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LCG Publishes 2025 Annual Outlook for Texas Electricity Market (ERCOT)

LCG, August 14, 2024 – LCG Consulting (LCG) has released its annual outlook of the ERCOT wholesale electricity market for 2025, highlighting the region's rapid transition toward increased reliance on renewable energy resources and battery storage.

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LCG Publishes 2025 Annual Outlook for Texas Electricity Market (ERCOT)

LCG, August 14, 2024 – LCG Consulting (LCG) has released its annual outlook of the ERCOT wholesale electricity market for 2025, highlighting the region's rapid transition toward increased reliance on renewable energy resources and battery storage.

Read more

Industry News

Sempra Moves to Expand Coal-fired Power Plant in Texas

LCG, July 21, 2005--Sempra Generation, a subsidiary of Sempra Energy, announced yesterday that it plans to add a 600-MW, coal-fired unit at its Twin Oaks Power Plant near Bremond, Texas. The new unit is estimated to cost $750 to $800 million. Construction is expected to begin in 2007, with the plant operational in 2011. Sempra submitted its air-permit application last week to the Texas Commission on Environmental Quality.

The existing, 305-MW plant was built in 1990 and is fueled by lignite coal from a local mine. The station design employs a fluidized-bed-combustion technology that uses staged combustion to reduce oxides of nitrogen (NOx) emissions and the injection of crushed limestone to reduce sulfur dioxide (SO2) emissions. Sempra purchased the station from Texas-New Mexico Power Company in 2002.

Plans for the new unit include advanced technologies to control emissions and the ability to use either Texas lignite coal or coal delivered by rail.

Sempra's move to add coal-fired capacity may mark a new direction for generation planning in Texas. With the considerable quantity of new, efficient, gas-fired electric generators installed in Texas over the past few years, a surplus of capacity has been created and older, less-efficient plants are heading towards retirement.

In January, Texas Genco LLC announced that it planned to retire nearly 3,800 MW of gas-fired generating units at six power plants in the vicinity of Houston. Of the generation to be retired, 2,567 MW of capacity had been previously mothballed. The units identified for closures are: P.H. Robinson, Cedar Bayou 3, T.H. Wharton 2, H.O. Clarke, Deepwater 7, and Webster. TXU also announced in January its plans to stop operating nine, 65-MW, gas-fired combustion turbines installed at Permian Basin and DeCordova Stations. Last November, TXU announced it planned to mothball the units located at Valley, North Lake and Morgan Creek stations and estimated total annual savings to be approximately $20 million.

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