Want Free Electricity? Move to Texas

Submitted by Wall St. Daily as partial of a contributors program

Want Free Electricity? Move to Texas

Texas Electricity Island Creates Negative Energy Prices

By Samantha Solomon, Editor-in-Chief, Commodities

The unfit happened on Sep 20. In a center of a night, a mark cost of electricity in Texas fell next 0 and strike -$8.52 per megawatt hour during a lowest point.

The cost hovered around 0 or reduction until around 8:15 AM when people started waking adult and regulating power to make their morning coffee and check a news.

Why would providers in a state in adore with a giveaway marketplace sell a product for no cost? Well, it’s partially due to Texas’ vast commissioned wind ability – 12,625 megawatts, to be exact.

Surprising, we know, though this oil-rich state got 9% of a electricity from wind power in 2014. Of course, we can’t control when a wind blows. That’s one of a power source’s downfalls and because storage is so necessary.

Last week, a wind was clever in a center of a night, when power direct was during a lowest. All other energy producers tempered their prolongation and violent wind power dominated a energy mix.

No One’s Like Texas

Now, Texas also has an surprising energy marketplace structure. Of a 48 continental states, Texas is a usually “electricity island.”

You see, many states are partial of vast informal networks, definition energy is common opposite state lines. But Texas’ grid is self-contained. This means it isn’t influenced by blackouts in adjacent states, though also that is has to use all a electricity it produces.

The grid is run by a Electric Reliability Council of Texas (ERCOT), that has set adult a difficult continual auction system.

As reported by Slate, “Every 5 minutes, power generators in a state electronically bid into ERCOT’s real-time market, charity to yield chunks of energy during sold prices. ERCOT fills a open needs by selecting a bids that are cheapest and that make a many clarity from a grid-management perspective . . .  Every 15 minutes, a bids settle during a tip cost paid for electricity supposed in a round.”

This multiple of factors – vast amounts of wind power, an electricity island, and continual behest – led to a disastrous price. Demand was low, a wind was blowing, and providers could usually sell to ERCOT.

On tip of that, wind power producers automatically get sovereign subsidies for each kilowatt produced. So, they had each inducement to sell for as low as possible.

Seems like Texas needs to get some electricity storage. And maybe Texans need to start waking adult in a center of a night to do their laundry, run their dishwashers, and watch TV.

Good investing,

Samantha Solomon

The post Want Free Electricity? Move to Texas seemed initial on Wall Street Daily.
By Samantha Solomon

Can a US Jump-Start Offshore Wind Power?

The Department of Energy has awarded around a half-million dollars to New York, Maine, Rhode Island and Massachusetts state organizations to concur on scaling adult a offshore wind attention in a region.

Under a care of a New York State Energy Research and Development Authority (NYSERDA), a organisation will lay out a collaborative highway map by a finish of a year on how to build adult a new industry. The plan mostly aims to revoke a cost of offshore wind projects, that has been a separator to development, and settle a informal supply chain.

Industry and state member schooled about a sovereign extend during a first-ever offshore wind limit hosted by a White House yesterday.

Offshore wind has struggled to take off in a United States. Europe, meanwhile, has some-more than 80 offshore wind farms with some-more than 10,000 megawatts of capacity. The White House limit outlines a renewed bid to get a attention going in a United States, pronounced several attendees.

“There’s a genuine joining and enterprise to pierce offshore wind forward,” pronounced Warren Leon, executive executive of a Clean Energy States Alliance (CESA), who was during a meeting. “There’s a approval that it’s not easy; this is a record that is not now inexpensive or easy to pierce into a marketplace, though it’s really most value focusing on since a rewards for a electricity system, for a sourroundings and for jobs would be so good.”

CESA will assistance coordinate a widespread project, he said. The organisation will initial accumulate submit from opposite stakeholders to find out where extended investigate is needed. The states concerned could eventually figure out ways to concur on building delivery lines, giving out permits or stuffing out environmental impact analyses, he said.

The scarcely $600,000 was awarded as partial of a Department of Energy’s State Energy Program, that saved 12 projects.

A informal plan takes shape
The White House also announced other initiatives meant to boost a nation’s offshore wind attention during a limit yesterday, including increasing partnership during a organisation and general levels. The Council on Environmental Quality and Domestic Policy Council will lead a White House Interagency Working Group on Offshore Wind, that will also accumulate member from other sovereign agencies, according to a statement from a White House.

Also, a Department of a Interior’s Bureau of Ocean Energy Management has begun organizing a multilateral organisation to collect and share imagination on offshore wind regulations and record from attention leaders in Germany, Denmark and a United Kingdom. Yesterday afternoon, experts from abroad and from a United States common strategies on scaling adult a attention during a hearing held by a Environmental and Energy Study Institute.

The opposite sovereign initiatives come as a offshore wind attention is “picking adult movement after a lull,” pronounced Kit Kennedy, executive of energy and travel for a Natural Resources Defense Council, who was during a White House meeting.

The offshore wind attention has gifted unsatisfactory developments in new years, including vital setbacks to a due Cape Wind plan in Massachusetts’ Nantucket Sound. That encouraged a news progressing this year to titillate a multi-state proceed to reinstate a stream plan to get a attention on a feet again (ClimateWire, Feb. 17).

Earlier this summer, construction started on what is approaching to turn a initial offshore wind plantation in a United States off Block Island in Rhode Island by Deepwater Wind. The $225 million, 30 MW plantation will have 5 turbines and is scheduled to start producing energy subsequent year. Last week, DOE announced it will reason an auction for a rights to build wind turbines in 344,000 acres of sovereign waters off New Jersey in November, a latest of several franchise auctions it has announced (EENews PM, Sept. 23).

Kennedy applauded a sovereign support for a informal highway map though stressed that in a meantime, particular projects should keep pulling forward.

“The informal proceed to scaling adult offshore wind is an engaging and earnest proceed as enlarged as it leads to organisation commitments to build offshore wind in any state, rather than a enlarged investigate process,” she said. “A tube of offshore wind projects has to start somewhere.”

Reprinted from Climatewire with accede from Environment Energy Publishing, LLC. www.eenews.net, 202-628-6500