Welcome to Thoughts in the Market.

I'm Andrew Sheetz, Chief Cross-Asset Stragist for Morgan Stanley.

And I'm Stephen Bird, Head of Morgan Stanley's North American Research for Power and Utilities

and Clean Energy.

And today on the podcast, we'll be talking about lessons learned from last week's Power

Grid issues in Texas, and implications for the U.S. Clean Energy Transition and Markets.

It's Thursday, February 25th at 3PM in London, and 10AM in New York.

So Stephen, I wish we could be talking under better circumstances, but as many listeners

no doubt heard or experienced firsthand, last week saw a terrible winter storm hit much

of the country, and Texas was particularly hard hit.

So as somebody who spends your day focused on utilities and the challenges that they face,

what happened in Texas?

And what are the unique issues there that you think matter for how energy gets delivered

to people?

It was really a very upsetting situation in Texas, and our heart goes out to the Texans

impacted by the terrible grid outages last week.

So let's talk about what happened and what we know and what we don't know.

So starting very early Monday morning, really at the start of the day, the power grid operator

was forced to resort to blackouts of parts of the grid, because essentially there simply

wasn't enough power.

Now to give you a sense of the magnitude of the issues here.

So first on demand, demand because of the incredible weather was much higher than forecasted.

...