Tag Archives: Texas energy fiasco

Unintended Consequences and The Texas ‘Big Freeze’ Energy Disaster, by Ron Paul

The Texas “Big Freeze” was yet another in a long line of political and government-sponsored disasters. From Ron Paul At ronpaulinstitute.org:

Last week Texas experienced a cold snap that resulted in serious statewide damage, death, and destruction. The collapse of the state’s energy grid left millions of Texans in the dark and freezing for days at a time. Tragically, at least 30 people died.

There are many reasons why Texas became like a Third World country, and we should be careful not to pin all the blame on just one factor. But it seems clear that the disaster was to a large degree caused by political decisions to shift toward “green” energy generated from solar and wind and by Governor Abbott’s authoritarian Covid restrictions.

Abbott, who won a “wind leadership” award just this month, oversaw the near-collapse of wind energy generation last week. Yet the politicization of energy generation in favor of “green” alternatives over natural gas and other fossil fuels has led to the unintended consequences of freezing Texans facing multiple millions of dollars in property damage and worse.

Additionally, federal emissions and other restrictions forced Texas to beg Washington for permission to generate power at higher levels in anticipation of unprecedented demand. Governor Abbott finally received permission from the Department of Energy on February 14th, but by then many facilities found themselves off-line due to freezing conditions.

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Who’s to Blame for the Texas Power Crisis? by Leonard Hyman and William Tilles

There’s more than enough blame to go around for the Texas’s deadly fiasco. From Leonard Hyman and William Tilles at wolfstreet.com:

Our last report focused on the uniqueness of the Texas wholesale electricity market, ERCOT, and how it was specifically designed to evade federal utility regulation. And as if he were our paid spokesperson, former Texas governor Rick Perry stated publicly that Texans were happy to suffer blackouts and other hardships if it meant evading federal regulatory scrutiny. Whether the good (and shivering) citizens of the Lone Star State agree is another matter. But today, instead of dealing with politics, we’ll take a closer look at ERCOT as a state planning agency.

First the good news. One of the hardest parts of every planning agency’s job is correctly estimating future demand. This is doubly hard in a dynamic, fast growing economy like Texas. Consequently we were surprised at how good their planning estimate was for this winter’s electrical load of about 67,000 megawatts.

Because of the blackouts we can’t precisely know what peak electrical demand in Texas would’ve been given the extreme winter demands from home heating and the like. But the shadow estimates published by ERCOT suggested about 72,000 megawatts of peak demand.

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