Guest Column

Finding a Balance: Growing renewable energy vs. grid resilience in Texas

Balancing renewable energy growth and grid resilience requires a multifaceted approach. Photo via Getty Images

The global energy sector is on an exhilarating trajectory, teeming with promising technologies and unprecedented opportunities for a sustainable future. Yet, we find ourselves grappling with the challenges of reliability and affordability. As both a researcher in the field of power electronics and a consumer with bills to pay, I find myself experiencing mixed feelings.

As a researcher, I am thrilled by the progress we have achieved, particularly in energy conversion. The exponential growth of renewable energy technologies in Texas and beyond, including wind turbines and solar PV systems, is cause for celebration. These innovations, coupled with supportive policies, have facilitated widespread deployment and the potential to significantly reduce greenhouse gas emissions, combat climate change, and create a brighter future for our children.

While renewable energy resources can play a crucial role in maintaining the supply-demand balance of the grid, as they did by performing very well during the recent 2023 Texas heat wave, their intermittent and unpredictable nature can also pose a significant challenge to the power system. Unlike traditional power plants that operate continuously, wind turbines and solar PV systems rely on weather conditions for optimal performance. Fluctuations in wind speed, cloud cover, and sunlight intensity can lead to imbalances between energy supply and demand. This imbalance will worsen as the anticipated influx of electric vehicles and their charging needs come into play.

The volatility of renewables contributes to price fluctuations in the electricity market, which not only affects consumers but also raises concerns about grid resilience during extreme weather events. My electricity bill increased by over 20 percent compared to last year, partly caused by inflation, but mainly due to higher operational costs in the Texas electricity market.

Texas witnessed firsthand the consequences of a not-so-resilient grid through the severe power outages experienced during the "Polar Vortex" in February 2021. These outages not only disrupted lives but also disproportionately impacted vulnerable populations. During that time, my wife was expecting our second child. Enduring two nights in our frigid home without electricity or a fireplace was an ordeal that we navigated relatively unscathed. But it made me think of those less fortunate. These circumstances underscore the importance of establishing a robust, dependable and affordable electrical power system.

Balancing renewable energy growth and grid resilience requires a multifaceted approach:

  1. Investment in Infrastructure and Storage: It is crucial to strengthen the grid and ensure a reliable power supply. Upgrading transmission and distribution systems, integrating advanced monitoring and control technologies, and enhancing grid interconnections are essential. The Texas Legislature established the Powering Texas Forward Act, also known as Senate Bill 2627, a taxpayer-funded loan program, to encourage investment. While excluding certain renewable energy facilities and electric energy storage, it recognizes the need for a reliable grid. Hydrogen fuel cell generation facilities could be a potential solution, providing clean and stable energy while remaining eligible for the loan program. Additionally, implementing large-scale energy storage systems utilizing batteries and hydrogen storage technologies can mitigate renewable energy volatility by storing excess energy until needed. The Texas energy industry's push for these advances is a significant step in the right direction.
  2. Diversification of Energy Sources: While renewables play a crucial role in decarbonization, a mix of renewable sources, natural gas, and other low-carbon resources is necessary for the foreseeable future. Implementing carbon capture, utilization, and storage (CCUS) technologies across industries can mitigate associated climate impacts. The failure of Senate Bill 624, which would have had significant repercussions for wind and solar facilities, indicates that Texas legislators are genuinely concerned about clean, alternative sources of energy. However, a lot more needs to be done, including coordinated actions between federal, state, and international governments, to address the urgent issue of climate change. Texas can leverage its hydrocarbon/energy expertise to produce economical green and blue hydrogen, advanced fuel cells and hydrogen-based internal combustion engine technologies, enabling a smoother energy transition in terms of usage and jobs.
  3. Educating the General Public: It is critical to help people understand the necessity of modernizing our energy infrastructure; the benefits and opportunities it brings and the transformations we can expect. Institutions like the University of Houston play a crucial role in advancing clean energy technologies and educating the future energy workforce. The establishment of the Texas University Fund (TUF), with a budget of over $3 billion, through a constitutional amendment in November 2023, will be a pivotal step toward this goal.

When addressing the energy transformation and grid resilience dilemma, the real-life impact on human beings must be of prime importance. Our leaders should focus on a balanced approach considering grid infrastructure investment, diversification of energy sources, energy storage solutions, and public education. By adopting this multifaceted strategy, we can ensure a reliable, resilient, and affordable energy future.

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Harish Krishnamoorthy is an assistant professor of electrical and computer engineering and associate director of the Power Electronics, Microgrids and Subsea Electric Systems Center (PEMSEC) at the University of Houston.

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A View From HETI

Through Dsider’s techno-economic analysis platform, Sujatha Kumar is helping startups bridge the critical gap between vision and execution, ensuring they can navigate complex markets with confidence. Photo via LinkedIn

What if the future of clean energy wasn’t just about invention, but execution? For Sujatha Kumar, CEO of Dsider, success in clean tech hinges on more than groundbreaking technology—it’s about empowering founders with the tools to make their innovations viable, scalable, and economically sound.

Through Dsider’s techno-economic analysis (TEA) platform, Kumar is helping startups bridge the critical gap between vision and execution, ensuring they can navigate complex markets with confidence.

In a recent episode of the Energy Tech Startups Podcast, Kumar shared her insights on the growing importance of TEA in the hard tech space. While clean energy innovation promises transformative solutions, the challenge lies in proving both technical feasibility and economic sustainability. Kumar argues that many early-stage founders, especially in fields like carbon capture, microgrids, and renewable energy, lack the necessary financial tools to assess market fit and long-term profitability—a gap Dsider aims to fill.

What Makes Dsider Unique?

Dsider offers more than just financial modeling—it creates actionable insights, tailored to the demands of the clean energy sector. At its core, the platform integrates TEA with operational planning, equipping founders with the ability to run scenario analyses, optimize pricing strategies, and anticipate market challenges. “It’s not just about building a product—it’s about understanding how to make that product thrive in a dynamic, ever-evolving market,” Kumar explained.

In industries where data is limited and stakes are high, startups often struggle to translate early pilots into scalable solutions. Kumar emphasized how Dsider’s approach helps founders forecast regulatory shifts, project downtime risks, and identify key economic drivers—turning complex calculations into a clear strategic roadmap. This foresight enables startups to align with customer expectations and investor requirements from the outset, a step that is often overlooked in early development stages.

Why TEA is Critical for Founders

“Clean tech innovation is hard,” Kumar emphasized, “because there is no historical data to guide decisions.” Startups often operate in unfamiliar territory, where understanding market fit and pricing models is essential. Through TEA, founders can build a financial narrative, simulate real-world conditions, and show investors or customers how their solutions will perform.

Jason, an experienced founder, echoed this sentiment, reflecting on his own mistakes:

"I wish I’d done a TEA earlier—during my first pilot, we didn’t budget for enough support, and it cost us a key customer."

The takeaway? Even at the pilot stage, TEA is invaluable. As Kumar noted, failing early pilots can prevent startups from scaling—making upfront analysis essential for success.

Beyond Technology: Bridging Gaps Between Founders, Investors, and Customers

Kumar highlighted the need to align founders, investors, and customers through a shared understanding of value. TEA enables this by allowing founders to communicate in the same language as their stakeholders—from efficiency gains to regulatory compliance. Dsider's platform provides tools for scenario modeling, allowing startups to optimize for both technology performance and economic outcomes.

One challenge, she noted, is that many founders are scientists without financial backgrounds. “Our goal is to simplify that complexity, so founders can focus on their technology while we take care of the analysis,” Kumar explained. Dsider helps startups anticipate questions from investors, simulate risks, and optimize business models from the start.

A New Way to Sell: Using TEA as a Business Development Tool

Kumar described how TEA can be more than a financial tool—it can become a business development asset. Founders can use Dsider to create customized reports for potential customers, demonstrating the specific value their technology brings. With interactive models and scenario analysis, startups can quickly respond to customer needs and build trust through transparency.

Future Growth

Looking ahead, Dsider aims to scale its operations and expand its impact by continuing to support early-stage founders with affordable, high-impact tools. With growing regulatory support for clean tech and an increasing demand for sustainable solutions, Dsider is positioned to become a key player in the energy tech startup ecosystem.

By bridging the gap between innovation and economics, Dsider is helping founders navigate complex challenges and build businesses that are both profitable and impactful—setting a strong foundation for future growth in the climate tech space.

Listen to the full episode with Sujatha Kumar on the Energy Tech Startups Podcast here.

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Energy Tech Startups Podcast is hosted by Jason Ethier and Nada Ahmed. It delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.

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