Scott DiSavino
(Reuters) – Electricity use in Texas hit a May record on Monday and is likely to surpass that high next week as homes and businesses keep their air conditioners running to avoid spring heat.
The extreme weather in Texas is a reminder of the February 2021 freeze that left millions without power, water or heat for days and led to more than 200 deaths as the state’s grid operator scrambled to prevent the grid from collapsing.
The Electric Reliability Council of Texas (ERCOT) said the system is currently operating normally and there is enough supply to meet expected demand throughout the week.
ERCOT reported that power demand reached a preliminary mark of 72,261 megawatts (MW) on May 20, surpassing the previous May record of 71,645 MW set in 2022.
The record came as a surprise to some market participants, as earlier in the day ERCOT had forecast lower demand, in part due to ongoing power outages in the Houston area due to last week’s severe storms.
The record likely won’t hold for long: ERCOT forecasts demand will reach 73,537 MW on May 21, 74,904 MW on May 24, 75,310 MW on May 26 and 75,868 MW on May 27.
The maximum grid capacity was 85,508 MW on August 10, 2023.
Analysts expect ERCOT’s power consumption to surpass this all-time high this summer as the economy and population grow in Texas, as well as rapid growth in demand for electricity from data centers, artificial intelligence (AI) and cryptocurrency mining.
One megawatt can typically power about 800 homes on a normal day, but only 250 on a hot summer day in Texas.
High temperatures in Houston, Texas’ largest city, reached 90 degrees Fahrenheit (32.2 Celsius) on Monday for the third day in a row and are likely to remain in that range until May 23, before rising to around 95 degrees, the company said. May. AccuWeather meteorologists.
The normal high in Houston this time of year is 87 F.
Despite May’s record, spot electricity prices at ERCOT’s North Hub, which includes Dallas, fell to $32 per megawatt-hour (MWh) on Tuesday from $34 on Monday and an average of $47 over the previous seven days, according to data data on prices at the LSEG terminal.
This compares to an average of $30 per MW this year, $80 in 2023 and $66 over the previous five years (2018-2022).