This research analyzes the causes of the February 2021 Texas “Big Freeze” power outages that caused the death of nearly 200 people and more than $90 billion in economic damages, finding ERCOT’s market design failed both to prepare the state and acceptably manage the crisis. The research identifies lessons learned from the crisis to help policymakers in Texas and other grid regions better prepare for more frequent extreme weather events including taking a more holistic approach to risk management, planning for “managed failure” of the grid, and deploying more demand-side measures like weatherizing homes.
Lessons From The Texas Big Freeze
This research report examines the causes and consequences of the widespread Texas "Big Freeze" power outages, finding that ERCOT's market design failed to prepare the state for such a crisis and to acceptably manage the crisis, and identifying lessons learned for policymakers in Texas and elsewhere to prevent future crises.
