Texas Daily Power Demand Sets Record for May Consumption – Reuters

Texas has experienced a surge in daily power consumption, setting a record for the month of May for the sixth time this month, according to the state grid operator. This spike is attributed to the increased use of air conditioners as a heat wave affects homes and businesses.

The Electric Reliability Council of Texas (ERCOT), responsible for managing most of the state’s power grid serving 27 million customers, reported that demand reached a preliminary 77,126 megawatts (MW) on Monday. This figure surpassed the previous May record of 74,997 MW, which was established earlier the same day.

Analysts predict that electricity usage could reach an all-time high this summer, driven by economic and population growth in the state, alongside rising energy needs from data centers, artificial intelligence applications, and cryptocurrency mining. The highest demand ever recorded on the grid was 85,508 MW on August 10, 2023.

ERCOT indicated on Friday that the system is functioning normally, with sufficient supply forecasted to meet the expected demand throughout the week.

This increased demand has led to a rise in electricity prices, with day-ahead power costs soaring to $1,518 per megawatt-hour (MWh) for one hour on Sunday evening, compared to $42.19 per MWh during the same hour on Saturday.

The daily power demand first broke the May record on May 20, when it hit 72,261 MW, surpassing the previous record for May of 71,645 MW set in 2022.

In Houston, the state’s largest city, temperatures are forecasted to hit 93 degrees Fahrenheit (34 degrees Celsius) on Sunday and rise to 99 F (37 C) by Memorial Day. The average high this time of year in Houston typically hovers around 88 F (31 C).

For context, one megawatt can typically supply power to about 800 homes on a regular day, but that number can decrease to as few as 250 homes during a hot summer day in Texas.