Umair Gaines
Texas is unique in that it has its own power grid, known as the Texas Interconnection, which is managed by the Electric Reliability Council of Texas (ERCOT). ERCOT is a non-profit organisation that manages the flow of electricity to 26 million customers, which is about 90% of the state's electric load. The Texas Interconnection is one of three minor power grids in the North American power transmission grid, and it is kept separate from the other two for political reasons.
| Characteristics | Values |
|---|---|
| Name of the electrical grid | Texas Interconnection |
| Type of current | Alternating current (AC) |
| Type of grid | Wide area synchronous grid |
| Area covered | Most of Texas |
| Management | Electric Reliability Council of Texas (ERCOT) |
| Number of customers | 26 million |
| Percentage of state's electric load | 90% |
| Miles of transmission lines | 46,500 |
| Number of generation units | 550+ |
| Peak demand (2020) | 76,696 MW |
| Wind output record | 19.7 GW |
| Number of wind farms | 40+ |
| Total nameplate capacity of wind farms | 30,000 MW |
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What You'll Learn
Texas Interconnection
Texas has its own electric grid, known as the Texas Interconnection. It is an alternating current (AC) power grid, or a wide-area synchronous grid, that covers most of the state. The grid is managed by the Electric Reliability Council of Texas (ERCOT), which was created in 1970 and is responsible for overseeing the reliable transmission of electricity to the power grid serving about 26 million Texans, or 90% of the state's electric load.
The Texas Interconnection is one of three minor grids in the North American power transmission grid. The other two minor interconnections are the Quebec Interconnection and the Alaska Interconnection. The two major interconnections are the Eastern Interconnection and the Western Interconnection.
The Texas Interconnection is maintained as a separate grid for political, rather than technical, reasons. By not crossing state lines, the synchronous power grid is not subject to federal regulation by the Federal Energy Regulatory Commission (FERC). All of the electric utilities in the Texas Interconnection are electrically tied together during normal system conditions and operate at a synchronous frequency.
The Texas Interconnection is tied to the Eastern Interconnection with a 220 MW DC tie near Oklaunion and a 600 MW DC tie near Monticello. It is also tied to NERC (North American Electric Reliability Corporation) systems in Mexico with a 300 MW DC tie near McAllen and a 100 MW VFT tie near Laredo.
In July 2025, a bill was introduced that would permit ERCOT to interconnect with power grids outside of its historically isolated region. If passed, the bill would mean that by the late 2020s, electricity could flow into Texas from other regions during winter freezes, summer heat waves, or other emergencies, helping to alleviate blackouts. The bill would also likely improve grid reliability, especially during weather emergencies, as utilities would gain access to external backup supply.
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Electric Reliability Council of Texas (ERCOT)
The Electric Reliability Council of Texas (ERCOT) is an independent system operator responsible for managing the Texas power grid. It was formed in 1970 to comply with North American Electric Reliability Council (NERC) requirements.
ERCOT manages the flow of electricity to 90% of the state, serving over 26 million Texans. It ensures a reliable supply of electricity by managing electric delivery and payments, scheduling and dispatching electricity, and coordinating power stations and electric utility companies (TDUs).
The organisation also oversees the wholesale electricity market, administering the processes for buying and selling electricity between power generators and retail providers. ERCOT plans for the long-term expansion of the transmission system to ensure the reliability of the power grid.
ERCOT operates as a membership-based nonprofit organisation, overseen by Texas lawmakers and a board of directors. The board is responsible for setting policies and making decisions on behalf of ERCOT, including the integration of renewable energy sources.
Power demand in the ERCOT region is typically highest during the summer, primarily due to air conditioning use. In February 2021, ERCOT declared a statewide emergency due to a shortfall in generation that caused widespread blackouts, affecting approximately 4 million customers.
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Power outages
Texas is on the ERCOT (Electric Reliability Council of Texas) grid. ERCOT offers a range of tools to help you understand the current conditions of the grid, including dashboards that display the current ERCOT grid and market conditions.
- Keep a fully stocked emergency kit: This should include a flashlight with extra batteries, a first aid kit, non-perishable food, and a manual can opener.
- Have alternative charging methods: Invest in portable chargers and power banks to charge essential devices like phones and laptops.
- Backup power: Consider purchasing a generator or solar panels to provide backup power during outages.
- Stay informed: Sign up for outage alerts and notifications from your power company, and follow them on social media for real-time updates.
- Plan for medical needs: If you rely on medical devices that require electricity, work with your healthcare provider to develop a backup plan, such as having a portable battery or knowing the location of the nearest facility that can provide temporary power.
During a power outage, remember to unplug sensitive electronics to protect them from power surges when the electricity comes back on. Also, keep your refrigerator and freezer doors closed as much as possible to maintain the cold temperature and prevent food spoilage. Finally, be a good neighbour and check on elderly or disabled people living nearby to ensure they are safe and offer any assistance they may need.
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Energy market
Texas' energy market is unique in the United States for two main reasons: it has its own electric grid, and it's deregulated. The Electric Reliability Council of Texas (ERCOT) is the state's energy grid and functions independently from other U.S. grids, meaning it is not subject to federal regulations.
The deregulated energy market in Texas means that consumers have a choice of which supplier they get their power from, encouraging competition and potentially better deals. This market structure came about in two parts: the wholesale generation market was deregulated in 1995, followed by the retail market in 1999. As a result, there is now wholesale and retail competition, with multiple competing retailers operating in the state.
The combination of ERCOT and the deregulated market also makes it relatively easy for anyone to connect to the grid and supply power. This has led to a diverse range of energy sources in Texas. While most of the state's electricity is produced by natural gas-fired power plants, Texas is also the leading producer of wind power in the U.S. and the second-largest producer of solar power. This is largely due to the geography of West Texas, which is windy and sparsely populated, making it ideal for wind farms.
The Texas energy sector is evolving rapidly, with the integration of cryptocurrency mining and the growth of data centers contributing to the state's burgeoning energy demand. ERCOT plays a crucial role in forecasting demand to ensure there are no disruptions or shortages in the electric supply. However, with the increasing energy requirements of new technologies and business growth, accurate forecasting is becoming more challenging.
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Grid independence
Texas is the only state in the continental US with its own electrical grid, known as the Texas Interconnection. This grid is managed by the Electric Reliability Council of Texas (ERCOT), which operates at a synchronous frequency of 60 Hz and supplies power to 26 million customers, or 90% of the state's electric load.
The Texas Interconnection is maintained as a separate grid for political reasons, but it can draw some power from other grids using direct current (DC) ties. The grid is tied to the Eastern Interconnection with two DC ties, and to the North American Electric Reliability Corporation (NERC) systems in Mexico with two DC ties.
The independence of the Texas grid allows many Texans to choose from different electricity providers in specific deregulated markets. However, this also means that during emergencies, such as severe weather events, the state must rely solely on its own resources. For example, during a winter storm in 2021, ERCOT was unable to meet soaring electricity demand, leaving 4.5 million Texans without power for days.
To address these vulnerabilities, efforts have been made to improve the grid's reliability and resilience. For instance, the Southern Spirit Transmission Project is a proposed 320-mile, 525-kV high-voltage direct current line that would connect the ERCOT grid with grids in the Southeast, providing three gigawatts of bidirectional capacity. Additionally, Texas has abundant solar and wind energy potential, particularly in the western portion of the state, which could help the state maintain its energy independence over the long term.
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Frequently asked questions
Texas is the only state in the continental US with its own electrical grid, known as the Texas Interconnection.
Texas has its own grid to avoid federal regulation. The state has substantial energy resources and a large size, which makes an independent power grid viable.
The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power on the Texas Interconnection. ERCOT is a membership-based nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas (PUCT) and the Texas Legislature.
Power generators compete to sell electricity in a wholesale market, where prices are determined by supply and demand. Retail electricity providers (REP) purchase energy in bulk and then resell it to homes and businesses. ERCOT schedules and dispatches electricity on a daily basis, coordinating power stations and electric utility companies (TDUs) in the state.
