Ryan Stancil,
Editor
May 31, 2022
Here we go again.
As the seasons change and the weather turns, Texas is poised to face numerous issues with its power grid.
If you remember, early last year, a winter storm came through the state and caused a massive power crisis that made national news.
More than four million homes were without power, some for days. At least 200 people died.
Pipes froze, grocery stores ran out of food, and important infrastructure like fire hydrants couldn’t be used.
Who was to blame for it?
The governor tried to say renewable energy sources like wind turbines and solar panels were at fault. The data showed a lack of preparedness on the part of the state was behind it.
Generation sources weren’t winterized and, because Texas’ grid is independent of the rest of the country’s, importing electricity to cover the shortfall was difficult.
Now, barely a year and a half later, it looks like the Lone Star State may be due for a repeat.
A new report from the North American Electric Reliability Corp. (NERC) said that the central and upper Midwest, Texas, and Southern California all run an increased risk of power outages thanks to wildfires and extreme heat.
Oh, and the threat of cybersecurity attacks and supply chain issues may also contribute to the lights not staying on in these parts of the country.
We’re not yet in June, but issues are already beginning to pop up.
A few weeks back, six power plants in Texas went offline during a heatwave due to demand. These plants would have produced enough electricity for more than 500,000 homes. Blackouts were avoided thanks to reserve power, but authorities asked Texans to conserve power by setting thermostats to 78 degrees during peak hours. They were also told to avoid using large appliances.
And this is all ahead of what utility companies have forecast to be a summer of record-breaking electricity demand.
While what’s happening with Texas’ energy grid may be an extreme case, it’s hardly a unique one.
All around the country, our power infrastructure is old and in dire need of an upgrade. Just over the last six years alone, power outages have doubled compared to the previous six years. As time moves on and demand rises due to extreme weather, those outages will be more frequent.
The need for a new way of delivering and managing electricity is as clear as day. It’s an undertaking that’s going to cost a lot of money and take a lot of work to put in place.
But it’s also going to present an investment opportunity that could be just as transformative as the actual grid overhaul.
Modernizing the grid doesn’t just involve protecting it from harsh weather and cyberattacks. It also involves adding renewable sources and making sure it can handle demand from the growing number of electric vehicles.
That means any companies working in the energy space will have to offer the kind of disruptive technology needed to make this new grid possible if they want to stay competitive.
And that’s where you’ll find the best places to put your investment dollars.
One company has developed technology to control the flow of energy. This will put it in position to corner the market in its particular niche.
This tech is going to be crucial to our energy infrastructure overhaul, so the central role this company will play is not something investors should ignore.
Its potential is like buying Amazon in its earliest days. It has that much room for takeoff.
Wall Street is largely ignoring the story, making it the perfect in for you.
Learn all the details and see just why this will end up being one of the big investment stories of the next few years.
Ryan Stancil
Editor, Daily Profit Cycle