MARKETS

Tons of power in Texas

THE Electric Reliability Council of Texas region has more than 42 gigawatts of generation capacity in development,t but with the likelihood of a forward capacity market on the decline, future projects hang in the balance

Sadie Davidson
Tons of power in Texas

SNL Energy reports an average of 3787 megawatts was installed annually between 2001 and 2010, but this declined to 1338MW in 2011-13.

Of the 42,289MW considered in development, just 7504MW are in advanced development or under construction.

Of the capacity in advanced development, 56% is predicted to move online by year’s end.

NRG Energy says it is holding back on three generation projects in the ERCOT region until the outcome of the capacity market discussion is finalised.

The company owns the largest share of planned capacity in ERCOT with 4136MW, all of which is in early development.

Nuclear reactors comprise of more than 50% of NRG’s planned capacity in ERCOT.

NRG owns more than 80% of the planned capacity of the South Texas Project in Matagorda County.

However, the company decided to stop contributing additional funding to the project in April 2011, citing regulatory risk as the cause.

Alternatively, Calpine is continuing development in the region, although it also supports a capacity market.

Calpine has 520MW of gas combined-cycle capacity under construction – expected to move online in April – located at the Channel and Deer Park Energy Centres in Harris County.

Coal-fired plants provided the region's second-largest operating capacity and net generation, with 19,382MW and almost 111.4 million megawatt hours, respectively, in 2012.

However, wind farms follow a close second to gas in planned capacity, with 16,728MW, or 39.56% of the total.

There is 2431MW of wind capacity under construction.

Capacity in earlier stages of development that did not qualify for the now expired production tax credit may be at greater risk of termination.

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