An article in the NY Times recently posted how Texas is providing free electricity for all its citizens after 9pm thanks to its abundant wind power. It’s generating so much electricity at night, it doesn’t even know what to do with it so they’re giving it away!
Not only that, but they’re slightly increasing the prices during the day, in an effort to have people consume more at night, when prices are at their lowest.
Here’s an excerpt from the NY Times:
“It is possible because Texas has more wind power than any other state, accounting for roughly 10 percent of the state’s generation. Alone among the 48 contiguous states, Texas runs its own electricity grid that barely connects to the rest of the country, so the abundance of nightly wind power generated here must be consumed here.
Wind blows most strongly at night and the power it produces is inexpensive because of its abundance and federal tax breaks. A shift of power use away from the peak daytime periods means lower wholesale prices, and the possibility of avoiding the costly option of building more power plants.”
Since Texas is a deregulated market for electricity, a lot of retail competition exists to capture as many customers as possible, keeping the prices really competitive in the process. This model greatly benefits the citizens of the State by encouraging fair pricing.
Texas is the state that produces the most wind power in the US and according to the American Wind Energy Association, it accounts for over 17,000 jobs, over $26 billion in capital investments and 46 manufacturing facilities.