The new load forecast in ERCOT creates significant investment opportunities for generation growth.
Credit is due to the Texas legislators for proactively working to solve for this increase in power demand, but many of the talking points throughout the day exhibited a scarcity mindset—as if the only way forward is a rationing of limited generation and transmission resources. At multiple points during the hearing, suggestions were made that certain end-uses should be prioritized over others when deciding which new loads deserve to be connected to a power grid that will struggle to keep pace.
The fight over scarce resources, however, misses the fact that innovators like Enchanted Rock have already developed strategies to provide safe, reliable, and resilient power to new loads despite the current backlogs and constraints for new energy infrastructure projects. We call it Bridge-to-Grid.
Bridge-to-Grid: A strategic solution
The Bridge-to-Grid strategy allows new loads to self-generate electricity until their permanent grid connection is available. In addition to bridging the power gap, Enchanted Rock’s dispatchable generation transitions to backup power and grid flexibility operations once the grid connection is established. The deployment of dispatchable generation as a multi-purpose microgrid for localized, customer-sited power has multiple benefits.
Decentralizing power generation will increase grid reliability and resilience, as the grid can better withstand disruptions. Localized generation also reduces the need for extensive transmission infrastructure and eases congestion on the system, avoiding cost increases for electric consumers across the state. Enchanted Rock’s rapid, scalable deployment of Bridge-to-Grid microgrid solutions adapts to business timelines much better than large-scale transmission and generation projects, ensuring timely support for their operations. These flexible, incremental additions to energy supply can help meet growing demands without the risk of overbuilding infrastructure and stranding investments. Additionally, new loads, with their generation capacity, can support the grid by balancing supply and demand locally, transforming potential grid liabilities into valuable grid assets.
The current view of the interconnection queue will need to quickly evolve to provide a balanced supply mix to serve the forecasted load growth.
Energy Policy Solutions to Support Texas’ Growth
Policies that promote sustainable growth in Texas without imposing massive costs on existing customers or deterring new ones need to take a holistic approach to system planning. Fixation on business-as-usual strategies to meet the challenges of tomorrow will push everyone into a scarcity mindset where each new load is seen as a liability. This can be avoided by incentivizing new loads to contribute positively to the grid. For example, speed is a major incentive for businesses like oil and gas operators that need to keep up with global demand or data centers that are scaling rapidly with advances in AI-driven operations.
Policymakers, in collaboration with the Public Utilities Commission of Texas (PUCT) and ERCOT, should consider streamlined permitting and interconnection for new loads that invest in solutions like Enchanted Rock’s Bridge-to-Grid. This approach ensures that new loads are not just additional burdens to the grid but valuable assets. Policies should prioritize first serving those who are committed to enhancing grid reliability, resiliency, and affordability. By implementing strategies like these, Texas can ensure that its grid infrastructure evolves to meet future energy demands effectively, sustaining economic growth and technological innovation.
This article was originally published on Joel Yu’s LinkedIn profile.
