The Texas Outage's Winners and Losers in Financial Markets
image credit: Photo 167493806 ©
In the tangled skein of discussions about the outages in Texas, accusations and counter-accusations are flowing thick and fast. Some blame the grid’s reliance on wind energy; others are pointing to its market design which circumvents capacity planning with scarcity pricing; still others say weatherization might be the culprit.
It is, of course, too early to determine causes and effects of the outages. But their repercussions are already being felt in the financial markets, where a couple of winners and losers have emerged from last week’s events.