A megawatt (MW) equals one million watts of power and is used to measure large-scale electricity generation capacity. In Texas, which hosts one of the largest electricity markets in the United States, power plants often generate electricity in megawatts. For example, a natural gas-fired power plant might have a capacity of 500 MW, enough to power hundreds of thousands of homes. When evaluating energy options, Texas businesses and municipalities look at power contracts measured in megawatts to meet industrial loads or municipal electric needs. Texas utilities measure peak load demands in megawatts to ensure there is enough generation capacity to meet consumption. Understanding MW helps Texans better appreciate the scale of the power grid and plan energy strategies accordingly.
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