FactSet Blog ERCOT Lurches Towards Crisis

The call on U.S. electricity is becoming more acute as the need to power data centers grows. To supply that electricity, however, a significant buildout of energy infrastructure will be required. Unfortunately, the supply side of the equation is facing strong headwinds. No ISO illustrates this more than ERCOT, as its recent load forecast is calling for peak demand to almost double by 2030, attempts to aid natural gas-fired power plant construction are off to a stuttering start, and tariffs and multiple Texas state bills are looking to handicap the economics of renewable generation. With this in mind, today we'll look at ERCOT's most recent load outlook and lay out a simple case as to why Texas is headed towards energy scarcity and an increasingly unstable electrical grid.