Texas Power Outages Show Need For Development In Its Electric Power Generation, Transmission, And Distribution Market
19 Feb, 2021
Texas produces more power than any other state in the USA – and yet the unprecedented cold weather has shown how underprepared its infrastructure for electric power is. Power outages along with lack of utilities like water are some of the consequences felt by millions across the state due to the extreme drop in temperature. As seen during this challenge, major changes are required across the infrastructure in the state. As per TBRC’s electric power research report, the power generation industry is expected to see increased investment activity in the forecast period. Investments in microgrid technology, renewables and other advanced technologies are expected to drive the market. In the forecast period, the USA is expected to see investments of about $12.5 billion in microgrid. The renewable energy investments are expected to reach $1 trillion in the USA during the forecast period.
A winter storm in some of the warmest places in Texas has resulted in rolling power outages across the state. Service of electricity and utilities has been cut off due to limited supply of gas as well as frozen wind turbines, which is a hindrance to power generation. This energy crisis and the State’s lack of preparation for such an event is yet to be investigated to prevent future outages, but for now, waits to be solved in the present.
In the electric power generation, transmission, distribution industry, electric power generation companies are increasingly using batteries to store solar energy during daylight hours. These energy-storage sites consist of large lithium-ion batteries. These batteries store enough energy to serve as a back-up in case of fuel shortages. They are designed to absorb solar power and feed it back to the grid. These systems minimize the need for capital intensive power generation plants, thereby enhancing transmission and distribution efficiencies and thus reducing operational costs. For Instance, World Bank Group is planning to invest USD 1 billion for a new global program to accelerate investments in battery storage for energy systems.
As per data on the Global Market Model, the global electric power generation, transmission, and distribution market is expected to grow from $3.26 trillion in 2020 to $3.45 trillion in 2021 at a compound annual growth rate (CAGR) of 5.8%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $4.52 trillion in 2025 at a CAGR of 7%.
The global electric power generation, transmission, and distribution market is segmented by type into electric power transmission, control, and distribution, power generation, by end-user into residential, commercial, industrial, and by type of operator into public operator, private operator. Subsegments covered are electric power distribution, electric bulk power transmission and control, hydroelectricity,fossil fuel electricity, nuclear electricity, solar electricity, wind electricity, geothermal electricity, biomass electricity, other electricity.