(Bloomberg) -- Wind generation in Texas is soaring as a winter storm whips the state, adding an unexpected surge of electric supply as the bitter cold drives up demand on the state's power grid.
Wind farms were producing about 17.5 gigawatts at 9:55 a.m. local time, 85% higher than the day-ahead forecast, according to the Electric Reliability Council of Texas, or Ercot as the grid operator is known. Wind is accounting for about 30% of the grid's electricity supply. A gigawatt is enough to power about 200,000 Texas homes.
Most power being used Thursday was contracted the previous day, so the stronger wind generation is helping squash prices. Spot power is hovering at about $30 per megawatt-hour, less than half the cost of supplies secured in the day-ahead market, according to Ercot's website.
Frozen Wind Farms Just a Small Piece of Texas's Power Woes
For Friday, when Ercot demand may test the summer 2019 record, prices at the North Hub, which includes Dallas, recently traded at $275 per megawatt-hour on the Intercontinental Exchange. That's down from the prior day's close of $500 and $800 at the start of the week, according to a trader and ICE data.
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