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Can you guess which ERCOT Weather Zone is seeing the fastest growth?

  • Writer: Timothy Beggans
    Timothy Beggans
  • Aug 25, 2024
  • 2 min read

Updated: Nov 16, 2024


Is it the Coast (Houston), North Central (DFW), or the Far West (Permian Basin)? The answer might surprise you—it’s the Far West! Driven by the booming oil and gas industry in the Permian Basin, this region is experiencing an impressive 11% average annual peak demand growth rate.


Across the ERCOT grid, rapid growth is the trend. Transmission and Distribution Service Providers (TDSPs) project an additional 59,400 MW of demand by 2030. Data centers, Hydrogen Electrolysis, and Crypto Mining are the primary drivers of this surge. In the Permian Basin, crypto mining alone is capturing the lion’s share of new load growth.


Looking forward, the Permian Basin’s energy landscape is on the verge of a major transformation. By 2030, 24 GW of new power demand is anticipated. Half of this growth will come from the electrification of oil and gas operations as they strive to reduce emissions. The other half? It’s a varied mix: Data Centers (6%), Commercial and Industrial growth (13%), Hydrogen Electrolysis (22%), and Crypto Mining (59%).


The Electricity Reliability Council of Texas (ERCOT) is adapting to these changes by exploring innovative ways to enhance grid stability. One potential solution is integrating Bitcoin miners as Controllable Load Resources (CLRs). With current Bitcoin operations drawing 2,600 MW and another 2,600 MW approved for future integration, the opportunity is vast. However, only 5% of this capacity (around 150 MW) is currently participating in ERCOT’s CLR program, signaling untapped potential for grid management.


Reeves County, Texas, stands out as a key growth area, expected to see the highest demand increase driven by wet gas processing from New Mexico Delaware Basin production. As more intermittent renewable resources like wind and solar are added to the grid, maintaining stability becomes more complex. Here’s where flexible, large-scale consumers like Bitcoin miners could play a critical role.


The attraction of the Far West goes beyond its geography—it’s about affordable power. Low-cost energy is drawing Bitcoin miners and Hydrogen Electrolysis projects to the region. But what happens if power prices rise? This question is central as ERCOT navigates the balance between economic development and energy costs.


As the energy mix evolves and consumption patterns shift, the Far West’s role in ERCOT’s grid will only grow, shaping the future of energy in Texas.


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