Electricity Grid Overview: Why is Texas’ Grid on the Brink of Collapse?

Image taken from U.S. Energy Information Administration

By Sarah Brusseau

Electricity Grid

An electricity, or electrical, grid is an interconnected network of transmission and distribution facilities that allows electricity to be delivered. Electricity can be generated through power plants, solar panels, wind turbines, and hydroelectric dams. After electricity is generated, it is then delivered through transmission and distribution power lines. The larger, tall, metal towers you see when driving are high voltage transmissions lines; these carry electricity over long distances. What you see in your backyard, however, are low voltage power lines used for homes and businesses. Transformer substations assist in adjusting voltage levels throughout the power line process.

A problem with the U.S. electrical grid system, though, is its failing infrastructure. The first electricity grids were created in the 1870s and 1880s; these systems were small and focused on delivering electricity locally. Over the past nearly 150 years, of course, these grids have massively adapted and expanded. However, the equipment is aging, and changes must be made to incorporate renewable energy power sources. Also, a major challenge facing the infrastructure of the electrical grids is physical and cyber-attacks. In April of 2021, it was reported President Biden and the White House have a plan in place to encourage electric and utilities companies to install advanced monitoring systems in hopes of detecting and preventing cyber-attacks on the power grid. Cyber-attacks range from hacking into corporate email accounts all the way to controlling the actual flow of power. The United States takes cyber-attacks very seriously; the 2021 legislative session saw over 250 bills and resolutions addressing cybersecurity in at least 45 states.

Energy Production 

The U.S. electricity grid is a complex system, made up of 7,300 power plants with 160,000 miles of power lines. It also uses a variety of energy sources. Coal, petroleum, natural gas, and oil are the main fossil fuels used in electricity production. In addition to fossil fuels as a power source, nuclear energy and renewable energy can be used. In 2020, the U.S. energy mix was composed of 35% petroleum, 34% natural gas, 12% renewables, and 9% nuclear electric power. The U.S. is a global leader in greenhouse gas emissions, as can be detailed by fossil fuels accounting for nearly 80% of the U.S. primary energy mix. However, the U.S. is also a global leader in renewable energy sources and technologies. For the first time in over a century, the U.S. annual energy consumption of renewables surpassed coal as a source of consumption in 2019. Solar and wind energy are the most promising, and rapidly expanding, renewable energy sources in the U.S.

A Case Study: The Texas Power Grid

 The U.S. electricity grids are divided into three major interconnects; the Western interconnect, the Eastern interconnect, and the Texas interconnect (ERCOT). States in the Western and Eastern interconnect are subject to federal regulations because of the Commerce Clause. The Commerce Clause holds Congress is given power to regulate commerce among the states, and electricity dispersed through the Western and Eastern interconnects cross state lines. The Federal Energy Regulatory Commission (FERC) is the independent agency that regulates interstate the transmission and sale of electricity at wholesale markets. However, in order to avoid being subject to federal regulations, Texas chose to create its own interconnect in 1970. ERCOT, the regulatory agency of the Texas electricity grid, represents 90% of the state’s electricity load and supplies electricity to over 25 million Texans. In addition to not having to comply with federal regulations, the cost of power is lower in Texas. However, in February 2021, the Texan way of self-reliance led to the death of 151 people.

Climate change does not just mean global warming; it includes extreme weather patterns, as can be demonstrated by the Texas winter storm that occurred three months ago. The winter storm caused 70% of Texas residences to lose power for days. Texas largely relies on natural gas for power (43% to be specific), and natural gas is pumped from the ground. With the extremely cold temperatures, natural gas cannot be pumped from the ground at a rate necessary to keep production levels up. Also, natural gas has water vapor in it; when the freezing temperatures came, the water vapor froze. Because of the failures of natural gas operations, the entire Texas grid was less than five minutes away from total collapse, which would have resulted in loss of power to the state for weeks.

The lack of natural gas is not the only reason for the near collapse of ERCOT, though. A number of factors played into the loss of power. Texas does not require power companies to have a ‘reserve margin’ of power stored; in fact, companies are incentivized to underproduce, unlike in the Eastern and Western interconnects. When there is a limited supply of electricity prices will skyrocket and companies can charge a substantial amount for one megawatt; the withdrawal of generator services hikes the price of electricity up. Also, Texas, being an isolated system, is also not able to connect to one of the other two U.S. interconnects if needed. Oklahoma, for example, was hit with the same winter storm as Texas, but they were able to receive power from neighboring states. This almost complete loss of power, and loss of life, could have been prevented had Texas been part of the Western or Eastern interconnect.

Texas Governor Greg Abbott blamed the loss of power on green energy technology. However, wind and solar energy powers only 10% of Texas and it is clear renewable energy was not the cause of a near blackout. In fact, solar actually outperformed itself during the time of the collapse; it was planned that solar would produce 0.3 gigawatts (GW) during the freeze, but actually produced 2.7 GW. Texas has vowed to look into this “problem” and make sure it does not happen in the future. Former Texas Governor Rick Perry stated Texans would accept longer power outages, “to keep the federal government out of their business.” In the meantime, Texans are suing energy companies for their electric bills received during this time; electric bills averaged $2500 a day for those who were able to turn on their power when rolling blackouts began 2 days into the freeze.

The U.S. electricity grid is a complex system. It requires infrastructure updates, is in the process of transitioning to being powered entirely by renewables, and must be protected from weather events and cyber-attacks. Climate change is real and relevant. Mitigation and adaptation measures are crucial in tackling climate change and ensuring health and safety for all.