Texas Heat Wave Spurs Electricity Demand, Power Prices Spike 1600%

Published: May 20, 2024 09:06

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【Texas' Continued High Temperature Raises Electricity Demand and Power Prices Jump 1600% Overnight】Affected by the continuous high temperature, the electricity demand in Texas, the United States, has continued to rise, pushing up the spot market price of electricity. Late on the 17th local time, the electricity price on the website of the Electric Reliability Council of Texas (ERCOT) soared to US$688 per megawatt-hour, an increase of 1600% compared to the previous day. According to this electricity supplier, the electricity demand next week will break the record set in May 2022. Reports say that Texas has its own independent power grid, and the actual electricity price paid by consumers depends on the type of contract they sign with the supplier. Many electricity suppliers link the electricity price to demand, and the price rises sharply when electricity consumption surges during extreme weather. In addition to weather factors, Texas has many computing-intensive industries such as data centers and Bitcoin mining, which further increase the demand for electricity.

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