ERCOT's $1,300/MWh Wind-Fall Tax

ERCOT hits $1,321/MWh as wind output collapses

November 13, 2024 • Est. Reading Time: 2 minutes

Mobius Intel Brief:

ERCOT’s real-time wholesale power prices hit an 82-day high of $1,321/MWh this week as Texas’ version of calm ‘Dunkelflaute’ conditions held wind generation >90% below its trailing 1-month median for 19 consecutive hours between Nov. 10 and 11.

  • Key Intel: Excluding transmission, ERCOT’s Nov. 10 peak hourly wholesale price of $1,321/MWh is approximately 114x the cost to generate 1 MWh with a 11,000 Btu gas peaker unit and yesterday’s HSC cash — illustrating the ‘Wind-Fall Tax’ of renewable intermittency on consumers.

  • ERCOT’s real-time wholesale power prices averaged over $540/MWh between 6pm and 10pm on November 10. Prices jumped as wind generation fell from over 19,200 MWh at 11am on November 8 to just 531 MWh at 11am on November 11 (-97.2%).

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