LUBBOCK, Texas (PRESS RELEASE) — The following is a press release from the Federal Reserve Bank of Dallas:
In a new post on Dallas Fed Economics, Garrett Golding discusses potential risks to electricity generation adequacy in the state of Texas given the increased reliance on renewable energy, the higher maintenance and repair time for thermal power plants and a much lower margin for error given the risk of future adverse weather events.
“Renewable electricity amounted to one-quarter of the power consumed in 2020, up from just 8 percent in 2010. More is on the way, with solar capacity set to quadruple by 2024 from comparatively low levels today. Because availability can be intermittent, renewables require backup from other power plants to meet electricity demand. Meanwhile, aging coal, nuclear and gas (together known as “thermal”) power plants in Texas require more-than-expected downtime for maintenance and repairs—raising the risk of generation falling short during high-demand periods. What’s more, Texas’ electricity consumption will only increase with population migration, electrification of transportation and growing demand from industrial sources such as data centers and petrochemical facilities.”
(Press release from the Federal Reserve Bank of Dallas)