July 18 — The Texas wholesale power market is designed to favor the lowest-cost electricity generation, which happens to be wind and solar. But renewables are as reliable as the weather, so they require back-up power generators. ERCOT relies on natural gas fired plants to step in when the wind and sun stop. But there’s little incentive for investors to build back-up plants, or any kind of fossil fuel plant, because the typical price of electricity is so low, they can’t make a profit.
Dallas Morning News (Commentary): Pat Wood helped create Texas’ electricity market, then he lost power for 36 hours in the freeze
Jul 21, 2021 | News Roundup