oilprice.com/Energy/Natural-Gas/Gas-Flaring-Running-...
That has nothing to do with the problem (except extremely indirectly via global warming). There isn’t a shortage of fuels — there’s a shortage of generation capacity. No amount of extra natural gas would make the slightest difference.
Or an excess of demand, there are plenty of ways to build houses that lower the need for air conditioning.
Not really that indirectly, if there weren't scorching temperatures there wouldn't be a need for extra air con. I'm aware though we can't definitively attribute this heat wave to global warming.
The problem here is that the grid more or less guarantees that each customer can draw as much power as they want whenever they want, so there needs to be generation capacity to cover the maximum demand, but that means that, under normal conditions, a good fraction of the capacity is unused. A plant that only runs for a few hours a year needs to charge a lot for those few hours.
In theory, demand response can help — the grid can pay certain customers to stop using power at times. Aluminum refineries are the classic example — an aluminum refinery can, in principle, be configured to turn off on demand without much loss other than the production at that time period. So an aluminum refinery that shuts off for eight hours a year generates nearly as much revenue as a refinery that operates continuously, but those eight hours can help the grid during peak load. Actually making this work requires some fancy communication with the grid operator, and this is rather new.
The difference is that you don't have the option to reduce your consumption today to save money.
If large numbers of the population were signed up to a market rate service, it would go a long way towards preventing these spikes, and will probably be necessary as we shift to a higher renewable share making the pricing far less stable.
are you saying that in Texas you pay a fix charge for electricity regardless of usage?
Assuming that this is not the case, it seems to me that should he/she take the same actions as said friend there would be a reduction to the bill too, just a lot less significant, due to the price being a lot less
When you sign up for a fixed rate, it's baked in to the price that you will fire up your AC if you feel like it even when the grid is at capacity and power is extremely expensive.
Paying market rate doesn't mean you are blocked from firing up the AC. It might cost you $100 during a heat wave, but you've paid your power company $100 less throughout the year because you haven't been paying in instalments for your peak consumption days.
Being able to say fuck it, I'd rather be uncomfortable and save $100 is empowerment, not a burden.
In aggregate, those that make this decision would provide a lot of economic benefit. The peak is reduced and whole power plants can be decommissioned.
Also you can decide to hang out at the mall until prices go down.
For every 60K people that spent 12 hours sheltered in the subway, 80 human-years of life was consumed.
I hear you about possibly saving money the rest of the time. It's worth considering if I can get the data. I can tell you today my use is so low in the winter I've had the power company come out and disassemble my meter because they thought it was hacked. The shoulder months around summer is when I could save the most. It's just whether that savings outpaces peak prices and frankly whether I want to take that risk since IMHO this kind of thing is only going to get worse.
If it would decrease the price, then operators could have and would have already increased their profits by building the pipelines to deliver the gas to generating plants.
"building": building collectively and with the help of the financial industry.
You seem to believe that the oil industry consists of vicious subhumans or something that need to be forced to do the right thing even when the right thing co-incides with their economic self-interest.
It is a tough sell to have one’s property confiscated by the government on behalf of a for-profit entity, especially if lacking funds for legal counsel.
The problem is that you have a bunch of people who are militantly against anything fossil fuel because it's part of their political identity who get their politicians to block any fossil fuel utility project.
Sure, fossil fuels aren't good in the long term but only an idiot would deny that having more natgas available cheaply resulting in less power being generated by and fewer people heating their house with oil is a significant improvement over the status quo.
He can't really say no because of eminent domain, but he has a lawyer and is fighting for a fair contract (pay for everything they break/destroy etc when building it). Most people are SOL.
Their economic short term interest, yes. Gas burned off wastefully is not available in the future and we have this small global warming problem.
And as I mentioned in the linked article now folks are flaring because it's cheaper than connection even if there's one available. From their perspective breaking contacts back then and flaring off now are just good business, so yes I 100% believe they'll do what's in their own economic self-interest.
If you happen to believe in global warming, then whether flaring that gas is in their own long term self interest is a separate conversation.
The only reason Texas isn't producing nearly 100% of its power from renewable sources today is because the oil and gas industry has been coddled and protected and catered to by the state government for decades, at the expense of everyone who isn't employed by the oil and gas industry (which, admittedly, is a lot of people in Texas).
And whatever happened to the free market? If an investor wants to plop down a solar collector farm somewhere in Texas' vast lands, what's stopping him? The government?
Access to the wholesale electricity market is another.
No. He keeps chewing on brisket until someone else forces the issue.
Some are:
- https://www.chevron.com/technology/technology-ventures
- https://www.shell.com/energy-and-innovation/new-energies/she...
Admittedly, that's not a ton. What's really stopping it is that the family offices etc. don't want to invest in any thing but oil. It's a safe bet, they know it, and tech has given it very high odds of a return compared to what it used to be.
Some investors are doing just that (all though more with wind), just not a ton. Oil prices are down quite a bit off their last high, so expect to see less of this. Every thing in this equation is relative to oil.
In Texas? With regard to fossil fuels? Oil owns the government in Texas, and the market is regulated to suit them.
Now, if there was only a way to collect much of that and turn it into usable electric power.....
Building solar power generation is now competitive or cheaper than fossil fuel even with the low efficiency of panels. So...yeah, it'd be fantastic if solar panels continue to improve over the next few decades, but we can't afford to wait for that to happen to deploy them on a wide scale. And, hell, they last 25+ years. They more than pay for themselves, even at a low efficiency.
It would be interesting to see a source on that, since there still seems to be investment in window and solar. But yeah we need storage to soak up that excess (whatever it is) when it exceeds use.
until better storage comes online.
Texas is one of the largest producers of renewable energy in the world thanks mostly to wind production, but it was not blessed with any great natural options for storing energy. Really though, this just means we need to keep working until we develop an artificial one!
Oil and Gas already has infrastructure, and solves literally every one of those other issue due to the fact it can ramp up quickly if necessary.
If renewable advocates actually cared about something besides being anti-oil, they would see that the best renewable strategy is something to the effect of 70-80% nuclear, and 20-30% wind/solar/hydro with efficient storage options.
And finally, here is a Practical Engineering video that says the same thing but with data to prove it. https://www.youtube.com/watch?v=h5cm7HOAqZY
There are few options that are both these things. Which is not an argument to not fund R&D to reach that point, simply that as of right now, precious few things have both these properties. And once you add in the requirement to be able to sustain the power grid, I'm not sure you have any options.
That said, arguing that Big Oil has a strangle hold on politics, while not wrong, is misleading. This simple fact of the matter is that it is the least of many evils right now. Its like salt. Very useful for meat preservation, and the best they had for millennia, though not up to par with modern preservatives. Some day we will have something that is a legitimate contender, and at that point we can go after Big Oil for its influence. But until we have a legitimate contender, taking out Big Oil will only cause problems.
The only reason coal/natural gas aren't prohibitively expensive is that the infrastructure already exists. If the deck hadn't been stacked against solar and wind all this time, and if externalized costs started being reflected back on fossil fuel extraction decades ago instead of incentivizing more extraction, we wouldn't be in this mess. We would already have a healthy balance of solar and wind power generation, and the cost of converting some coal-fired plants to natural gas a few years ago (which was cause and effect of more fracking in west Texas, Oklahoma, and elsewhere) could have been redirected toward clean solutions. If our governments at all levels weren't owned by fossil fuels, we would have built our last fossil fuel power plant a decade or two ago. Germany made the decision a couple of decades ago, and they've got more Seattle weather than Texas weather...where were we? We were subsidizing cleanup for BP and Exxon spills and pretending like there were no other options.
Not all of the flaring is in remote areas, either: https://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-4...
Plastic waste is also an issue (not sure if straws are really the biggest issue there), but it shouldn't be hard to tackle both.
Of note: Gas requires a pipeline. Take a look at some recent well-meaning protests around pipelines; they've likely had the opposite of the desired effect.
Compromise would be way better than "my way or the highway" extremist positions.
"Son, this is where your ancestors were buried, but we're not quite sure what happened to their remains after the oil company scraped the top few feet of soil in the 2026 oil spill cleanup and 'remediated' with clean soil imported from somewhere else."
Obviously it'd be best if we didn't use any hydrocarbons for burning, but the alternatives to pipelines in the current economy are:
* Flare the gas off, instant C02
* Train crashes
* Increase well head pressures creating an explosion hazard (and if it blows, you now have a oil well fire)
* Put it through older pipelines engineered to safety standards of the 1950s
If not what is the timescale to pay itself back?
Would the following alternative work? :
The well delivers barrels filled with oil to the connected world, and thus needs a constant supply of empty oil barrels. Why not fill them with liquid nitrogen (generated at large "economy of scale" liquefaction units at the connected world) and use this to liquefy the gas at the remote well?
https://nubluenergy.com/lng-facility-implementation/
Re: your liquid nitrogen idea; "that's not how physics works." Even if you could store liquid nitrogen in oil barrels (you can't) ... how does that help you?
Edit: it's not surprising that LNG liquefaction plants cost on the order of say billions of dollars: by economy of scale one is driven to build extremely large plants. This does not mean smaller (but less efficient) liquefaction plants at much lower costs are impossible, but it does mean those smaller plants don't reach the same efficiency as the bigger ones... (my refrigerator is condensing and freezing water from air...)
It's not like people haven't thought of these things before. Thermodynamics is well understood.
I am not proposing to bubble raw natural gas through liquid nitrogen.
>It's not like people haven't thought of these things before. Thermodynamics is well understood.
I don't claim to be the first to come up with the idea of using liquid nitrogen to liquefy raw natural gas. I am entirely open to the idea that using liquid nitrogen to liquefy RNG is somehow uneconomical or infeasible. I was hoping to get a more constructive reply: not references of how expensive or hard a smaller scale liquefaction plant is, but rather papers detailing why specifically using a heat exchanger with liquid nitrogen is infeasible, if as you say "It's not like people haven't thought of these things before."
What is raw natural gas? Predominantly methane, and some slightly longer alkanes, with impurities (H2S, CO2, N2, He,...) see [1].
What are the atmospheric boiling points of the alkanes? see [2]:
alkane, boiling point:
methane -183 °C
ethane -183 °C
propane -190 °C
butane -138 °C
pentane -130 °C
hexane -95 °C
heptane -91 °C
octane -57 °C
nonane -51 °C
decane -30 °C
undecane -25 °C
dodecane -10 °C
eicosane 37 °C
triacontane 66 °C
Observe that the lowest boiling point of the alkanes (the fuel in natural gas) is for propane at -190 °C.
The atmospheric boiling point of liquid nitrogen is −195.795 °C [3], wich is colder than the boiling point of any alkane!
What does this mean by definition? that a balloon filled with gaseous alkanes, when submerged in a heat bath of liquid nitrogen, and left to equilibrate temperature, will fully liquefy.
>Thermodynamics is well understood.
^ indeed
(This is my first order interpretation, assuming the mixing entropy does not decrease the boiling point of a mixture of alkanes, if however this is the case, I would like to see an explicit reference to a paper describing this for alkanes.)
So essentially heat exchangers and a supply of liquid nitrogen should be able to liquefy raw natural gas.
Now what about the economics of having to generate liquid nitrogen?
Let's take a step back: domestic natural gas pipelines connected to the gas grid doesn't contain liquid but gaseous natural gas. So at some point the liquid natural gas is expanded to a gas, and this absorbs heat at a low temperature. (I don't know at what point in the distribution chain this happens, but it necessarily happens somewhere.) This is the ideal point to colocate the liquid nitrogen generation plant: use the evaporation of LNG to gaseous natural gas to help the heat pump liquefy air/nitrogen, so the energy required to liquefy nitrogen is largely recycled.
The storage of liquid nitrogen at the gas well should be an entirely solved problem: at the exact sciences campus (de Sterre) of the Ghent university, at the solid state research block, there is a large (fenced off) tank of liquid nitrogen, and once in a blue moon a tank wagon comes to refill it...
[1] https://www.e-education.psu.edu/fsc432/content/natural-gas-c...
[2] http://chemistry.elmhurst.edu/vchembook/501hcboilingpts.html
My guess is that in practice, it's not profitable given the current price of natural gas and the difficulties of keeping liquid nitrogen cold - the smaller the container, the shorter the time it can economically stay liquid. So you'd need either pretty bulky equipment that needs to be moved once the gas at a well runs out, or you'd have to spend an awful lot of the energy from the gas keeping your N2 cold during transport. Which even if it is profitable on paper, might not survive contact with the field - oil leases are not controlled environments, and Murphey's law is out in force out there in a way that can be easily underestimated.
Plastic straws/bags/etc are obviously small (but not necessarily negligible) efforts. They rise to prominence mostly because they are easy to mock.
Yeah, I'm not really a believer in conspiracies, but the whole straw thing feels like a distraction campaign.
I started using Linux as a better and free system than win95, and only after a while thought about the bigger software freedom issues. Before linux, microsoft was just a random company for me. I am not alone in this respect. And look how far open source has come.
In the same way, straw banning can be a 'gateway drug' to environmental awareness. You've done your bit. So you acknowledged there was something to do. Then you dont want that small bit to be meaningless, so you do a tiny bit more All the while advocating to other people this is a worthy cause. Then you find how bigcorps are flagrantly violating the good cause. Of course this cant be right. And drip by drip you wear down a mountain.
Keeping everything else the same is hard with diets, but just cutting soda does seem to have a real impact.
A better analogy for the straw is skipping one fry in each meal. Technically that's an improvement, but the amount is negligible and if you act like it made a difference you're more likely to skip opportunities to actually force meaningful change.
Try swapping out the 'wrong' and 'good' with something else and the reasoning seems far clearer.
"Hey, I've done my two hours of volunteering at the orphanage, now let me go back to running my child sweat shop."
If you feel the scaling is unequal, change it. At any scaling I can imagine the initial reaction to someone seriously holding that view is disbelief and then mocking.
Edit: Did some googling, and this article sums up my concern nicely:
"Banning straws may confer 'moral license' – allowing companies and their customers to feel they have done their part. The crucial challenge is to ensure that these bans are just a first step."
https://earth.stanford.edu/news/do-plastic-straws-really-mak...
Comment with more details and a link to the study:
I can think of populations for which it's more necessary (e.g. the homeless) but as I think you've posted about before - the solution to that is to, well, fix the root issue, no?
Maybe it's an artifact of my upbringing - I literally couldn't afford takeaway food apart from the odd cone of chips (wrapped in paper) or whatever, a McDonalds meal with a straw etc is still something I think of as being absurdly expensive (it's like an hour at minimum wage).
Even middle class families in the UK often just don't eat out like this because it's both bloody expensive and usually crap food.
It's weird to me that people treat this luxury, and of fast food at that, as something that absolutely has to be protected?
When I was a homemaker, workers at grocery stores where I shopped would joke about getting me to talk to their wife do I could convince her to cook as much as I did. They could tell by the frequency of my visits to the store and the contents of my cart that most of our dinners were home cooked.
A lot of modern Americans don't really know how to cook. One expression for a woman who can't cook is "Microwave queen."
I hate microwave food and seldom eat it. I think most stuff that comes out of a microwave is pretty revolting.
In recent years, it has been my observation that grocery stores are simply mobbed in the days before a big holiday when the stores expect to close and a big home cooked meal is thw norm. I also routinely see comments on the internet about how impossible it is to cook for one person or how impossible it is to stay on budget and eat healthy when you don't have time or energy for anything but takeout.
I strongly suspect a lot of Americans don't do all that much cooking. Fast food seems to be basic survival for many Americans. They don't have the money or time for fancier restaurants and they don't have the skills or time to cook from scratch.
I've heard something like your last paragraph there a lot.
I don't really understand cooking as something that takes a lot of skill or time. I just made a stew whilst chatting on here, it took less than 10 mins and you just throw things in a pot.
Hell, if I had a McDonalds or whatever _next door_ it would take me more than 10 mins to get food from there.
What it does require is some level of capital investment - you need pots and pans, a hob, a stable place to store that stuff, etc. Which is a barrier.
The whole "Americans can't cook" thing just seems like a silly joke to me though. It's not like other countries don't have that sort of person. They'd figure it out if you took away their microwave bullshit, they're not gonna starve and die.
And of course, this is all tangential to the issue of straws. There we're talking about opening a tap and putting a cup under it. Or a bottle if you have no running water.
My dad was very old fashioned and never learned to cook. My oldest son found cooking scarily intimidating, though he did eventually learn to cook.
My mother is German and she cooked up a storm, plus sewed and knitted and crocheted. I'm actually one of the least domestic ladies of my extended family. I don't really like cooking and I never learned to sew or crochet or knit or quilt. I feel like some terrible failure of a woman in the eyes of my relatives, but Americans often seem to think I'm some kind of domestic goddess because I stayed home with my children, I cooked dinner most nights and we didn't live in squalor.
My oldest son was saying to me just recently that he thinks something went very wrong somewhere in the world that we don't know how to teach people to cook. Maybe it's some weird American thing.
I wrote a smidgen about him learning to cook here:
https://raisingfutureadults.blogspot.com/
I'm actually planning to start a blog about feeding yourself well because this seems like such a big issue for so many people.
Yeah, I totally understand what you're saying. I know it's a thing - I have old friends with extended families that are like this.
I'm pretty sure it is a weird American thing. It doesn't help that you guys have seemingly super cheap fast food.
One thing that might be interesting to look at is - if fast food just disappeared tomorrow - imagine every restaurant below say $15 a head just was gone overnight, microwave meals disappear, etc - would there even be enough food? Would the local supermarkets have enough or would there have to be an adjustment period?
If yes then the supply side of things is perfectly fine. Stores shelves might be low for a few days from the rush, but that will be over very quickly. All the interesting stuff is out of scope.
If no then I don't think the scenerio says anything useful about the places people eat. You're just deleting a chunk of the food supply, and you would cause similar problems no matter what random chunk you deleted. Even if it wasn't particularly big. So the scenario tells you nothing about whether any kinds of food are too popular. It just says that a sudden cut to the food supply is bad.
How many people don't have a stove i.e. they're effectively homeless if not literally on the street? Stuff like that.
I have no idea. It'd definitely be alright in the UK but the way I see Americans go on about this stuff on here makes it seem as if McDonalds is critical infra.
*The US is noticeably higher overall, but there are about 13 US states including NY and California with lower averages than the UK.
1 for 1,600 people in UK
1 for 1,700 people in US
> There we're talking about opening a tap and putting a cup under it
Requires a minimum grip strength and coordination.
If you don't have the time or skill to cook, you will find it tough to find the time to learn to cook. A lot of Americans are very time stressed.
It's not correct to look at, say, a father who can just let the woman of the house be the homemaker, or a person who just buys take out all the time, and say "they don't have the time or skill". I know people like this. The former is especially prolific - they will go ahead and pretend they can't cook, make silly unhealthy meals, because they can't be arsed and know that wifey will sort it all out.
They have what they consider to be a substitute good and so they don't need to cook. They could rapidly develop the skill if they wished to. No, they won't be some gourmet chef, but making mashed potatoes and stews and salads and stuff like that basically requires knowing that you can boil things to cook them.
You could compare it to, say, a well off parent who has no idea how to raise children because they just pay for a nanny or whatever. If you forced the issue; they lost their job, say; they would learn because the alternative wouldn't bear thinking about.
It's a hell of a lot easier to buy a hob and some pans, than it is to move home. Cars are a far more difficult issue because there are homes in locations that are simply too isolated to function properly without the mobility a car provides.
(Amusingly, I'm in temporary accommodation at the moment - it would be completely impractical to live here without a car, but also without home cooking, because the nearest fast food place is... I don't even know, probably over 50km away.)
Groceries are soooo cheap in America, take advantage of it.
Banning gas flaring would be extremely short sighted and counter productive.
Wikipedia claims:
These blackouts occurred as a result of a poorly designed market system that was manipulated by traders and marketers, as well as from poor state management and regulatory oversight. Subsequently, Enron traders were revealed as intentionally encouraging the removal of power from the market during California's energy crisis by encouraging suppliers to shut down plants to perform unnecessary maintenance
Sadly, Kenny never did any time and Skilling and Fastow are both now out of jail.
https://en.wikipedia.org/wiki/Enron#California's_deregulatio...
Which is exactly what you want people to do when a resource is scarce. Price signals work.
Hopefully his next step is to consider solar water heating. It's summer in Texas FFS.
Price signals may work but at the end of the day utilities need to be cheap enough that the poor can mostly use them without thinking twice. The elderly can't just turn off their A/C in high heat.
No, utilities need to be subsidized for the poor (perhaps through s general subsidy, or otherwise through a utility-specific one) and perhaps also those somewhat less poor with special needs so that they can use what is essential without undue hardship; the prices of utilities for the rich don't need to be low enough that the poor could pay them without thought.
So getting people who are able to do so to use _less_ of that scarce resource helps ensure it's available to those who need it.
We uses prices for almost everything with a scarcity, saying "well if we price this thing correctly the poor can't afford it" is an argument for addressing income inequality, not just trying to make everything an all you can eat buffet.
It's faster to do that than to go on the phone and complain or ask for a "discount" (where you would still be paying more).
(I don't know about other states, but this is extremely easy to do in Texas.)
Griddy's communication efforts have generally grown increasingly proactive since we joined in June 2017, and they have been very proactive over the past ~10 days. They sent informational emails on the 6th, 9th, 12th, 13th, and 14th notifying us about upcoming high-price/demand periods, what hours things are expected to spike, and providing suggestions for avoiding/mitigating energy use.
And yes, some cosumers may have chosen to be billed at spot prices like this, though probably not very many, and of course since it's spot pricing they were charged it back then, not now when you're writing this and the wholesale price is more normal.
It seems you sell it as the article is saying: at peak times you'll be selling it at $9 (ok maybe less) but that might be enough to justify the investment.
You can do the maths "Hmm, we need to make £2 per MWh of electricity at least once per day for this business to make sense" and look at price charts and say "Yup, that's feasible, today we will buy any time it's below £30 until we're full and we'll sell any time it's above £35 until we're empty" and make plenty of money. If only conveniently located mountain lakes were more common we'd probably have these everywhere.
The price decisions are tricky though, imagine you decide you should sell for £40 today, and then the wind just doesn't stop blowing at sea and offshore wind turbines (which will sell for any price at any time since their power is basically free) keep the price below £38 all day. You end the day with zero income. Not a game for people with limited capital reserves. Or you decide to buy once it falls below £40 on another day, but then every AC unit in the country is running non-stop and the cloud sit, unmoving but blocking the sun, prices sit above £50 all day. Again no income.
It wasn't built to make a profit, the government built it because it's a Black Start facility, ie it's one way to "boot up" the electricity grid if it fails and you need to start over from no electricity. But now it's privately owned by a French corporation and increasing use of renewables means more minute-by-minute price fluctuations to profit from.
I'm not sure how your friend knows his rate yet. The Griddy interface takes 24-48 hours to update/integrate the smart meter data for a day.
It's possible your friend's data integrates faster than hours, but we still see no summary for Tuesday usage. That said, the charged rate did max out (I think this is a regulatory cap) at around $8.99/kwh for a little over an hour yesterday (and was over $2/kwh for a few hours). I suspect there's been a miscommunication here?
For additional context, Griddy rates update every 5 minutes and just include the base power component (delivery/tax/etc. are roughly fixed per kwh).
Edit: BTW he just texted me: Tuesday's power bill was $14.65.
He's probably even crankier today :)
For additional context for others, our energy cost (not including other costs) for Monday were $1.24 for 14.4 kWh (88c for .3 kWh during the spike between 1pm and 4pm).
It looks like our Tuesday records showed up between my original post and now. We paid $3.18 for 15 kWh ($2.83 of that between 1-6pm).
It sure seems like if we're going to have millions of these 100kWh batteries plugged in, all nicely geographically distributed and internet connected, it would be swell if the owners could set a price at which they would be willing to sell their energy. It would just add another way that EVs are better than ICE cars.
The big factor I'm not sure about is the added COGS to the car. This [1] seems to say it's only $200-$300 in added cost of parts in the car. It's not clear if that's in addition to the added cost in the charge port, or instead of.
One important factor is even though the battery is capable of feeding perhaps up to 100 KW, if your charger is on a 40-amp 240v circuit, you are limited there to just 9.6kW. This drastically limits your ability to profit in the case of a spike, but then again, if there are several hundred thousand batteries competing with you, it's less likely to need to pull more than 10kW from any one battery.
They just have to have enough capacity to be cost positive after overhead.
Vehicle-to-grid would have to pay me a lot if it means I have to scrap my EV after 5 years instead of 10.
And if the power network is going to use half of my EV's battery's cycle-life and pay half my battery's cost, why wouldn't they just buy their own battery?
And if they're only going to activate V2G for a few hours a year, it'll have to pay high hourly rate to cover the cost of the extra car components.
On the other hand, just limiting charge rates in times of high demand doesn't degrade cars' batteries at all. Makes much more sense IMHO.
†Yes, it depends on the battery model, the temperature, the current - but we all know from phones that battery degradation is a real thing.
Same reason why they wouldn't just buy their own solar panels.
At $9/kWh (which is a truly absurd rate) the battery pays for itself in roughly 12 cycles.
At a less insane but still hefty $1/kWh margin, it would pay for itself in roughly 100 cycles.
Of course you wouldn’t scrap your whole EV, you would buy a new battery for your EV with the profits, and ideally end up with both excess income, and a longer overall vehicle lifespan, with longer effective ranges over time.
I’m sure someone has done all the math on this and knows exactly how good and cheap the EV battery has to be in order for this to be worth doing, and it seems like we’re nearly there.
Plus, with the same hardware plus a safety switch in the house, the EV becomes your house battery backup as well.
Discharging and charging your cars battery will cause wear, but I don't think It would be so fair to compare it to the degradation you see in other devices. Tesla has seen some success in getting more from its batteries by managing thermals [2] as well as limiting max and minimum charges to more healthy levels [3, we saw tesla give more capacity to units implying there is a reserve] [4, we know these cars will still drive even after there range is 'exhausted' for some time]
Considering the expense of batteries for cars maybe I wouldn't do it, but It is likely not so bad if you have a car with good power and thermal management
-0, https://batteryuniversity.com/learn/article/capacity_loss -1,https://cleantechnica.com/2018/12/05/60-kwh-nissan-leaf-stil... -2,https://www.teslarati.com/watch-tesla-battery-thermal-manage... -3,https://cleantechnica.com/2017/09/09/tesla-unlocks-extra-bat... -4, https://forums.tesla.com/forum/forums/reserve-power-when-sta...
Don't batter packs have a shorter useful life than most of the rest of an EV?
Say you have a 300-mile EV which averages 3 miles/kWh for a full useful capacity of 100 kWh. If the battery degrades to half that capacity the car would only go 150 miles which I think most people would consider well past EoL (manufacturer warranties will replace a vehicle battery once it degrades to 75-80% of original capacity).
However that battery can still hold 50 kWh which would be enough to cover my home energy use for a week (I live in a small apartment and don't run my AC much). For stationary applications the "useful life" of a battery can be much longer than for mobile applications.
I would hazard a guess that the battery becomes effectively useless before “capacity” actually reaches 50%.
I do wonder if this is a matter of going from 500 to 1000 cycles, or if it’s more exponential decay so we’re talking just 100 cycles between “no longer good enough for the EV” to “no longer good enough for the house/grid”.
IIRC, Tesla decided against V2G years ago out of concern for battery life, but given that they're now claiming the batteries will outlive the cars that decision may change.
If you are in the UK and have a Leaf with a 30kWh battery or larger, you can participate in a V2G trial: https://www.ovoenergy.com/electric-cars/vehicle-to-grid-char...
Technically, Leafs with 24kWh batteries work, too, but they aren't normally accepted in the trial as there is not enough capacity to be worthwhile.
0. https://www.ovoenergy.com/electric-cars/vehicle-to-grid-char...
Without fossil fuels we need to find new sources for power. It's not good enough to say 'electricity', how do you generate it at a capacity that fills in for the 20.5 million barrels of oil consumed a day in the USA?
The numbers are interesting. There is 17500 kw/h or 1.7 mw/h in a barrel of oil. Using 20.5m barrels a day, that's 34.85 million mw/h a day. The US currently generates around 10 million mw/h of electricity a day[1].
Granted, a fraction of a barrel of oil is used for gasoline, but you can see that the grid will need a sizeable upgrade if it is to fill in for our dependency on oil.
Please forgive me if I have some of this wrong!
[1] https://en.wikipedia.org/wiki/List_of_countries_by_electrici...
If the load can be computer controlled to exactly fit the supply curve, the electricity becomes extremely cheap to provide.
If that same load can basically instantly switch from charging, to paused, to discharging we end up with an extremely smart and efficient grid that can very effectively utilize high variance generation sources.
And as EVs become more common, I could absolutely see them being a useful tool in power generation. I'd absolutely allow the power company to control the home-charging of my car for a discount (and some agreement that i'd be able to charge to full at least once a day). The power company could enable more EVs to charge when there is a valley in demand, and turn some off when there are spikes. And all of that can happen without vehicle-to-grid systems which come with their own bag of tradeoffs.
Also, keep in mind that gas engines aren't 100% efficient (IIRC they are under 50% efficient). So even though there is theoretically 1.7 mw/h of power in a barrel of oil (I'm taking your number as true here), I assume that cars are only using a fraction of that (especially after all the refinement as well, which I'm assuming cuts into that efficiency even more).
Let's not be naive. If anything, you will pay the standard price if you allow them, otherwise you'll pay extra.
For simplicity though, let's limit to one of three states (0, full charging, full discharging). There are still 3^10 combinations for that one feeder. The utility needs to know that the system will work in all of those cases. Doing the analysis for that is quite complicated, and a lot of the tooling isn't there yet.
> Wind power generation in the region has plunged for three straight days, grid data compiled by Bloomberg show.
This happened in Australia earlier in the year. It's going to keep on happening, as long as the industry fails to account for the variance in output by wind power.
http://www.energyonline.com/Data/GenericData.aspx?DataId=4
Also such bumps do happen somewhat regularly (which is concerning), but this one was by far the largest recently:
So a price of $9000 per MWh is $9 per KWh.
Would you be complaining if it was "Texas Power Prices Spike Amid Scorching Heat"? Or "Texas Power Prices Max Out Amid Scorching Heat"? I think both those titles are fine, and they give about the same amount of information.
To spell it out. It's completely useless to mention $9k in the headline if you don't mention per how many units of energy.
Your suggested titles are IMHO better since they use qualitative language instead of a quantity with no reference point.
But you were agreeing with a claim that the headline itself was useless. That's not the same thing.
If the headline was useful without the number, which you seem to agree with[1], then the headline is still useful with the number. It's like adding an extra filler word to a sentence. The word is useless, but it doesn't ruin the sentence it's inside of.
[1] Note that the original headline already had qualitative information, and made it clear that this number was unusually high. It's not qualitative vs. quantitative, it's qualitative vs. both.
For example headlines in the UK green press mentioned a £45 per MWh strike price for new wind turbine. Strike prices are basically a guaranteed wholesale price. But consumer pricing would normally be presented as pence per kWh.
I have a few clients in this space. Texas, through ERCOT is a deregulated market. The “electricity company” or REP (retail electricity provider) merely purchases futures from ERCOT (the market maker) and bills you for your usage according to the pricing plan you have with them. In the end your provider must purchase from ERCOT at least as many MWh as their customers use.
Distribution and maintenance is handled by various regional companies and factored into the price by ERCOT
The market price is like a futures auction, of a commodity where demand peaks in August. This is why the spot price can be so ridiculous.
The thing is, nobody pays the spot price. If a REP must pay the spot price in August (because of inadequate hedging) they almost always immediately become insolvent. It’s the “third rail” of this industry, touch it and you die. At that point secondary measures kick in to ensure those customers are not without power.
If you have more questions please reply.
If I have a way to make, let's say, 30MW for up to 5 hours per day, and inject it into that system, could I get $9000 per MWh for that power during the period mentioned in the article?
If I wouldn't get $9000 then what purpose does this price signal have? "Oh great, the notional price I won't actually get paid went up. I will be sure to increase the notional amount of electricity I don't actually make"
The price is a reflection of the scarcity of generation and transmission capacity when its 101°F at 90% humidity and the entire state has the A/C on full blast.
If you were plugged in with ERCOT as a generator (guessing you don’t have the millions to build one), and you were the last to get told to start up, and you were close to the source of the need, you most certainly could earn that much. That’s what “peaker plants” are. You’ve probably heard about how bad they pollute.
Oh, and that price might only last for 15 minutes.
If you’re generating electricity “behind the meter” (from solar panels) they usually agree to some nominal price but chances are if it’s that hot your system is using your panels to augment your grid usage.
You say you'd get this price if you're last but surely it would make more sense to pay all generators the current winning price otherwise there's an incentive to guess and under-supply to get paid more.
I know the UK had to iterate a few times to make a system that wouldn't get gamed by suppliers, ensuring their incentives align with the power network stability and performance goals.
I've actually been reading recently about the other side of this, the retail side would like to force consumers to accept 15 minute metering. Current legislation forces consumers to be metered in hour increments, with 15 minutes only at their option but that might mean suppliers eat a spike like this one. Most home users are actually paying a fixed rate or simple on peak/ off peak system, with their off peak supply locally switched off by relays during peak times, but the law already provides for hourly rates. The long term idea is to load shed home users. Power spikes? Stop filling up those EVs and heating swimming pools rather than spin up another gas turbine.
ERCOT, MISO (mid-continent system operator), and CALISO (California) basically run the grid. The generators are all under contract and can be fined for not being able to spin up when asked. This is called an “unplanned outage” and it can really cause problems.
And Texas has plenty of land where putting in massive solar plants would do little ecological damage.
South Australia saw a 14000/mwh price for 5 hours earlier this year (Due to a 48 Celsius heat wave).
Hot days and wind generation are not correlated unfortunately.
Running a 1kw microwave costs 15 cents a minute.
Watching a 2 hour movie on a 65" TV costs a dollar.
Playing a PS4 is $2/hr.
Edit: Added @9/kwh because it wasn't clear that's what I was using in my calculations
A refrigerator will get you because it's running 10 hours a day. Much bigger, is the giant heat sink that is your water heater.
100W * 2 hours * ($9 / (Kilowatt * Hour) = $1.80
The vast, vast majority of power is purchased years (via PPAs) to days ahead of time at much more reasonable and stable prices.
It's an odd choice, it helps then in some ways, but hurts in others.
See the section titled "The Global Energy Grid:" http://peakenergy.blogspot.com/2009/02/buckminster-fullers-c...
"Texas’ solar market is about to catch fire"
With more than 5 GW of approved solar projects in the ERCOT grid, Texas is getting ready for a major boom in its utility-scale solar market.
https://pv-magazine-usa.com/2019/02/11/texas-solar-market-is...
Though the Niagara of money is going to be more like a modest rivulet of money since prices like these happen only a few hours a year, and Texas generally has low wholesale electricity prices.
For light coming from the sun, the hot object is 6000K and the cold object is around 300K. So about 95% of the energy is available to attempt to capture. 94% if your solar panel gets very hot.
The infrared coming off local hot objects is almost useless in comparison. If you can keep your infrared-catcher perfectly cooled with an underground loop, it will be at 290K. If you have an object that's all the way up at 150F, that's still only 340K and less than 15% of that energy could possibly be captured.
If you think solar is the solution stop and think.
Solar occurs during peak demand. You will need more solar then demand. That is a lot of solar.
Also when it gets really hot the wind often stops. Same goes for really cold. Wind farms often have to shutdown in cold conditions because of ice.
>This week’s price spikes also underscore how dependent the region’s power grid has become on wind farms, which now make up about a quarter of the generation capacity in Texas. Lackluster breezes have contributed to the higher prices, Hehir said.
This is one of the downsides of the push to "green" energy. While wind and solar are great, there can be significant variability. Unfortunately, battery tech is not there yet to help with the supply-demand mismatches.
Isn't this the situation that Elon's battery in South Australia was built to handle? From what I understand, it's been profitable and successful.
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Without something to handle soaring peaks, a friend of mine who works in energy described the power landscape as like needing a 100-lane wide bridge to deal with peak-hour crossing a city river.
It’s critically important and far more costly to do in other ways.
I think they actually just need more solar power - try to keep the two technologies approx even.
To a first approximation they are complementary and generate power at opposite time periods (stormy windy weather has clouds, hot dry weather has no wind but does have lots of sun).
https://en.m.wikipedia.org/wiki/Pumped-storage_hydroelectric...
For example heat my water to 140% the ideal temp and cool a thermal sink for ac when I’m away from home during peak solar.
Then when I’m at home and it’s no longer sunny my electricity needs are nil as I utilize the pre stored coolant and heat.
Haven’t done the math but I’d assume a 500 gallon water tank that’s heated or cooled during peak solar with insulation could be used to keep your home at the perfect temperature by using excess solar.
Steam too, but it’s better for transport versus storage. You could melt wax if space was at a premium.