Texas law gives grid operator power to disconnect data centers during crisis
6 days ago
- #Data centers
- #Texas energy policy
- #Grid reliability
- Texas Governor Greg Abbott signed Senate Bill 6, mandating data centers and large non-critical power consumers to accept curtailment during firm load shed events.
- The bill introduces a voluntary demand response program for loads of 75 MW or more, allowing them to ramp down or switch to backup generation upon request.
- New interconnection rules include disclosure requirements, cost-sharing, mandatory study fees, and protocols for colocating large loads with existing generators.
- ERCOT forecasts 138 GW of large loads by 2030, up from 87 GW, raising concerns about grid reliability, especially during maintenance periods.
- Aurora Energy Research suggests data centers could provide significant load flexibility, with up to 50% of 35 GW capacity offering emergency reliability support by 2030.
- The law establishes two demand management programs (mandatory and voluntary) to ensure large loads support grid reliability rather than strain it.
- The mandatory program requires eligible loads (75 MW+) to install shutoff equipment and allows utilities to disconnect them during load shed events.
- The voluntary program includes a 24-hour notice period and excludes participants in other reliability services or those responding to wholesale electricity prices.
- Provisions like a $100,000 minimum interconnection fee and disclosure of duplicate requests aim to mitigate 'phantom loads' and improve grid forecasts.
- Experts suggest 80-90% of proposed U.S. data centers may never be built due to duplicate interconnection requests in different utility territories.
- The law’s principles could be adapted by other states, such as those in PJM Interconnection, to manage large load interconnections and demand response.