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Energy in Texas

  • 4 min read
  • 3 chapters

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Through Wind power, Renewable energy and Solar energy

Electricity

Since 2002, Texas has operated under a mostly deregulated electricity market (however, areas where electricity is provided by either a municipality or a utility cooperative are not always subject to deregulation). The Texas Interconnection is the statewide grid, managed by the Electric Reliability Council of Texas (ERCOT).

Major transmission operators include Oncor Electric Delivery and CenterPoint Energy, with additional companies including Entergy Texas and AEP Texas. Prices for transmission and distribution, as opposed to generation, have risen relatively. In most areas of Texas, consumers can choose their generating provider, but as of 2017 there were areas with limited to no competition.

Renewables

Texas is a leader in alternative energy sources, producing the most wind power of any state, as well as small solar powered efforts and the experimental installation of wave powered generators.

Wind

Texas has over 150 wind farms, which together have a total nameplate capacity of over 30,000 MW (as of 2020). If Texas were a country, it would rank fifth in the world: The installed wind capacity in Texas exceeds installed wind capacity in all countries but China, the United States, Germany and India. Texas produces the most wind power of any U.S. state. According to the Electric Reliability Council of Texas (ERCOT), wind power accounted for at least 15.7% of the electricity generated in Texas during 2017. ERCOT set a new wind output record of nearly 19.7 GW on January 21, 2019.

Solar

The western portion of the state especially has abundant open land areas, with some of the greatest solar and wind potential in the country. Development activities there are also encouraged by relatively simple permitting and significant available transmission capacity. Some solar parks also host batteries, while other batteries are only connected to the grid. Texas has 5.7 GW batteries, and most of them earn most of their annual income on 15 days of extreme weather per year, and from arbitrage and grid services.

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