California has the most stable U.S. grid due to its renewables plus batteries
Anti-renewable fans often use California as an example of a state where the growth in solar and wind has increased the risk of electricity-grid blackouts. As it turns out, though, California’s largest grid, CAISO, is the most stable in the U.S., as evidenced by the fact that it had the lowest wholesale electricity prices among U.S. grids during the past year. There has even been no grid blackout since August 2020. Wholesale electricity prices include spot prices, which are the real-time immediate cost of electricity. When spot prices drop, wholesale prices drop. Low spot prices, thus low wholesale prices, mean it is easier to match instantaneous demand with supply on the grid. Because California never had a single period with high wholesale prices during the past year, it had the easiest time matching demand, thus the most stable grid. Why? Although California has grown so much solar and wind since 2023, causing fossil gas use to decline by 61 percent, it has also added more batteries than any other grid region. Batteries respond to a shortage in demand within 20 milliseconds, versus up to 5 minutes for gas. Whereas, California has low wholesale electricity prices, it has high retail prices. But such prices have nothing to do with renewables or batteries. They have to do with utilities passing onto customers the high cost of wildfires caused by transmission-line sparks from 2015 to 2026, undergrounding transmission lines to avoid fires, upgrading an aging transmission system, using some gas and nuclear, the San Bruno and Aliso Canyon gas disasters, and upgrading gas pipes due to San Bruno. Despite California’s high retail electricity prices, Californians pay 23 percent lower electricity bills than Texans because California is the most energy efficient state, using 61 percent less electricity per person than Texas. Lastly, among all 50 states, the more renewables, the lower retail electricity prices. In sum, renewables and batteries stabilize grids and reduce retail electricity prices on top of eliminating health and climate costs of fossil fuels.
Grids with the lowest U.S. wholesale electricity price
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TX pays 23% higher electricity bills than CA due mostly to CA's energy efficiency
web.stanford.edu/group/efmh/…
More renewables mean lower electricity prices
web.stanford.edu/group/efmh/…
Video
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