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Reuters
10-07-2025
- Business
- Reuters
Trump calls wind, solar bad for power grid. Texas shows otherwise
July 10, (Reuters) - President Donald Trump claims that rapid adoption of solar and wind power has made U.S. electricity unstable and expensive, justifying his bid to end most subsidies for renewable energy. But reliability has improved dramatically in the U.S. grid with the most renewable energy – in Texas - and electricity prices there are below the national average, according to regulatory filings and price data reviewed by Reuters. At the same time, some grids that rely primarily on fossil fuel generation have experienced reliability issues and surging prices. The Electric Reliability Council of Texas (ERCOT), the state's main grid operator, forecasts only a 0.30% chance of rolling blackouts during peak energy demand in August, according to its June 6 reliability assessment. That is a vast improvement from the 12% chance it predicted for August 2024. Electricity prices for Texas residential customers and businesses are about 10 cents per kilowatt hour, 24% below the national average, according to the latest monthly report by the U.S. Energy Information Administration. "ERCOT has done a good job of defining the products needed for energy and reliability," said Joshua Rhodes, a research scientist at the University of Texas in Austin. "It could be an example for other grids in how to create reliability at a low cost." The Texas grid's performance rebuts the assumptions driving Trump's sweeping tax-and-spending bill that Congress passed last week, which will end subsidies that boosted adoption of solar, wind and other clean energy technologies. U.S. Energy Secretary Chris Wright cheered the cuts in a social media post saying the bill "will help end wasteful subsidies and deliver more reliable energy for the American people!" On Monday Trump signed his latest executive order directing federal agencies to strengthen provisions in the One Big Beautiful Bill that repeal or modify tax credits for solar and wind projects. Trump called renewable energy unreliable and expensive. He said renewables displaced more dependable sources, relied on foreign-controlled supply chains and harmed the environment. Solar and wind power only work when the sun is shining or the wind is blowing. This intermittency can risk significant shortfalls during periods of high demand. Indeed, the Texas power grid has had major failures over the years, but not all were related to renewables. In February 2021, natural gas pipelines and well heads froze during a freak cold snap, interrupting supplies to gas-fired generators and causing blackouts that left millions in Texas without power for days. Texas has invested in large-scale battery storage facilities for surplus power from wind, solar or other generators. These release the power when it is needed, and they have helped to sharply reduce the chances of blackouts this year, according to ERCOT's resource adequacy reports reviewed by Reuters. Since summer 2024, ERCOT said it has added nearly 5 gigawatts of battery storage, lifting total capacity above 8 gigawatts. Another 174 gigawatts of storage await connection over the next five years, according to ERCOT. ERCOT declined to comment on Trump's assertions that renewables destabilize the grid. "Increasing capacity from solar and battery storage have been a winning combo for the Texas grid over the past two years," said Garrett Golding, an assistant vice president of energy programs at the Federal Reserve Bank of Dallas. "(It) can be a model for other states with similar climates, but I doubt it applies universally." The White House did not return a message seeking comment. Grids that depend on fossil fuels are not immune to reliability and price issues. The PJM Interconnection, the largest U.S. regional grid, relies heavily on fossil fuels and its electricity prices are soaring while reliability is falling. "The grid is a rusted old pickup truck and we're adding multiple pressures onto it," said Tom Bullock, executive director of The Citizens Utility Board of Ohio, a consumer watchdog group. In Ohio, a key market in PJM's territory, state regulators expect electricity prices to increase more than 20% this year. Last year, natural gas and coal plants accounted for nearly 60% of PJM's electricity generation output. Wind and solar were about 6%, according to PJM. Bullock and other consumer advocates said Trump's rejection of renewables could exacerbate electricity price inflation instead of controlling it, particularly as power demand escalates from data centers and electric vehicles. A U.S. Department of Energy analysis issued this week estimated substantial electricity blackouts in PJM's territory in the next five years, absent a massive amount of new generation. In a worst-case scenario, PJM could have more than 1,000 annual hours when electricity production does not meet demand, the DOE report said. PJM declined to comment on the DOE report. ERCOT's total was just 149 hours in the DOE's worst-case analysis. 'The report recognizes that ERCOT has improved in addressing grid vulnerabilities,' DOE spokesperson Ben Dietderich said. Frank Rambo, executive director of Horizon Climate Initiative, a non-profit that supports cutting fossil fuel generation, said he fears Trump's policies will upend years of planning by utilities, grid operators and state commissions seeking to add renewable energy sources. "It's got destabilization written all over it," Rambo said.
Zawya
10-07-2025
- Business
- Zawya
Trump calls wind, solar bad for power grid. Texas shows otherwise
President Donald Trump claims that rapid adoption of solar and wind power has made U.S. electricity unstable and expensive, justifying his bid to end most subsidies for renewable energy. But reliability has improved dramatically in the U.S. grid with the most renewable energy – in Texas - and electricity prices there are below the national average, according to regulatory filings and price data reviewed by Reuters. At the same time, some grids that rely primarily on fossil fuel generation have experienced reliability issues and surging prices. The Electric Reliability Council of Texas (ERCOT), the state's main grid operator, forecasts only a 0.30% chance of rolling blackouts during peak energy demand in August, according to its June 6 reliability assessment. That is a vast improvement from the 12% chance it predicted for August 2024. Electricity prices for Texas residential customers and businesses are about 10 cents per kilowatt hour, 24% below the national average, according to the latest monthly report by the U.S. Energy Information Administration. "ERCOT has done a good job of defining the products needed for energy and reliability," said Joshua Rhodes, a research scientist at the University of Texas in Austin. "It could be an example for other grids in how to create reliability at a low cost." The Texas grid's performance rebuts the assumptions driving Trump's sweeping tax-and-spending bill that Congress passed last week, which will end subsidies that boosted adoption of solar, wind and other clean energy technologies. U.S. Energy Secretary Chris Wright cheered the cuts in a social media post saying the bill "will help end wasteful subsidies and deliver more reliable energy for the American people!" On Monday Trump signed his latest executive order directing federal agencies to strengthen provisions in the One Big Beautiful Bill that repeal or modify tax credits for solar and wind projects. Trump called renewable energy unreliable and expensive. He said renewables displaced more dependable sources, relied on foreign-controlled supply chains and harmed the environment. Solar and wind power only work when the sun is shining or the wind is blowing. This intermittency can risk significant shortfalls during periods of high demand. Indeed, the Texas power grid has had major failures over the years, but not all were related to renewables. In February 2021, natural gas pipelines and well heads froze during a freak cold snap, interrupting supplies to gas-fired generators and causing blackouts that left millions in Texas without power for days. Texas has invested in large-scale battery storage facilities for surplus power from wind, solar or other generators. These release the power when it is needed, and they have helped to sharply reduce the chances of blackouts this year, according to ERCOT's resource adequacy reports reviewed by Reuters. Since summer 2024, ERCOT said it has added nearly 5 gigawatts of battery storage, lifting total capacity above 8 gigawatts. Another 174 gigawatts of storage await connection over the next five years, according to ERCOT. ERCOT declined to comment on Trump's assertions that renewables destabilize the grid. "Increasing capacity from solar and battery storage have been a winning combo for the Texas grid over the past two years," said Garrett Golding, an assistant vice president of energy programs at the Federal Reserve Bank of Dallas. "(It) can be a model for other states with similar climates, but I doubt it applies universally." The White House did not return a message seeking comment. BETTER THAN OTHERS Grids that depend on fossil fuels are not immune to reliability and price issues. The PJM Interconnection, the largest U.S. regional grid, relies heavily on fossil fuels and its electricity prices are soaring while reliability is falling. "The grid is a rusted old pickup truck and we're adding multiple pressures onto it," said Tom Bullock, executive director of The Citizens Utility Board of Ohio, a consumer watchdog group. In Ohio, a key market in PJM's territory, state regulators expect electricity prices to increase more than 20% this year. Last year, natural gas and coal plants accounted for nearly 60% of PJM's electricity generation output. Wind and solar were about 6%, according to PJM. Bullock and other consumer advocates said Trump's rejection of renewables could exacerbate electricity price inflation instead of controlling it, particularly as power demand escalates from data centers and electric vehicles. A U.S. Department of Energy analysis issued this week estimated substantial electricity blackouts in PJM's territory in the next five years, absent a massive amount of new generation. In a worst-case scenario, PJM could have more than 1,000 annual hours when electricity production does not meet demand, the DOE report said. PJM declined to comment on the DOE report. ERCOT's total was just 149 hours in the DOE's worst-case analysis. 'The report recognizes that ERCOT has improved in addressing grid vulnerabilities,' DOE spokesperson Ben Dietderich said. Frank Rambo, executive director of Horizon Climate Initiative, a non-profit that supports cutting fossil fuel generation, said he fears Trump's policies will upend years of planning by utilities, grid operators and state commissions seeking to add renewable energy sources. "It's got destabilization written all over it," Rambo said.
Yahoo
09-07-2025
- Business
- Yahoo
Lydian Energy Secures $233M in Project Financing to Advance Battery Storage Projects Across Texas
ING and KeyBank provide Lydian's first institutional financing for Pintail, Crane, and Headcamp BESS projects under Excelsior Energy Capital's Fund II WASHINGTON & HOUSTON, July 09, 2025--(BUSINESS WIRE)--Lydian Energy, an independent power producer specializing in the development, construction, and operation of utility-scale solar and battery energy storage projects across North America, today announced the successful financial close of its first institutional project financing totaling $233 million. The financing, backed by ING and KeyBank, supports three battery energy storage system (BESS) projects in Texas' fast-growing ERCOT power market. ING served as the lender for the Pintail and Crane projects, located in San Patricio and Crane Counties, Texas, respectively. The two systems, each sized at 200 MW/400 MWh, represent a combined investment of approximately $139 million. KeyBank provided a $94 million financing package for Headcamp, a 150 MW/300 MWh project in Pecos County. KeyBanc Capital Markets also structured the financing package for Headcamp. All three projects are developed under Excelsior Energy Capital's Fund II, which recently closed at more than $1 billion, and advance Lydian's strategy to deliver reliable, affordable renewable energy that strengthens grid performance in key power markets, such as Texas. The facilities are currently under construction and expected to be placed in service in Q4 2025. "This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve," said Emre Ersenkal, CEO at Lydian Energy. "We are happy to have the support of ING and KeyBank, which recognize both the value of battery storage in today's grid and the capabilities of our development and delivery platform. We are proud to partner with these leading financial institutions to help deliver the next generation of clean and reliable power in Texas," said Basilio Guerrero, CFO at Lydian Energy. The commitments of ING and KeyBank underscore growing institutional confidence in battery storage as a strategic asset class leading the energy transition. "Our support of Lydian's portfolio reflects ING's focus on identifying strategic funding opportunities that align with the accelerating demand for sustainable power," said Sven Wellock, Managing Director and Head of Energy – Renewables & Power at ING. "Battery storage plays a central role in supporting grid resilience, and we're pleased to back a platform with strong fundamentals and a clear execution path." "Lydian Energy's development of Headcamp reflects the type of forward-looking energy infrastructure we aim to support through strategic financing," said Tyler Nielsen, Managing Director, Utilities Power and Renewables Group at KeyBanc Capital Markets. "Our team is thrilled to support Excelsior Energy Capital as they continue to deliver strategic, future-ready investments and projects that are increasingly vital as energy demand and system complexity continue to rise." The tax credit bridge financings from ING and KeyBank are being complemented by co-investment capital from Excelsior's Fund II limited partners. Lydian is actively pursuing additional financing for a broader pipeline of projects expected to start construction later this year. "These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth U.S. markets," said Anne Marie Denman, Co-Founding Partner at Excelsior Energy Capital and Chair of the Board at Lydian Energy. "We're proud to stand behind Lydian's talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic, and affordable energy." Lydian's current portfolio includes 20 solar and storage projects totaling 4.7 GW of capacity. The company continues to work alongside banking, regulatory, and community stakeholders to deliver scalable infrastructure aligned with regional needs and policy objectives. About Lydian Energy Lydian Energy, based in Washington, D.C., is an independent power producer specializing in the development, construction, and operation of utility-scale solar and battery energy storage projects. With the backing of Excelsior Energy Capital, Lydian's experienced team of renewable energy professionals focuses on developing high-potential mid- to late-stage renewable energy assets across North America. For more information, please visit Follow Lydian Energy on LinkedIn. About Excelsior Energy Capital Excelsior Energy Capital is a renewable energy infrastructure fund focused on middle-market investments in wind, solar and battery storage plants, and businesses across North America. The highly specialized team brings over 100 years of combined experience and a comprehensive set of strategic, financial, legal and operational expertise; making Excelsior Energy Capital a valuable partner for developers and operators, and a trusted manager for investors. Based in Minneapolis, Minnesota, the firm was founded in 2017 with two active funds totaling over $1.5 billion of equity capital. For more information, visit View source version on Contacts Media Contact Adam Redlingaredling@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
30-06-2025
- Climate
- Associated Press
Weathering the Storm: Defining Extreme Weather With Our NRG Load Forecasting Team
Originally published o NRG Energy Insights From potential power loss to property damage, extreme weather events can often stir up a lot of challenges and cause feelings of concern, stress, and uncertainty. However, despite its seemingly unpredictable nature, our teams work year-round to prepare for all kinds of severe climate – with the ultimate goal of protecting and supporting our customers. In this series, we will provide a comprehensive look at NRG's extreme weather strategy, kicking things off with an introductory breakdown from Jon deJong, Manager, Load Analytics & Meteorologist. Jon, what is load forecasting? In its simplest sense, load forecasting is used to predict how much electricity and natural gas gets used based on different types of weather and customer characteristics. This can be for an entire region, like ERCOT, or for a group of customers, like our residential customers in Houston. We use historical data to help predict what the future may look like. This is important because what we do supports system reliability and helps ensure that NRG's supply meets the demands of our customers through typical and extreme weather conditions. How do we define an extreme weather event? NRG services customers across the U.S. and Canada, so we understand our customers are exposed to unique weather patterns, transmission systems, and structural differences specific to their respective regions. In other words, what constitutes as an extreme weather event in one location, may not have the same impact in a different location. During Winter Storm Uri in 2021, the extremely cold temperatures across Texas may not have been seen as significant compared to the winter weather typically seen in colder regions. However, the bitter cold and wintry precipitation that Texas received impacted generation, natural gas, and transmission facilities, resulting in an unprecedented disruption of electric service. The load forecasting team is constantly monitoring weather patterns and paying close attention to situations that show signs of impacting a large geographical area over a long period of time with difficult conditions. Heat waves or winter storms that affect multiple cities over the course of several days are a good example of this. There are exceptions (like hurricanes, which tend to severely affect a small area over a short window), but, in general, these events place prolonged strain on the grid, making them particularly important to watch. How does extreme weather impact energy systems? Each region is structurally prepared for the type of extreme weather they typically face. Plants in northern regions, for example, are built to withstand extremely low temperatures. These guidelines have been set in place by regulators and influenced by past events. While there is still a chance that a weather event can have an unprecedented effect, NRG works hard to ensure our facilities abide by standards that help us deliver reliable power to our customers. It's important to note that the impact of severe weather, though, is not limited to NRG and our domain. When rough weather blows into town, it can also affect pipelines, meters, power lines, and other types of transmission and distribution infrastructure, disrupting the energy system's ability to deliver power to customers. While suppliers, like NRG, do not have an active role in preparing these areas of the energy system for extreme weather, we coordinate with grid operators to make sure they have information about our facilities so that they get an accurate picture of how the overall grid is holding up. In short, our load forecasting team is continuously watching weather, monitoring demand patterns, and working with our colleagues at the plants to help them deliver reliable power to the grid. Especially, as extreme weather is becoming an increasingly frequent phenomena and energy demand continues to grow, understanding severe climate events is crucial. Along with load forecasting, NRG takes proactive efforts to assess risks and develop strategies to mitigate the impacts of weather events. In our next installment of Weathering the Storm, we will explore the innovative approaches our teams are implementing to ensure the reliability of energy supply in the face of an unpredictable climate. Stay tuned! Visit 3BL Media to see more multimedia and stories from NRG Energy
Yahoo
29-06-2025
- Business
- Yahoo
Summer Surge: AI Data Centers And Soaring Heat Test Texas Power Grid
Texas is poised to set a new record for peak energy demand this summer, driven by scorching temperatures and surging needs from new data centers and air conditioning use. The Electric Reliability Council of Texas (ERCOT), the state's power grid operator, projects a peak demand of 87,500 megawatts, surpassing the August 2023 record of 85,464 megawatts and significantly higher than the 74,650 megawatts in 2021. The increase is fueled, in part, by data centers powering AI and cloud storage, which is expected to grow from 2,400 megawatts next year to over 22,000 megawatts by 2030. Rising cryptocurrency production is also contributing to the demand for electricity, although it is expected to account for only a third of the demand for data centers within five years. Despite the strain, ERCOT anticipates the grid will meet demand, bolstered by increased solar production and battery storage capacity. However, emergency alerts are most likely in August after 9 p.m., when solar output declines. 'It has become statistically challenging to record a hotter-than-normal summer,' ERCOT forecaster Chris Coleman wrote, per Axios Dallas. He noted that six of Texas' 10 hottest summers have occurred in the last decade. Last summer ranked as the seventh-hottest on record, despite above-average rainfall. ERCOT expects energy use to continue rising over the next five years as Texas' population grows and summers intensify, pushing the grid to adapt to unprecedented demand.
