The Daily Baseload Brief

The PUCT convened its 20 August open meeting today, where ERCOT sought a good-cause exception to Batch Zero interconnection deadlines to accommodate Governor Abbott's 3 August directive requiring a comprehensive audit of all data center projects advancing through ERCOT's queue before any additional projects move forward.

ERCOT is tracking approximately 474 GW of interconnection requests, roughly 90% of which are from data centers. At the 14 August open meeting, ERCOT stated it expects the verification process to take several months, but less than nine months, with the audit set to commence shortly after today's session. Projects found to be in violation of PUCT, ERCOT, or state law requirements face denial of grid access under the governor's directive. The immediate practical effect is a delay in Batch Zero Large Load classification notifications - originally due 7 August - and a temporary pause in interconnection studies for loads of 75 MW and above.

The Batch Zero exception request follows ERCOT's 10 August filing previewing its audit implementation plan. The 90th Texas Legislature convenes in January 2027, when PUCT is expected to seek expanded statutory authority over the data center industry. Developers with project milestones, financing drawdowns, or land closing schedules tied to the August 7 deadline face an uncertain timeline until ERCOT provides updated classification dates.

Energiekontor's 14 August guidance cut - from €40-60 million to €5-10 million EBT for 2026 - continues to reverberate. Legal proceedings challenging approval of a Scottish Power Transmission overhead line in Dumfries and Galloway have pushed grid connection dates for three Scottish wind projects from 2029 to 2031, affecting a combined 1.4 GW of capacity. The company's H1 2026 EBT came in at minus €4.7 million. A court decision is expected in H1 2027; the wider UK pipeline is still awaiting grid connection offers under NESO's reform process, due by mid-September 2026.

In Latin America, energy storage deployment remains concentrated in demonstration projects, small-scale grid-support applications, and remote-area microgrids, with a large-scale market yet to take shape^[1]. Transmission and distribution capacity and market mechanisms still require improvement across the region, even as solar and wind continue to grow their share of newly installed generation capacity^[1].