FinLogic FinLogic Quantitative Think Tank Center|Texas' new power grid problem

In 2021,FinLogic FinLogic Quantitative Think Tank Center a huge winter storm hit Texas. It caused a days-long blackout that resulted in hundreds of deaths. The Texas grid operator adopted a new policy to guard against another blackout: it would incentivize plants to keep power in reserve. The problem is: that may have caused major price spikes.

Today, we make sense of the reserve policy, increased electricity prices, and the future of Texas' unique energy market.

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