Texas electricity demand hits record high due to hot weather
Electricity demand hit a record high on Tuesday as homes and businesses in Texas turned on air conditioners to beat the heat.
Texas has seen a population surge in recent years and is a hub for energy-intensive industries such as data centers and cryptocurrency mining, which has increased demand for electricity and added pressure on its fragile grid.
After breaking peak demand records several times in April and May, peak electricity demand in Texas reached a preliminary 85,558.98 megawatts (MW) on Tuesday, surpassing the previous record of 85,508 MW set on Aug. 10, 2023, the Electric Reliability Council of Texas said.
The council, which operates much of the grid for 27 million customers, said it expected demand to fall to 85,921 MW on Wednesday.
Grid operators also said the grid was operating normally and there was enough supply to meet expected demand.
Under normal circumstances, one megawatt of electricity can power 800 homes, but on a hot Texas summer day, when homes and businesses turn on their air conditioners, one megawatt can power only 250 homes.
Temperatures in Houston, the state's largest city, are expected to reach 103 degrees Fahrenheit (39 degrees Celsius) on Tuesday and drop to 100 degrees Fahrenheit (38 degrees Celsius) on Wednesday, according to meteorologists.
By comparison, the normal high for this time of year is 95 degrees Fahrenheit (35 degrees Celsius).
Next-day electricity prices at ERCOT's northern hub, which includes Dallas, rose about 157% on Tuesday to a two-week high of about $102 per megawatt-hour, according to pricing data from the London Stock Exchange.
That compares with an average price of $57 per megawatt-hour through August, $33 so far this year, $80 in 2023 and $66 from 2018 to 2022).
According to the grid operator's website, real-time prices surged to nearly $1,600 per megawatt-hour in a 15-minute period around 6 p.m. Monday.