Despite Cold, ERCOT Prices Remain Low
Unusually cold weather normally portends higher electricity prices driven by increased demand, yet yesterday Real-Time prices came in below where traders in the Day-Ahead market predicted they would be.
During the morning ramp, the Day-Ahead price peaked above $160/MWh, yet the Real-Time price didn't even reach $100/MWh.
The delta continued through midday. When the Day-Ahead price was just above $34/MWh, the Real-Time price went negative!
What happened?
In the morning, it appears batteries made a material difference. They collectively discharged more than 4 GW - or about 5% of total supply.
Then, in the afternoon, solar performed well despite the cold, peaking at 20 GWs or 31% of total supply. This sent prices down even though demand levels were high.
In contrast to previous winters, it seems batteries and renewables now play a pivotal role in keeping ERCOT prices low during unusually cold weather.
