Texas is investing in renewable energy
Often cited as a model for green energy development, California is not the only American state working on an energy transition. Proof with Texas: the oil king state is investing more and more in renewable energies. So much so that in 2023 they should be the first source of electricity production in the state.
In Texas: the renewable energy boom
2022 will be a turning point in Texas’ energy investment strategy. The state has been embarking on its energy transition for several years now. His priority: a greener electricity mix. And for this, Texas decided to invest heavily in the development of renewable energy.
Enjoying high levels of sunlight, good exposure to wind and wide open spaces, Texas had everything to develop solar and wind energy. In 2022, these two sectors benefited from increased investment. Solar energy production capacity increased by 8.6 GW. This is the second strongest increase in 2022 among America’s fifty states. Even better: With 30 GW of wind capacity installed by 2022, Texas has risen to the top of the rankings.
These investments have a direct result: in 2023, renewable energy should become the first source of electricity in Texas. Indeed, according to Electric Reliability Council of Texas, the operator of the state’s main electricity grid, green electricity continues apace. When all sources are combined, green energies should account for 37% of Texas’ electricity generation in 2023. As such, they should be slightly more than natural gas, which has been the state’s primary source of electricity generation to date.
Economic dynamism and support of state authorities
If renewables are thriving in Texas, which is heavily dependent on fossil fuels, it’s because the context is favorable. Indeed, Texas is currently experiencing a real economic and demographic boom. So much so that its demand for electricity explodes. The past decade has seen the state’s population grow by 4 million people, approaching the 30 million mark. At the same time, economic dynamism requires the provision of many industries that exist in the area.
Government agencies have mobilized to solve electricity problems. Led by a Republican governor, the state benefits from bipartisanship on energy. Democrats support the renewable energy development administration. This translates into a financial framework that specifically encourages investments in solar and wind power.
Energy transition: local authorities lead by example
In addition, local governments in Texas are also investing in renewable energy. Last December, the “Dallas Times” newspaper cited Dallas County as an example. Starting in January 2023, the province is committing to providing only green electricity to 55 of its buildings. Signed a 3-year contract with Dallas County. And the reason for this agreement is above all environmental. Although Texas experiences extreme climate episodes every year, the authorities consider it their duty to mobilize in favor of alternative energies.
Renewable energy in Texas: an economic challenge for the future
In addition to being a major job provider in Texas, the energy sector is a mainstay of the economic environment. The Lone Star State is the largest energy producer in the entire United States. Texas is determined not to lose this leadership position during the energy transition. This explains the strong mobilization of Texas authorities in favor of renewable energy.
This energy policy is paying off as it ensures the attractiveness of the state. Thanks to the support of the authorities, Texas is implementing large development projects in the field of solar and wind energy. Two new solar farms will be built this year: Dove Run and Sun Cactus. They are both sponsored by Savion Energy. They will allow for the installation of at least 400,000 solar panels, which could power 58,000 homes. The facilities are expected to be commissioned in 2025.
There are also international investors in the area. It is in Texas that Turkey’s Sabancı Holding Company has chosen to build its next solar farm. The construction site will start in the first quarter of 2023. And it will be set in Fort Bend County.