Energy forum focuses on Texas electric reliability now and in the future

The top man overseeing the Texas electric grid came to Dallas Friday with assurances about current supply and plans for future demand.

Electric Reliability Council of Texas Chief Executive Officer Pablo Vegas told an energy forum luncheon about the magnitude of Texas electric requirements.

“We use on our peak day more power than California and New York does on their peak days combined. So, we are massive energy consumers,” Vegas said.

Unlike the deadly 2021 winter freeze, when rolling blackouts kept large areas powerless for days, this year’s cold snap left some snow on the ground but did not cause power outages.

Vegas said customer action on calls for conservation helped keep demand below supply.

But winter is not over and hot summer days are coming that will test the power grid.

“We are doing everything here in Texas to incentivize the growth of the energy we need to serve everybody every day. And we’re starting to see some real payback from the investments and the changes that the legislature has made recently,” Vegas said.

It was a room full of energy executives listening to Vegas Friday at an event sponsored by the Jackson Walker law firm and the North Dallas Chamber of Commerce.

The chamber is concerned about preparing for future growth.

“Demographers are projecting that we exceed Chicago and become the 3rd largest metropolitan statistical area in the country by the year 2030. That’s just a few short years away. It’s astounding,” North Dallas Chamber CEO Ken Malcolmson said.

A big increase in renewable energy sources gets credit for helping to meet current Texas power demand, including solar power and wind power from giant turbines.

But those sources tend to be far from population centers where electric demand is highest.  

More power lines are needed to move the energy.

Vegas explained the history of the Texas grid that has isolated the state from surrounding power networks.

“Effectively we are an electric island,” Vegas said.

Surrounding states have power sources too, but they are even further away from Texas population centers.

“Connecting Texas to outside of the state could be another way to do that, but historically it hasn’t been a very cost-effective way to do that. And you can actually get better reliability for a lower cost to Texans when you build inside,” Vegas said.

So more lines to more Texas sources is the plan to meet growing demand, along with improved battery storage that could help fill gaps when solar and wind are weak.

Pablo Vegas joined ERCOT as CEO in 2022 as part of a wave of reports after the deadly 2021 winter power outages.