Demand for energy in Texas has set new records during the hot summer months and through cold winter weather each of the last several years, leading to new investments by energy companies across the state.
The Weather Channel reported in August that Texas set 10 all-time peak demand records in 2023. According to the report, the Electricity Reliability Council of Texas recorded 11 peak record demands in 2022. The increase in demand results from a booming population and unusual changes to weather patterns.
Digital meteorologist Johnathan Belles explained that most of southern Texas recorded the highest temperatures on record last summer, with cities like Houston and San Antonio running two to five degrees above normal. He explained that the high temperatures, caused by a stagnant ridge of high pressure, also reduced winds across Texas and Oklahoma. Texas gets 25% of its electricity from wind turbines, the most of any state in the nation.
The state’s largest electricity energy provider, Oncor, has announced plans to invest $24.2 billion in electrical infrastructure over the next five years to ensure a reliable grid during times of peak demand. The company spent $1.6 billion in 2023, adding 42 major substations and switching station projects while adding service to more than 130,000 locations between 2022 and 2023, according to reports by The Dallas Morning News.
Several energy companies are investing in solar and wind battery storage facilities across Texas. The battery backup systems offer a way for ERCOT to provide additional power at times of peak demand almost instantaneously while other facilities increase production.
The U.S. Energy Information Administration (EIA) reports that Texas is expected to bring 5.4 gigawatts of battery storage online in 2024, more than any other state. California is anticipated to bring 5.2 megawatts online, with the two states accounting for more than 80% of added capacity in the nation.
The EIA says Texas will lead the nation in new solar projects as well. Texas is forecasted to bring 35% of the nation’s new solar projects online this year.
Texas is not just addressing the electricity demand; the state is also finding solutions to the ever-growing transportation sector with new investments in renewables, as reported by Business Wire. On February 26, Clean Energy Fuels Corp. announced on Tuesday the opening of two renewable natural gas (RNG) fueling stations in Texas, one in south Dallas and the other in North Fort Worth.
RNG is a lower-carbon fuel made from organic source materials, such as cow manure. It has a negative carbon rating yet provides power equivalent to diesel fuel.
The U.S. Environmental Protection Agency stated that the transportation industry is responsible for 28% of the nation’s greenhouse gas emissions, while the agriculture sector produces nearly 10%. By replacing diesel with RNG, the industry could significantly reduce the impact of greenhouse gas emissions while using a cost-efficient energy source.
Clean Energy Fuels opened a facility in Friona, Texas, in 2023 that captures methane from a dairy farm and converts it into RNG. The company will soon begin construction on a second facility in Dimmitt, Texas, according to Business Wire.