To read the full article in MegaWatt Daily, click here.
PA's Ryan Hardy, an energy market expert, is quoted in an article in MegaWatt Daily. The article offers insight on the implications of the most recent monthly Demand and Energy Report from the Electric Reliability Council of Texas (ERCOT).
Commenting on this topic, Ryan states: “As of today, it’s hard to see wind generation reaching a 50% threshold- at least over the next decade.”
Ryan continues: “As wind continues to gain energy share, it’s important to evaluate the potential impact on the system. For one, ERCOT will need to evaluate the impact of transmission and related congestion. Parts the panhandle in West Texas are already experiencing significant congestion, and if wind capacity continues to grow, there will need to be continued transmission investment to support it.”
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Ryan goes on to say: “While wind served almost 22% of the energy in March of 2016, that percentage falls to less than 10% in August- ERCOT’s peak demand month. Extrapolating that a few years into the future, and considering ERCOT’s overall low energy price environment has stalled new thermal capacity development, the system could experience issues with reliability.”
Ryan concludes: “Overall, we believe ERCOT’s wind build-out will slow in coming years, driven primarily by expiration of the PTC, investment in other renewable technologies including solar and potentially storage, as well as reaching the potential limitations from a transmission perspective.”