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by buckle8017
456 days ago
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The Texas grid was deregulated in an era where solar and wind were not price competitive. The price competitive producers were all stable fossil fuels, natural gas and coal. They failed to take into account unreliable low cost producers forcing reliable but marginally more expensive producers out of the market. If solar/wind producers had to guarantee power 24x7 at fixed rates the cost would vastly exceed natural gas costs. They just need to change the contract requirements to match reality. |
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Absent turning the Texas energy market into a more rational design (I was part of the energy market during dereg, these failures were predicted by our energy economists at the time), the state should mandate weatherization for wind generation at a minimum, and look into grid-scale battery requirements as prices fall and technologies mature.
Solar and wind are fantastic opportunistic power generators that work well together and should be a significant part of any grid's energy mix going forward, but the state needs to act like every other power market and pay for spinning fossil fuel capacity for shoulder and peak demand. Picking energy mix winners and losers is just political meddling in what was supposed to be a free market environment.