Despite being one of the United States' largest oil-producing states, Texas has transformed its energy infrastructure by investing in renewable energy sources in the last decade.
Texas is leading the planned wind and solar projects in the U.S. In 2035, its capacity is expected to double and account for 45 percent of the state's total power generation.
Texas is also on track to surpass California in large-scale solar power this year.
Moreover, Texas barely had battery storage several years ago. By the end of this decade, the state can supply more than 30 gigawatts of storage to around 22.5 million homes.
How did the Texas government make this energy transformation possible? What are the challenges of this renewable advancement, and how can other states follow suit?
Read on to learn more.
How did Texas' energy infrastructure become greener?
Texas' energy infrastructure has become greener for the following reasons:
Geographical characteristics
Experts say Texas' renewable energy infrastructure is due to its windy conditions and sizeable geography in the western part.
For example, the Roscoe Wind Farm is one of the world's largest wind farms, located 45 miles southwest of Abilene. It can power over 200,000 homes.
The state's existing transmission structure is also beneficial because it allows wind turbine construction. It can even supply electricity to major East Coast cities, such as Houston, Dallas, and San Antonio.
As such, Texas can quickly leverage its resources in wind-rich areas without constructing new transmission lines.
Federal-funded incentives
Federal subsidies are crucial to this renewable energy investment. These incentives made developing wind-power production projects and wind turbine construction more economical and feasible.
Due to the production tax credit, wind farms had high capital costs. However, federal subsidies have made them viable for producing electricity in Texas.
Establishing a wholesale market in Texas was also advantageous. This market allows the state's renewable energy projects to participate in a competitive marketplace.
A standalone energy grid and deregulated energy market
The ERCOT—Electric Reliability Council of Texas—is Texas' standalone energy grid and a deregulated energy market that established economic incentives and opportunities for renewable resources.
These standards allow almost anyone to enter and contribute to the state's renewable grid, enabling many entities to generate and supply power to Texas.
As a result, Texas was able to integrate smart grid technologies to optimize wind energy distribution. The government also invested heavily in modernizing the grid infrastructure, and public entities and private companies collaborated to fund and implement these upgrades.
These benefits are attributed to Texas' transmission mechanisms and naturally windy geography—factors that aren't present in many U.S. regions.
Economic Impact of Green Energy Infrastructure in Texas
Besides environmental gains, Texas' green energy infrastructure helps strengthen its economy in the following ways:
More job opportunities
Renewable investments can create three times as many jobs as the same level of fossil fuel spending.
The Renewable Energy and Jobs – Annual Review 2023 report projected that renewable energy jobs could reach 38.2 million in 2030.
One of the most advantageous factors of these job opportunities is that they're available throughout the country—wherever the sunlight and wind are. In contrast to fossil fuel investments, the jobs are primarily restricted to specific resource-rich areas.
Moreover, solar panel and wind turbine installers are among the fastest-growing jobs in the growing renewable industry.
Income diversification for landowners
Renewables can be a lucrative income source for rural farmers and landowners.
Landowners can diversify their income with these investments, particularly in regions where agriculture is unpredictable due to market fluctuations and weather conditions.
Lands with renewable energy sources also tend to appreciate. This value increase is ideal for landowners who want to sell their lands or use them as collateral for loans.
Independence in energy and trading
Domestic renewable energy production helps minimize the need to import fossil fuels, preventing the local economy from losing money. Texas can count on lasting energy and trade independence because renewables don't run out.
Because of this energy and trade independence, renewables are significant investments that can boost local dollars, ensuring the money spent on energy stays local.
Doubling renewable energy deployment can also cut oil and gas imports by seven percent, resulting in savings of $104 billion by 2030. Higher electrification of heat and transport can achieve another $181 billion reduction.
Reduces climate change's financial repercussions
Climate change's financial repercussions can be substantial for local economies.
For instance, droughts, floods, and hurricanes can cause billions of dollars in damage to infrastructure, agriculture, and property. Air and water pollution can also yield significant health costs.
Therefore, Texas switching to renewables helps slow climate change and reduce these economic losses. The government can save money and allocate it to other renewable projects or state-funded initiatives.
A steady return on investment
Renewables aren't dependent on finite resources.
Although upfront costs can be expensive, ongoing expenses are usually limited to maintenance and operations. These expenditures are generally foreseeable and lower than the erratic prices of fossil fuels.
This not only helps lessen the financial burden of importing, but it can also ensure a steady return on investment.
This energy infrastructure helps establish a resilient and forward-thinking market for Texas. It can yield long-term economic advantages, such as enhanced energy security and technological innovations.
Challenges in Texas' Green Energy Infrastructure
The fossil fuel industry in Texas is still as powerful.
Due to the strengthening stridency of far-right politics, the state's renewable power grid expansion is challenged. Although it hasn't significantly impacted the industry, far-right politicians are still becoming restrictive.
Power blackouts in Texas were attributed to grid resilience issues. The problem was the lack of weatherization protection in coal, natural gas, and nuclear assets. The system wasn't prepared for extreme weather conditions.
However, a recent study proposed a model to increase Texas' grid resilience and temporally resolve the line failures and outages caused by tropical cyclones.
Public sentiment is also involved. Despite the state's success in renewables, locals are confused about why Texas isn't spearheading the abandonment of natural gas and power plants.
Further, the lack of structured permitting processes can increase the likelihood of project opposition, making lenders wary of financing uncertain projects. Local jurisdictions may even exercise control using special permits.
How can other U.S. states' energy infrastructure evolve like Texas?
Only a few states could emulate Texas' green energy transformation. Many factors are unique to Texas, including its geographical characteristics, vast spaces for wind and solar power, and the ERCOT.
Although many states have deregulated or restructured their energy markets, Texas' willingness to allow entities may not be the case for them.
Nonetheless, other states can still learn and reference something that worked for Texas. They can re-engineer these efforts and make them feasible for their regions.
Texas Is Becoming a Leader in the Green Energy Revolution
Texas emerges as America's leader in renewable energy because of its significant strides in transforming its energy infrastructure.
The state has committed to sustainability by expanding wind and solar power and modernizing the grid systems.
While challenges still plague the transition, continued renewable investments and infrastructure modernization can ensure Texas constantly contributes to the green energy revolution.
