Texas just got closer to blackouts than it has since 2021. What happened?

No, because of scale. A large factory is one entity to deal with. Moving just one out of state is possible, but meaningless as even though houses are significant overall you need to deal with many houses before an actual difference is made, while if you can deal with a factory you can make a large difference for the same amount of effort.

A factory/hospital is also easier because they probably have a backup plan. if there is any possibility that the power will go out they are likely to have made backup plans. You are overall cheaper than their backup plans, but you can probably make them a deal where they run their backup plan instead of connecting to you. Since they already have the generator it isn't a problem for them to use their generator on your busy days, and so a small discount makes it easy to work with the factory than a home owner who is probably thinking about friends and family they are moving away from.

The power company has a list of who these deals are with and the priority order. I know of one factory with a coal boiler from the 1800s, and a generator from then 1920s - the whole is very inefficient and takes a full day to start up, but the power company makes it worth while to keep everything operational because every 5 years they can power it on and supply the whole town (at 5x the normal cost of power from the plants they run all the time). Meanwhile there is a store near my parents that is running their generator every hot day - a modern diesel generator when sized properly is not a lot more expensive than grid power so the store doesn't need a big incentive to use it instead of grid power.

Of course all of the above is for exceptions. Where I live now we have built far more wind than needed most of the time, and as a result 80% of our power is renewable. There are very few days when backups are even needed.

So why are they paying bitcoin miners to turn off, rather than just charging them market rates at all times and letting them decide for themselves?

I feel like I'm missing something here.

Consider the payment as the cost of maintaining demand during periods where you don’t want it.

It's like a factory that can only produce 100 widgets each week, nothing more or less. Ideally you want to always sell 100 widgets each week (supply = demand). You could build a smaller factor that only makes 60 widgets, but the cost per widget would be 50% higher and at market rates you can't make enough money to justify the investment.

So what you do is build the 100 widget factory and you sign up a customer who will always buy 40 widgets each week, and the remaining 60 widgets you sell to smaller customers.

If suddenly the demand from smaller customers hits 90 widgets one week, you don't want to just cut off the 40 widget customer and say "tough shit", because they may not come back and you're stuck with 40 widgets each week you can't sell.

So you pay them money in exchange for accepting a lower supply of widgets that week.

Even with the payments, net-net you’re better off because during the 50 weeks per year when smaller customers only buy 60 widgets, overall your set up is more efficient.

Establishing a separate mechanism to compensate "virtual" generation (via load reduction) works no matter what pricing structure I use for my typical energy purchases.

So to explain what I mean by that in depth - the economic losses from shutdown are limited to production losses during the shutdown, and there is no loss of inventory, or other secondary losses like process startup and shutdown for a refinery, semiconductor fab, or other kinds of manufacturing which product a physical good.

This static load absorbs some of the excess generation from wind and solar, thereby keeping the spot price in the grid high enough that thermal generation is still cost effective to build and operate.

Now, that all said, I dont think we should be paying them to shut down, they should just be disconnected wholesale from the grid during periods of ultra high demand as a condition of their interconnection to it. That said, we have programs designed to offset economic losses from disconnection from the grid during high use periods, and the bitcoin plants are just using that existing mechanism - I have mixed feelings about it, but I dont think its all bad.

It is all really new stuff to me but interesting. I think a lot of negative attention takes the light because the state of Texas is a political dumpster fire and I would be incredibly suspicious of anything the state tries to do, especially when it comes to something adjacent to a trendy industry that has made big news for scams after scams lately. But from what I am able to gather so far, there might actually be something here.

I do agree with one commenter in that I am not entirely sure its needed to provide payment to these guys, but maybe they are not able to be profitable with mining and selling Bitcoin alone, or need to hedge against the volatility of the price and payments help with both of those things.

While may be cathartic to muse how certain political ideologies tend to do the exact opposite when asked to conserve, Texans' don't trust the grid and they have valid reasons to not trust it.

It is a peak issue not a sustained issue during off hours so that can assist.

If they truly don't know, then that's a problem. If they do know but are waiting to release information until they know all the facts, that's probably fine.

Did he voted for people that are responsible for this?

It's not really possible to write about this without sounding political, but the article covers a problem of political origin. So I'll do my best here to stay objective.

The left is fairly aligned today along a number of ideological lines. Basically all democrats want renewable energy, recycling, regulated natural monopolies instead of privatization, minimal social safety nets in the form of unemployment insurance and food stamps, universal healthcare, higher taxes on the wealthy, etc. It feels that scaremongering over taxation is a distraction from the fact that corporations and the wealthy have received multi-trillion dollar tax cuts since the Reagan Revolution and trickle-down economics, which created the national debt, many argue by design.

The right however is divided between libertarian ideals and religious fundamentalism. Jesus would be sad that children are caged at the border, while Christian nationalists call for tougher border enforcement. Rivers are being poisoned while rightwing think tanks like The Heritage Foundation call for more deregulation. People are struggling to make rent, much less pay their taxes, while roads and bridges crumble due to siphoning of the general fund to pay for continuous war in the Middle East and the bloating of the military industrial complex via IOUs to social security. Just on and on and on. There is so much cognitive dissonance within the Republican party that its voters must hold their noses while continuing to vote for it, simply to avoid the pain of voting for the other guys. There is no unified Republican vision to speak of today like there was under a statesman like Eisenhower. So the party turns to strongmen like the former president and Ron DeSantis in desperation, while the left and the rest of the world watch in confusion.

I feel that the projection of the right's frustrations onto the left is not based in fact or reason. Florida is redder than ever, as you said. But Florida is becoming uninsurable. My friend just moved there and narrowly escaped having his home destroyed because hurricane Idalia turned east at the last moment. Homosexuals didn't cause that, centuries of CO2 emissions from the industrial revolution and complete denial of that fact by the right did. But the news makes both of those stances sound fair and balanced.

One of the major things that Republicans struggle with is materiality (relevance and prioritization).

Without a natural environment, humanity can't survive. Bitcoin may use a lot of energy (that's dwarfed by manufacturing and transportation) yet look how much it's popped up in the comments as a factor in the blackouts. Corporate welfare and defense spending dwarf food stamp costs like SNAP for children, yet Republicans consistency target that for spending cuts. Wind and solar costs fell below coal and natural gas a decade ago, yet rightwing think tanks continue to spread propaganda that renewables are more expensive, that photovoltaic panels and fiberglass windmill blades are worse for the environment than burning radioactive coal.

Even wedge issues like abortion aren't what they seem. The left argues that personal choice and responsibility should not be overridden by government overreach. But that's a Republican sentiment. Democrats would normally argue for the protection of embryos, since they are a vulnerable segment of the population and have no advocate. Yet the parties are flipped on this, using it as a tool to rally their bases. So indirectly, I agree with you here.

Same with gun control. Democrats aren't demanding that the government take away our guns. That's Republican propaganda. But the left is arguing for banning or at the very least licensing assault weapons, just like how a truck driver should probably have a class A driver's license to operate a vehicle with such destructive potential. The key here is that this is all beside the point, since both sides are trying to protect children in schools. But the right is still in denial that their own children aren't at risk as long as guns aren't regulated.

I don't really know what to say about all of this. And thankfully nobody cares what I think. And also I'm always wrong, luckily. But I believe in my heart that the pandemic opened our eyes to reality. The chickens have come home to roost. Formerly academic problems are now at our doorstep. I can see that Biden has survived nearly unsurvivable trauma, so now he's woke. He is no hero to the left, but its hero Bernie Sanders couldn't be allowed by the establishment. Where is an empathetic leader on the right? Where is the conservative leader that will rise above generational trauma to lead us into prosperity? There isn't one. Because the right isn't doing the work to move through a healing and growth process. There's only projection, finger pointing, half-truths and ridiculous eventualities like a whole state's power grid going down so that a few guys at the top can dip their sticky fingers into the public's electric bill.

Those models may have been wrong, or based on assumptions about temperatures that turned out incorrect.

So this was foreseeable, but unforeseen because they didn't wish to. And it will continue to happen, and worse.

With the grid, that's unacceptable. So there's an absurd solution of paying customers to influence their buying behavior, and even calling them 'service providers'. In a normal market, you charge more or less to steer consumer behavior, like what they do for human customers.

In this 'market', the government is providing much of the capital and the businesses are not taking on all of the risk. And some 'customers' are necessary to make the product work.

This is not an appropriate scenario for a free market. It's actually impossible for it to function as a free market.