Connecting Texas to US grid could have ‘chilling effect’ on new generation, ERCOT warns

By Catherine Morehouse | 02/16/2024 06:53 AM EST

“Developers could view an increased import capability from potentially less expensive markets as a significant disincentive to build new generation facilities in Texas,” the Electric Reliability Council of Texas said.

Texas’ grid operator warned that connecting to the U.S. grid could freeze development of new power plants in the state, following the release of a bill introduced by congressional Democrats that would require the state’s isolated system come under federal rule.
the release of a bill introduced by congressional Democrats

Joining Texas to the broader U.S. power grid has become a bigger debate since the state was forced to trigger mass blackouts three years ago during a cold snap that left millions without power and left more than 200 people dead.

But many Texas grid officials remain skeptical that connecting the state’s grid is the best solution.

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“More [direct current] Tie capacity could have a chilling effect on any new, native generation built in Texas,” the Electric Reliability Council of Texas said in a statement. “Developers could view an increased import capability from potentially less expensive markets as a significant disincentive to build new generation facilities in Texas.”

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