Four years ago, during the harsh conditions of Winter Storm Uri, electricity sources across Texas struggled to maintain power, prompting state Republican leaders to criticize renewable energy sources like solar and wind and instead encourage the bolstering of natural gas-powered generation. Texas, which has become one of the nation’s leading producers of renewable energy due to decades of growth in solar and wind, began to see its leaders turn against these renewables as they started to offer serious competition to conventional coal and gas-fueled power.
Across the U.S., anti-renewable sentiments also rose as part of the broader debate over climate change mitigation—where scientists indicate that climate change may escalate the severity of weather events in Texas, increasing risks to life and property. However, with the current legislative session underway, the political climate is subtly shifting in Texas as the state anticipates an enormous spike in electricity demand stemming from the influx of large energy users, such as crypto mining facilities, and the additional strains of population growth and extreme weather.
Recognizing the need to meet this rising demand, policymakers are acknowledging the necessity of utilizing every source of power. In December, Governor Greg Abbott stated, “Here in Texas, we believe in an ‘all-of-the-above’ energy approach,” highlighting Texas’ position as a major oil producer and a leader in wind and large-scale solar generation. Abbott underscores the need to enhance grid capacity to ensure reliable and affordable power for all Texans while supporting the expansion of Texas’ nuclear industry.
The expansion of renewable energy sources in Texas played a critical role in avoiding catastrophic outcomes since the near-collapse of the state grid during the 2021 storm that left millions in darkness and hundreds dead. Over the last four years, the state’s energy supply surged by 35%, with an impressive 92% of this growth attributed to solar, wind, and battery storage, based on analysis by energy consultant Doug Lewin. Texas not only advanced in renewable production, but also became a national leader in battery storage capacity.
Last year alone, Texas installed more solar power than any other state, excluding California, bringing around 9,700 megawatts of new solar generation and 1,735 megawatts of wind power online. According to the Federal Reserve Bank of Dallas, these new resources not only increased the grid’s resilience, particularly in summer, but also prevented the need for emergency alerts during one of Texas’ hottest recorded summers. The improvements in grid reliability are attributed in part to new weatherization requirements implemented after the 2021 event.
From a financial perspective, the presence of renewables has also saved Texas consumers approximately $11 billion over the past two years, according to a report by IdeaSmiths LLC, an energy analytics firm. System-wide, renewable resources contribute significantly to the availability and affordability of power, as observed by Bryn Baker, senior director of policy innovation at Texas Energy Buyers Alliance.
Despite advancements, the Electricity Reliability Council of Texas (ERCOT) forecasts that energy demand will almost double by 2030, spurred by extreme weather conditions and new major electricity consumers. Although state lawmakers have moved to incentivize natural gas generation, experts caution that these efforts alone won’t meet demand soon enough. As such, they advocate against blocking the development of any form of electricity generation, including renewables.
Renewable energy supporters are hopeful that lawmakers will consider renewables’ critical role in meeting rising energy needs. These projects have already provided substantial tax revenues for local districts, benefiting communities within key lawmakers’ territories.
In particular, many districts represented by influential legislators see a direct fiscal boost from renewable energy developments. For example, Speaker of the House Dustin Burrows’ district is poised to receive millions in local tax revenues from existing renewable projects.
Nevertheless, opposition remains resilient, as legislation aimed at imposing stricter regulations on renewable projects re-emerges. Bills like Senate Bill 819 propose rigorous conditions for the development of wind and solar projects, which renewable advocates argue would significantly hinder growth. Criticism is also directed at other legislative proposals that incentivize non-renewable development over renewables, potentially destabilizing the sector.
As policymakers navigate these contrasting pressures, the focus continues to be on equipping Texas’s energy infrastructure to support future demand effectively. Proposals include measures that address consumer protections and advance technologies like nuclear power while ensuring generation capacity and infrastructure can sustain Texas’s growth. As the legislative session progresses, experts urge lawmakers to consolidate efforts in fostering innovation and energy independence rather than stifling renewable developments.
