by the numbers

Report: Solar tops coal in Texas for energy generation for the first time

In Texas last month, coal use dropped and solar energy soared, according to a new report. Photo via Pexels

For the first time in Texas, according to a recent report, solar energy generation surpassed the output by coal.

The report — from the Institute For Energy Economics and Financial Analysis — sourced the Energy Information Administration’s hourly grid monitor for March 2024. This shift in a predominantly oil and gas dominated history of Texas energy output, was due to solar power’s 3.26 million megawatt-hours to Electric Reliability Council of Texas (ERCOT) grid, compared to coal’s 2.96 million MWh.

In addition, coal’s market share fell below 10 percent to 9 percent for the first time ever, to just over 9 percent. The increase in solar energy pushed solar’s share of ERCOT generation to more than 10 percent for the month, which was also a first.

Due to its sheer size, Texas is the No.1 state for solar capacity. According to the report from SmartAsset, the Lone Star State has the most clean energy capacity at 56,405 megawatts, but continues to trail states with similar geographic characteristics in overall clean energy prevalence.

Texas only 38 percent of the state’s electricity capacity comes from clean electricity, and it has the second-largest solar capacity, which means Texas has the most means, space, and potential to accommodate cleaner electricity. Texas as a whole, ranked No. 22 on the list for states with the most clean energy in the SmartAsset report.

In Texas, generation in March 2024 was 1.17 million MWh more year-over-year, which is a 56 percent increase. ERCOT data shows that the system currently has 22,710 megawatts (MW) of operational solar capacity according to IEEFA, and is expected to expand by almost one-third by the end of 2024 with an additional 7,168 MW of capacity added. The number just considers Texas solar projects that have set aside the financing required to get onto the ERCOT grid and that have a signed interconnection agreement.

Texas burned 50.7 million tons of coal for electricity, which was 13 percent of the U.S. total in 2023 according to the EIA grid monitor. Coal's annual share of ERCOT demand ranged from 36 percent to 40 percent from 2003 through 2014. The last year percent. In 2020, coal was under 20 percent in 2020; and was less than 15 percent in 2023 supplying just 13.9 percent of the system’s total demand.

The IEEFA notes coal’s low March production is important because in recent years it has been the moderate temperatures of April and May and steady winds that have affected the usage and the market share.

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A View From HETI

Meta has agreed to purchase 100 percent of the power generated by Enbridge's $900 million solar project near San Antonio. Photo via Getty Images.

Construction is underway on a new 600-megawatt solar project in Texas that will supply renewable energy to Meta Platforms Inc., the owner of Facebook, Instagram and other tech platforms.

Calgary-based Enbridge Inc., whose gas transmission and midstream operations are based in Houston, announced that Meta has agreed to purchase 100 percent of the power generated by its new $900 million solar project known as Clear Fork.

The clean energy developed at Clear Fork will be used to support Meta’s data center operations, according to a news release from Enbridge. Meta has had net-zero emissions across its operational portfolio since 2020, according to its 2024 environmental report. The company matches 100 percent of its data center usage with renewable energy.

"We are thrilled to partner with Enbridge to bring new renewable energy to Texas and help support our operations with 100% clean energy, " Urvi Parekh, Head of Global Energy at Meta, said in a news release.

The Clear Fork project is expected to be operational by the summer of 2027. It will join Enbridge’s first solar power project in Texas, Orange Grove, which was activated earlier this year, as well as the company’s Sequoia solar project, which is scheduled to go online in early 2026.

"Clear Fork demonstrates the growing demand for renewable power across North America from blue-chip companies who are involved in technology and data center operations," Matthew Akman, executive vice president of corporate strategy and president of power at Enbridge, said in the news release. "Enbridge continues to advance its world-class renewables development portfolio using our financial strength, supply chain reach and construction expertise under a low-risk commercial model that delivers strong competitive returns."

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