Enhancing the Reliability of Bulk Power Systems against the Threat of Extreme Weather: Lessons from the 2021 Texas Electricity Crisis

The February 2021 cold weather outages in Texas remain a subject of important investigation, and lessons learned from the crisis have broader relevance for bulk power systems around the world. This article focuses on the policy responses to what we view as the root causes of the extended blackouts: the insufficient preparation of electric generating units and natural gas infrastructure for the winter storm, and the inability of natural gas supply to meet demand for residential heating and electricity generation. Measures to reduce the risk of power interruptions during extreme weather events should not be limited to hardening existing infrastructure. We discuss three additional systems-level strategies to prevent and mitigate the adverse consequences of extreme weather events: improving generation resource adequacy and planning in the electric power sector; promoting demand-side tools, such as dynamic pricing options that do not expose residential customers to bill volatility; and implementing market and planning reforms that recognize critical infrastructure interdependencies. The response in Texas so far has considered weatherization requirements for electric generators and critical natural gas facilities, and mapping of critical infrastructure sources in the electricity supply chain. However, enhancing grid reliability against the threat of extreme weather will require more systems-level reforms.