Good morning! Welcome to the first installment of “Energy News in Your Texas Community” for First Choice Power. We hope to provide this quarterly recap of all things energy occurring across Texas so you can stay informed on important events and developments that might interest you or impact your life in the Lone Star State.
Wiring The Wind
For a price tag of $7 billion, Competitive Renewable Energy Zones (CREZ) work (ironically) to reduce energy prices. The Energy Information Agency (EIA) reported in late June that the CREZ transmission project has reduced instances of curtailments and negative pricing. Curtailments occur when there’s too much electricity for the transmission lines to handle. Negative pricing occurs when local generators are willing to pay for the opportunity to continue generating electricity.
While CREZ does add dollars to Texan’s monthly electric bill, the project brings more reliability to the ERCOT grid, and this means LESS chance for line congestion — electric demand outstripping the capacity of the grid to send power to meet that demand. It also means that West Texas wind power can be transmitted from Amarillo eastwards to meet high demand for cooling in Dallas, Waco, and San Antonio. This keeps your Texas electricity prices lower.
On June 16, wind supplied over 7,000 MW of power. Spot power prices across ERCOT fell 48 cents, or 1 percent, to average $46.09 a megawatt-hour during the 1 p.m. to 2 p.m. trading period.While 7,000 MW was about 10%, it shows that wind power does reduce the wholesale price.
More Wind Farms Coming to Lubbock and Amarillo
CREZ has also fanned investment in more wind farms. Two major projects (about 200 MW capacity each) are in the works: one by Tri Global Energy in Crosby County northeast of Lubbock and the other by General Electric and the German company E.ON in Carson County just a few miles east of Amarillo. Tri Global Energy’s Crosby County Wind Farm will build the Pleasant Hill Wind Energy project, a 20 MW addition, that apart from power will bring in $6.0 million in landowner and community royalties as well as tax revenues to the county and school district. GE’s Grandview Phase I project near Amarillo will create about 250-300 construction jobs and 10-12 permanent positions.
More Natural Gas Powered Generation To Fire Up
Current natural gas prices make investment in natural gas generation more attractive for investment in Texas. These past few weeks have seen announcements for five new natural gas generation plants: three by Navasota Energy and two by FGE Power and Starwood Energy Group. Navasota Energy plans on building three identical 543-megawatt, natural gas-fired, peaking power plants. Peaking plants are called in to generate power to fill in peak demand. Of the three plants, one will be located in Grayson County near Dallas, and the other two in Guadalupe County and Wilson County, both outside of San Antonio.
The two plants by FGE Power and Starwood Energy Group are planned as two identical 747MW combined-cycle gas turbine (CCGT) facilities near the communities of Westbrook and Colorado City in Mitchell County, Texas. Combined-cycle gas turbines generate electricity first with a gas turbine and then the waste heat is used to make steam for a steam turbine. Both projects will come online in 2017 and will be capable of generating up to 3,000 MW of electricity.
Austin’s Smartest Homes
Time Magazine has called it, “America’s Smartest City“. Well, they weren’t talking about all of Austin. Instead they were talking about the energy smart homes in the Mueller neighborhood, a planned urban redevelopment on the grounds of Austin’s former municipal airport. Homes here have a yearly energy bill that totals about $600. Not too shabby at all. But it’s not just the extra insulation, distributed (rooftop) solar cells, electric vehicle use, and home energy management that’s making a big difference – it’s the usage data.
The Pecan Street Organization, a University of Texas-based research organization, tracks Mueller residents’ electricity usage at the “granular level.” Data is kept anonymous, but every milliwatt used is tracked in relation to time of day, weather patterns, and fluctuations in power price. Some of the results are surprising – for example, solar panels facing west catch the most sunlight and generate the most electricity during late afternoon when power usage for cooling is highest and most expensive. Pecan Street plans on bringing what it learns about energy efficiency and locally generated renewable energy to more Texas towns by expanding its operations.
Recycling is Finally in the Bag!
Back in November 2013, Ziploc announced that their bags were recyclable. But it seems to be taking a while to get people to recycle their waste polypropylene film – other wise known as plastic wrap. Fortunately, www.plasticfilmrecycling.org can tell you the convenient places (like Target and Walmart) in your part of Texas that accept clean and dry plastic baggies and wrapping.
What happens to recycled plastic baggies? They are turned into composite lumber that can be used for decks and fences, as well as energy efficient windows and doors. Yes, by recycling, you can have home energy efficiency in the bag!
Do you have any other big energy industry news from Texas to share? Please let us know in the comments!