Addressing Texas grid reliability: Time to go nuclear?

Without additional dispatchable power generation, traditionally from fossil fuels, Texas is vulnerable to power outages during peak demand periods if solar and wind power sources fall short. Thirty years after Texas’ last nuclear plant opened, new nuclear generation could provide needed power without planet-warming greenhouse gas emissions.

By Texas summer standards, the heat in August 2023 seemed relentless but not without precedent. A string of 100-plus-degree days gripped the state, and the sound of air conditioning was constant.

The overseer of much of the state’s electricity grid, the Electric Reliability Council of Texas (ERCOT), issued eight conservation appeals during the month, encouraging retail electricity customers to reduce use of air conditioning and large appliances. Some days it was barely enough. Output from solar and wind facilities was low while thermal energy sources (natural gas, coal and nuclear) struggled to keep up with record-setting electricity demand, or load.

As the energy capital of the nation kept a wary eye on power reserves, ERCOT officials warned they might need to resort to rolling blackouts to keep the system from breaking.

In recent years, low-cost renewable energy sources such as wind and solar have flourished. However, when the wind doesn’t blow or the sun doesn’t shine, and there are inadequate thermal resources to fill the gap, the grid can become vulnerable.

An expanding economy and population, a growing footprint of manufacturing facilities and data centers and more frequent episodes of extreme heat and cold have contributed to Texas electricity consumption rising at an annual rate exceeding the national average.

Nuclear power advocates say that at a time of increasing use of renewables and heightened concerns over climate change, nuclear should become a more readily available part of the mix. Nuclear is reliable, energy dense and scalable. It also has zero carbon emissions. Comanche Peak Nuclear Power Plant No. 2 in Glen Rose, Texas, 85 miles southwest of Dallas, began operations in 1993. Since then, no other nuclear power plant has opened in the state.

To read the full story visit https://www.dallasfed.org/research/swe/2024/swe2407