Analysts and data indicate that Texas is poised to experience an escalation in power prices this summer due to intense heat and increasing electricity demand, according to Reuters. Fluctuations in the balance between power supply and demand in the United States, exacerbated by unpredictable weather events, can trigger sharp increases in wholesale electricity prices, ultimately burdening businesses and households with higher costs.
Spot wholesale electricity prices in the Texas power trading hub for August have consistently traded above $175 a megawatt-hour (MWh) so far this month, compared to an average of $90.18 per MWh for August last year, data from S&P Global shows. Sean Kelly, CEO of energy analytics and forecasting at Amperon said, “With the growth of renewables, the retirement of baseload fossil-fired generation and the dependence on renewables, on days renewables are not showing up, it is going to be very pricey.”.
As the dependence on renewable energy grows, so does the need for Long Duration Energy Storage (LDES). Having accessible energy stored at scale, for when the sun doesn’t shine; and the wind doesn’t blow will be vital going forward.