Well, it seems that everyone else is commenting on this event without waiting for the report, so I guess I will too. I'm using an article from a source that I trust to check sources, and to not sensationalize --
wsj.com.
https://www.wsj.com/articles/texas-...arket-incentives-11613777856?mod=hp_lead_pos7
The core problem: Power providers can reap rewards by supplying electricity to Texas customers, but they aren’t required to do it and face no penalties for failing to deliver during a lengthy emergency.
The phrase "power providers" must be read carefully. They mean power plants, that sell energy to power utilities. Power utilities that sell energy retail to consumers are punished by the PUC (Public Utilities Commission
http://www.puc.texas.gov/) for failing to deliver.
Later in the article, they mention the "capacity market" that Texas does not have, but other states do have. In NY, we call that ICAP. ICAP pays generators for being
capable of delivering energy, and bidding in the daily markets. The purpose of ICAP is to prevent bad guys like Enron from boosting prices by withholding capacity, or faking malfunctions. If ICAP payments are substantial, power generators want the payments badly. The key relevant here is, what do the power plants need to do to qualify for ICAP payments? Thinks like winterproofing for example.
Critics say ICAP pays providers for doing nothing, and Texas doesn't have it. But I agree with the WSJ that the lack of ICAP in Texas is a major blunder.
The system broke down this week when 185 generating units, including gas and coal-fired power plants, tripped offline during the brunt of the storm. Wind turbines in West Texas froze as well, and a nuclear unit near the Gulf of Mexico went down for more than 48 hours. Another problem emerged: Some power plants lost their pipeline supply of gas and couldn’t generate electricity even if they wanted to capture the high prices.
The grid operator said that about 46 gigawatts of
natural gas, coal and wind generation wasn’t working—roughly 40% of what it had expected to be available.
That's a staggering number, 40%.
But it wasn't just power plants. Natural gas pipelines, oil refineries, and city water systems, also shut down because of freezing. [EDIT: Therefore, some consumers who heat their homes with gas were left to freeze. Customers can provide for gas furnaces that can operate without grid electricity.]
Within the competitive Texas power market, there is a strong incentive for generators to keep costs down to recoup their investments. The rapid buildout of wind and solar power, which are now among the cheapest sources of electricity, have pushed prices even lower in recent years, making it more difficult for gas and coal plants to compete.
That touches on the destabilization of markets that I talked about in the 2019 PF Insights article.
https://www.physicsforums.com/insights/renewable-energy-meets-power-grid-operations/
EDIT: One more point.
Retail consumers should never be exposed to the volatility of wholesale energy prices. Sweden learned that many years ago when some consumers were similarly harmed when they chose to buy electricity on a time variable price. Consumers can never be adequately informed about the risks to enable knowledgeable consent.
That is not the same thing as utility peak/off-peak tiered pricing. Those tiers have published prices.
The system is supposed to be that power utilities buy energy on the volatile wholesale market. Then they sell to retail consumers, with the retail rates set by the PUC. Typically, retail rates stay fixed for 1-2 years.
It is community organizers who advocate becoming middlemen, buying power wholesale and selling it retail. They argue that helps keep the profits within the community. They escape regulation by the PUC. Of course, the organizers are never responsible for paying the bills when prices skyrocket. IMO, those middlemen should never be allowed.