% EV-related> If TX allowed direct Tesla EV sales, more 90kWh EV packs could
soak up the excess grid energy %

http://www.wallstreetdaily.com/2015/09/29/texas-negative-energy-prices/
Want Free Electricity? Move to Texas
Sep 29, 2015 | Samantha Solomon

[image  
http://www.wallstreetdaily.com/wp-content/uploads/2015/09/09-29-texas-negative-energy-prices.jpg
(TX wind turbines)
]

The impossible happened on September 20. In the middle of the night, the
spot price of electricity in Texas fell below zero and hit -$8.52 per
megawatt hour at its lowest point.

The price hovered around zero or less until around 8:15 AM when people
started waking up and using power to make their morning coffee and check the
news.

Why would providers in a state in love with the free market sell a product
for no cost? Well, it’s partially due to Texas’ large installed wind
capacity – 12,625 megawatts, to be exact.

Surprising, I know, but this oil-rich state got 9% of its electricity from
wind power in 2014. Of course, you can’t control when the wind blows. That’s
one of the power source’s downfalls and why storage is so necessary.

Last week, the wind was strong in the middle of the night, when power demand
was at its lowest. All other energy producers curbed their production and
unchecked wind power dominated the energy mix.

No One’s Like Texas
Now, Texas also has an unusual energy market structure. Of the 48
continental states, Texas is the only “electricity island.”

You see, most states are part of large regional networks, meaning energy is
shared across state lines. But Texas’ grid is self-contained. This means it
isn’t affected by blackouts in neighboring states, but also that is has to
use all the electricity it produces.

The grid is run by the Electric Reliability Council of Texas (ERCOT), which
has set up a complicated continuous auction system.

As reported by Slate, “Every five minutes, power generators in the state
electronically bid into ERCOT’s real-time market, offering to provide chunks
of energy at particular prices. ERCOT fills the open needs by selecting the
bids that are cheapest and that make the most sense from a grid-management
perspective… Every 15 minutes, the bids settle at the highest price paid for
electricity accepted in the round.”

This combination of factors – large amounts of wind power, an electricity
island, and continuous bidding – led to the negative price. Demand was low,
the wind was blowing, and providers could only sell to ERCOT.

On top of that, wind power producers automatically get federal subsidies for
every kilowatt produced. So, they had every incentive to sell for as low as
possible.

Seems like Texas needs to get some electricity storage. And maybe Texans
need to start waking up in the middle of the night to do their laundry, run
their dishwashers, and watch TV.
[© 2015 Wall Street Daily]



https://en.wikipedia.org/wiki/Tesla_Motors#Business_model_and_US_automotive_dealership_disputes
Texas currently has stringent dealership protection laws which make
purchasing a vehicle from Tesla Motors in person, at a Tesla Gallery,
difficult. Thus, all Texas orders are taken via the internet or over the
phone. Texas requires all new cars to be purchased through third-party
dealerships, effectively blocking Tesla from selling cars directly. A
resident of Texas may still easily purchase a vehicle from Tesla Motors, but
purchasing the vehicle is handled as an out-of-state transaction ...




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