it’s basically about the cost of the fuel.
Why Are Coal Plants Closing All Over Texas?
A coal plant based in Vernon, Texas announced that it will shut down operations in 2020. It’s the fifth plant that has closed or announced its closure this year. The 700-megawatt plant stated that the reason behind its decision to close was due to its inability to compete in the energy market. This follows a nationwide trend of coal-fired power plants shutting down across the nation.
Will It Affect Reliability in ERCOT?
With a trend of coal power closures, some may worry about whether or not the Electric Reliability Council of Texas (ERCOT) will be able to keep up with energy demands. These five coal plants made up 22 percent of the state’s coal capacity, after all. However, the reason for these closures has more to do with profitability as cheaper options become available. As the market shifts, so too does the reliance on coal for power.
Are Tax Break for Renewable Energy Causing Coal Plants to Shut Down?
Natural gas-fired generators, where a majority of Texans get their power, are cheaper, cleaner, more efficient and therefore more competitive than coal for power production.
Last year, Texans received 18 percent of their energy generation from renewables. While federal incentives for wind has made it cheaper to create wind farms projects in Texas, the Renewable Electricity Production Tax Credit (PTC) began stepping down in 2017. It will phase out at the end of 2019. Still, as companies rush to build more wind farms before the credit expires, look for customers to switch electricity providers, looking for renewable energy plans in Dallas.
Energy customers in Texas have the power to choose the cheapest rates from a variety of providers, making the EROCT market highly competitive. While the Trump administration has made efforts to save coal, its expense and the cultural trend behind sustainable energy generation has made it harder for coal to survive throughout the nation. Expect the trend to continue as alternatives to coal become abundant and accessible.
Where Can I Save Money on the Best Electric Rates in Texas?
As the market continues to grow and change in Texas, it can be overwhelming to think about what that means for you. If you’re like most people, you want to make sure you have an energy plan with the cheapest energy rates.
While it can be confusing, comparing Dallas electric rates doesn’t have to be. Visit www.TexasElectricityRatings.com for more information on energy trends and for expert tips on how to compare, shop, and switch to the best electricity plan for your specific needs.