“The energy hub”
Houston, a city in Texas, is often
referred to as the “Energy Capital of
the World” due to its major contribution in the energy industry. More than
half of the research centers in Houston focus on development of energy
technology and its innovation. Even the majority of the economy of Houston is
dependent on the energy industry, particularly oil.
So much
energy, what’s the source?
Houston is a state in Texas where the
major energy created is by natural gas. Texas is a major provider of natural
gas in the state of the US, creating 25% of the country’s natural gas. Natural
gas has been proven the best source to produce electricity there. This
constitutes half of the energy of Texas, in figures 46%. Remaining half of the
energy is contributed by coal production -18%, wind power accounting for 23% of
total, nuclear power contributing for 11% and solar being a small share of 2.
The average price of domestic energy per unit is low as 12.01 cents per
kilowatt hour.
Many produce
high, why are prices here so low?
Being the energy capital of the world
with so many electric companies in Houston, its residents have dozens of
reliable options to choose from.
In Texas, almost the whole state is
made energy deregulated i.e. 85% of the total. Deregulation of electricity
means that consumers hold the right to choose the company from which they will
receive the electricity, Retail electricity provider (REP). For example
cellular networks in India. REP’s are majorly held responsible for supply,
support and maintenance of electricity provided to consumers.
Cons of
REP’s
For every product, it’s a usual thing
that sellers try to attract consumers by giving them the best deals. Something
like this happens with electricity in Houston where there is a huge competition
in REP’s. REP’s offer best rates and offers to attract and retain their
consumers. This leads prices to fall down and best benefit the consumers.
1) Option to Choose- Consumers have the option
to choose best deal for them, question and complaint, their provider easily
2) Access to New Energy Technologies- In order to lower the
prices, providers try to make use of the latest technologies to reduce the
production costs which keeps them flowing with the new technologies.
3) Reduced Grid Pressure- Energy regulation Texas helped to
reduce load on one grid and increase its reliability. Even more funds and
incentives were implemented by the government to reduce cost of production and
reduce peak demand.
4) Stimulates New Investments- The cheap production due
to natural gas and getting appreciable profit, investors are more encouraged to
put their money in this sector.
Is Texas'
system perfect?
Houston and Texas are working efficiently with the current
energy system but unseen natural calamities can move this far by. In late
February 2021, Texas was hit by a storm and although Houston being chief
producer, some people were made to pay high bills as during the storm,
production was hindered, lines were broken and many people had no access to
energy.
Only some of the people managed to get energy and they were
charged massive bills for consuming energy just for a few hours. Although this
matter was then called out by the Mayor of Houston and settled people and
company into common grounds.
All in all, energy prices depend on the availability.
Every energy distribution method is
different but the best suited for the state is decided by the government.
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