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Texas power demand set to exceed during heat wave, grid operator says

The Texas power grid operator is expecting electrical energy use will break an alltime need record on Tuesday as homes and companies crank up air conditioning system to escape a heat wave extending across the state.

Texas' surging population development in the last few years and its status as a hot spot for a few of the most energy-intensive markets, including information centers and cryptocurrency mining, have actually ramped up power use in the state and increased tension on its vulnerable electrical grid.

After breaking peak-demand records several times in April and May, Texas peak power need is forecasted to increase to 85,989 megawatts (MW) on Tuesday, which would top the grid's all-time peak of 85,508 MW set on Aug. 10, 2023, according to the Electric Reliability Council of Texas (ERCOT).

ERCOT, which operates the majority of the grid for 27 million customers, said it anticipated need would ease to 85,921 MW on Wednesday.

The grid operator also said the power network was running generally, with adequate supply readily available to fulfill anticipated need.

One megawatt can power 800 homes on a regular day however as couple of as 250 on a hot summer day in Texas, when homes and organizations turn up a/c.

Temperature levels in Houston, the state's biggest city, are expected to reach 103 degrees Fahrenheit (39 degrees Celsius) on Tuesday before alleviating to 100 F (38 C) on Wednesday, according to AccuWeather meteorologists.

That compares with a regular high of 95 F (35 C) for this season.

Next-day power prices at the ERCOT North Center << EL-PK-ERTN-SNL >, that includes Dallas, leapt about 157% to a. two-week high of around $102 per megawatt hour for Tuesday,. according to LSEG pricing data. That compares to an average of$ 57 per

MWh so far in. August, and $33 up until now this year, $80 in 2023 and $66 over the. prior 5 years( 2018-2022). Real-time costs in ERCOT skyrocketed to nearly$ 1,600 per MWh. during one 15-minute period at around 6 p.m. regional time on. Monday, according to the grid operator's website. So far on Tuesday, however, real-time prices have only

hit a. high of$ 32 per MWh throughout one 15-minute period.

(source: Reuters)