Above, Texas Blackout synopsis from PBS Nova. Confirms the events reported here, as well as the 130 billion dollar cost figure that I have seen elsewhere – which, if true, makes this the costliest weather disaster in US history.
Big question has been, how to prevent this from happening again, and who should pay.
One early proposal would have ratepayers spring for a fleet of new gas turbines with onsite fuel storage – to be used only in emergencies. Not surprising that this might have some attraction for oil/gas proponents in the state – however, with the announcement that Tesla has a 100 MWhr Li-on battery installation nearly completed, I will be watching with interest to see if the gas proposal gets traction.
A system of “emergency only” gas plants would be fantastically expensive per MWhr, as they would be “peakers” that would only see service in times of huge demand.
Li-on battery installations can make big money by providing grid services right from the start, and pay back their own capital costs in very short order, which would seem to make them a natural solution to the problem in a supposed “free market” based grid structure.
I’d bet the batteries are going to be built anyway, but interesting to see if the legislature saddles rate-payers with costs of a new gas system.
As the Texas Legislature debated how to respond to last month’s winter storm-driven power crisis, executives at billionaire Warren Buffett’s Berkshire Hathaway Energy were pitching lawmakers an idea: The group would spend over $8 billion to build 10 new natural gas power plants in the state. Lawmakers would agree to create a revenue stream to provide Berkshire a return on its investment through an additional charge on Texans’ power bills.
Representatives for Berkshire Hathaway Energy have been in Austin meeting with lawmakers and state leaders for the past week and a half, according to a person working closely on the issue.
The proposed company, which would likely be known as the Texas Emergency Power Reserve, would build and maintain plants that sit idle during normal times, according to a slide deck obtained by The Texas Tribune. Whenever demand for power in the state threatened to surpass supply, these new plants would kick in to make up the difference, if ordered to do so by the state’s grid operator.
“When you flip that switch and say, look, demand has exceeded supply, it has to come on in 10 minutes,” Chris Brown, CEO of Berkshire Hathaway Energy, said in an interview Thursday with the Tribune. “That’s the Texas Emergency Power Reserve promise — that’s the promise that we’re making to the citizens of Texas.”

