Comment by frenchman_in_ny

Comment by frenchman_in_ny 7 hours ago

There's a very specific reason (or quirk) as to why Texas leads the nation in renewable energy -- ERCOT. Basically, 90% of Texas' electric load is serviced by in-state assets, and they have very few interconnections to the rest of the grid. The electricity dispatch curve is priced on the margin, on the cost to operate the last-fired generator (natural gas), and ERCOT has moved to grow solar as a way to reduce prices.[0]

ERCOT has also had a number of spectacular -- and costly -- failures.

[0] https://en.wikipedia.org/wiki/Electric_Reliability_Council_o...

Scoundreller 5 hours ago

What's their argument against interconnects though?

Especially as you install more wind and solar, capturing (or sending) generation across a wider geographic area should regress-to-the-mean production and consumption better without turning on peaking plants that may be on for only hours a year. Or get natgas generation from areas where the natgas infra hasn't frozen solid.

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toomuchtodo 5 hours ago

Avoiding federal regulatory oversight.
https://www.ferc.gov/introductory-guide-electricity-markets-... ("ERCOT is not subject to federal (FERC) jurisdiction because its grid is not connected to those of other states. Thus, power sales in ERCOT are not considered sales in interstate commerce and not subject to federal (FERC) oversight. That said, ERCOT runs some electricity markets that have similarities to those described herein.")
Edit: This is only up until recently; Texas is seeking to potentially interconnect with neighboring grids, forgoing FERC independence in the process.
Texas Bill [H.B. 199] Opens ERCOT to Grid Interconnection - https://www.environmentenergyleader.com/stories/texas-bill-o... - July 25th, 2025 ("A completed interconnection—either synchronous or non-synchronous—would likely bring ERCOT under partial federal jurisdiction for the first time since its creation. Currently, ERCOT operates almost entirely within Texas to avoid triggering FERC oversight under the Federal Power Act.")
Connecting Past and Future: A History of Texas’ Isolated Power Grid - https://www.bakerinstitute.org/research/connecting-past-and-... - December 1st, 2022
Why Texas Has Its Own Power Grid - https://slate.com/news-and-politics/2003/08/why-texas-has-it... - August 18th, 2003

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- lesuorac 4 hours ago
  
  This has got to be more of FERC doesn't want to regulate ERCOT though no?
  > [1] In the 1939 case United States v. Rock Royal Co-op, the Supreme Court had included milk processed and sold entirely within the state of New York within the federal government's purview because the company used a mixture of raw milk from farms within and outside the state of New York.
  Like there's no way all of the energy in Texas only comes from Texas supplied materials.
  I can't find the court case I want but there's another one about how somebody's local consumption had an effect on the interstate price so growing plants for local use can be federally regulated. And therefore, to me, FERC's existence effects the price of electricity on the rest of the states.
  [1]: https://en.wikipedia.org/wiki/United_States_v._Wrightwood_Da....
  
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- Scoundreller 5 hours ago
  
  Maybe my wording is incorrect, I should have said "ties" instead of interconnects. Texas has several, just not much in aggregate capacity (can supply ~1-2% of peak demand):
  https://en.wikipedia.org/wiki/Texas_Interconnection (see Ties section)
  (Yes, they have to be HVDC or VFT).
  Quebec operates like Texas does, for political reasons too, with ample export and import capacity (import/export capacity = 15/20% of peak consumption)
  
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inamberclad 3 hours ago

It makes fantastic sense in Texas too because air conditioning is such a high portion of demand. Clean energy production reaches its peak at midday when everyone has their AC going flat out.

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