Solar power met nearly 25 percent of midday electricity demand within the ERCOT grid during some of 2024's hottest summer days. Photo by Red Zeppelin/Pexels

Research from the Federal Reserve Bank of Dallas shows that solar power and battery storage capacity helped stabilize Texas’ electric grid last summer.

Between June 1 and Aug. 31, solar power met nearly 25 percent of midday electricity demand within the Electric Reliability Council of Texas (ERCOT) power grid. Rising solar and battery output in ERCOT assisted Texans during a summer of triple-digit heat and record load demands, but the report fears that the state’s power load will be “pushed to its limits” soon.

The report examined how the grid performed during more demanding hours. At peak times, between 11 a.m. and 2 p.m. in the summer of 2024, solar output averaged nearly 17,000 megawatts compared with 12,000 megawatts during those hours in the previous year. Between 6 p.m. and 9 p.m., discharge from battery facilities averaged 714 megawatts in 2024 after averaging 238 megawatts for those hours in 2023. Solar and battery output have continued to grow since then, according to the report.

“Batteries made a meaningful contribution to what those shoulder periods look like and how much scarcity we get into during these peak events,” ERCOT CEO Pablo Vegas said at a board of directors conference call.

Increases in capacity from solar and battery-storage power in 2024 also eclipsed those of 2023. In 2023 ECOT added 4,570 megawatts of solar, compared to adding nearly 9,700 megawatts in 2024. Growth in battery storage capacity also increased from about 1,500 megawatts added in 2023 to more than 4,000 megawatts added in 2024. Natural gas capacity also saw increases while wind capacity dropped by about 50 percent.

Texas’ installation of utility-scale solar surpassed California’s in the spring of last year, and jumped from 1,900 megawatts in 2019 to over 20,000 megawatts in 2024 with solar meeting about 50 percent of Texas' peak power demand during some days.

While the numbers are encouraging, the report states that there could be future challenges, as more generating capacity will be required due to data center construction and broader electrification trends. The development of generating more capacity will rely on multiple factors like price signals and market conditions that invite more baseload and dispatchable generating capacity, which includes longer-duration batteries, and investment in power purchase agreements and other power arrangements by large-scale consumers, according to the report.

Additionally, peak demand during winter freezes presents challenges not seen in the summer. For example, in colder months, peak electricity demand often occurs in the early morning before solar energy is available, and it predicts that current battery storage may be insufficient to meet the demand. The analysis indicated a 50% chance of rolling outages during a cold snap similar to December 2022 and an 80% chance if conditions mirror the February 2021 deep freeze at the grid’s current state.

The report also claimed that ERCOT’s energy-only market design and new incentive structures, such as the Texas Energy Fund, do not appear to be enough to meet the predicted future magnitude and speed of load growth.

Read the full report here.

On.Energy's new Texas battery storage portfolio will triple the company’s installed and in-construction asset base in the U.S. Photo via On.Energy

Energy storage company secures $77.6 million to continue Texas expansion

growth ahead

Energy storage developer On.Energy announced it closed $77.6 million in construction credit facilities provided by Pathward N.A. and BridgePeak Energy Capital to build its 160 Megawatt-hour Palo de Agua battery storage portfolio across the state of Texas.

The new financing will allow the Miami-based company with project development offices in Houston to continue its expansion, which already includes 80 MWh of operational assets in Houston.

“In less than 12 months, we have managed to structure project finance credit solutions for more than 240 MWh, deploying critical infrastructure to one of the country’s most volatile power markets,” On.Energy CEO Alan Cooper said in a news release.

Cooper added that the Texas project triples the company’s installed and in-construction asset base in the U.S.

On.Energy uses its proprietary On.Command energy management system to implement customized, AI-driven solutions that support grid-scale projects and peak-shaving solutions that use energy storage to reduce electricity demand during peak hours.

By 2028, the company aims to have more than 2 GWh of battery energy storage scheduled for activation across California, Texas and Mexico.

“As Texas continues its prolific energy transition, On.Energy is providing the solutions to ensure grid reliance and resilience,” Christopher Soupal, Pathward divisional president and revenue lending officer, said in a news release.

“Pathward’s multi-project construction facility with On.Energy is another example of our commitment to the U.S. renewable energy sector, and we are proud to be their lending partner.”

If we want to see real change, we need action by all parties. Photo via Getty Images

Texas vs the nation: Comparing energy grid resilience across America

guest column

The 2024 Atlantic hurricane season has proven disastrous for the United States. On July 8th, Hurricane Beryl barreled into Texas as a Category 1 storm knocking out power for nearly 3 million, causing over $2.5 billion in damages, and resulting in the deaths of at least 42 people.

More recently, Hurricanes Helene and Milton tore through the East Coast, dropping trillions of gallons of rain on Florida, Georgia, South Carolina, North Carolina, Virginia, and Tennessee, causing dams to collapse, flash flooding, trees to fall, millions of power outages, complete destruction of homes and businesses, and the deaths of hundreds.

Amidst the horror and rescue efforts, wariness of the increasing strength of natural disasters, and repeated failures of energy grids around the nation begs a few questions.

  1. Is there a version of a power grid that can better endure hurricanes, heat waves, and freezes?
  2. How does the Texas grid compare to other regional grids in the United States?
  3. What can we do to solve our power grid problems and who is responsible for implementing these solutions?

Hurricane-proof grids do not exist

There is no version of a grid anywhere in the United States that can withstand the brunt of a massive hurricane without experiencing outages.

The wind, rain, and flooding are simply too much to handle.

Some might wonder, “What if we buried the power lines?” Surely, removing the power lines from the harsh winds, rain, flying debris, and falling tree branches would be enough to keep the lights on, right?

Well, not necessarily. Putting aside the fact that burying power lines is incredibly expensive – estimates range from thousands to millions of dollars per mile buried – extended exposure to water from flood surges can still cause damage to buried lines. To pile on further, flood surges are likely to seriously damage substations and transformers. When those components fail, there’s no power to run through the lines, buried or otherwise.

Heat waves and winter freezes are a different story

During extreme weather events like heat waves or winter freezes, the strain on the grid goes beyond simple issues of generation and distribution—it’s also a matter of human behavior and grid limitations.

Building and maintaining a power grid is extremely expensive, and storing electricity is not only costly but technically challenging. Most grids are designed with little "buffer" capacity to handle peak demand moments, because much of the infrastructure sits idle during normal conditions. Imagine investing billions of dollars in a power plant or wind farm that only operates at full capacity a fraction of the time. It’s difficult to recoup that investment.

When extreme weather hits, demand spikes significantly while supply remains relatively static, pushing the grid to its limits. This imbalance makes it hard to keep up with the surge in energy usage.

At the same time, our relationship with electricity has changed—our need for electricity has only increased. We’ve developed habits—like setting thermostats to 70 degrees or lower during summer heat waves or keeping homes balmy in winter— that, while comfortable, place additional strain on the system.

Behavioral changes, alongside investments in infrastructure, are crucial to ensuring we avoid blackouts as energy demand continues to rise in the coming years.

How the Texas grid compares to other regional grids

Is the Texas grid really in worse shape compared to other regional grids around the U.S.?

In some ways, Texas is lagging and in others, Texas is a leader.

One thing you might have heard about the Texas grid is that it is isolated, which restricts the ability to import power from neighboring regions during emergencies. Unfortunately, connecting the Texas grid further would not be a one-size fits all solution for fixing its problems. The neighboring grids would need to have excess supply at the exact moment of need and have the capacity to transmit that power to the right areas of need. Situations often arise where the Texas grid needs more power, but New Mexico, Oklahoma, Arkansas, and Louisiana have none to spare because they are experiencing similar issues with supply and demand at the same time. Furthermore, even if our neighbors have some power to share, the infrastructure may not be sufficient to deliver the power where it’s needed within the state.

On the other hand, Texas is leading the nation in terms of renewable development. The Lone Star State is #1 in wind power and #2 in solar power, only behind California. There are, of course, valid concerns about heavy reliance on renewables when the wind isn’t blowing or the sun isn’t shining, compounded by a lack of large-scale battery storage. Then, there’s the underlying cost and ecological footprint associated with the manufacturing of those batteries.

Yet, the only state with more utility-scale storage than Texas is California.

In recent years, ERCOT has pushed generators and utility companies to increase their winterization efforts, incentivize the buildout of renewables and electricity storage. You might have also heard about the Texas Electricity Fund, which represents the state’s latest effort to further incentivize grid stability. Improvements are underway, but they may not be enough if homeowners and renters across the state are unwilling to set their thermostats a bit higher during extended heatwaves.

How can we fix the Texas grid?

Here’s the reality we must face – a disaster-proof, on-demand, renewable-powered grid is extremely expensive and cannot be implemented quickly. We must come to terms with the fact that the impact of natural disasters is unavoidable, no matter how much we “upgrade” the infrastructure.

Ironically, the most impactful solution out there is free and requires only a few seconds to implement. Simple changes to human behavior are the strongest tool we have at our disposal to prevent blackouts in Texas. By decreasing our collective demand for electricity at the right times, we can all help keep the lights on and prices low.

During peak hours, the cumulative effort is as simple as turning off the lights, turning the thermostat up a few degrees, and running appliances like dishwashers and laundry machines overnight.

Another important element we cannot avoid addressing is global warming. As the temperatures on the surface of the earth increase, the weather changes, and, in many cases, it makes it more volatile.

The more fossil fuels we burn, the more greenhouse gases are released into the atmosphere. More greenhouse gases in the atmosphere leads to more volatile weather. Volatile weather, in turn, contributes to extreme grid strain in the form of heat waves, winter freezes, and hurricanes. This is no simple matter to solve, because the energy needs and capabilities of different countries differ. That is why some countries around the globe continue to expand their investments in coal as an energy source, the fossil fuel that burns the dirtiest and releases the most greenhouse gases per unit.

While governments and private organizations continue to advance carbon capture, renewable, and energy storage technology efficiency, the individual could aid these efforts by changing our behavior. There are many impactful things we can do to reduce our carbon footprint, like adjusting our thermostat a few degrees, eating less red meat, driving cars less often, and purchasing fewer single-use plastics to name a few.

If we want to see real change, we need action by all parties. The complex system of generation, transmission, and consumption all need to experience radical change, or the vicious cycle will only continue.

———

Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

TotalEnergies has started up two new solar farms in Texas. Photo by Red Zeppelin/Pexels

TotalEnergies powers up its largest utility-scale solar farms in Texas

ready to shine

TotalEnergies has begun the commercial operations of two utility-scale solar farms with integrated battery storage located in southeast Texas.

The two farms are located in Cottonwood and Danish Fields, which is TotalEnergies’ largest solar farm in the United States.

“The start-ups of Danish Fields and Cottonwood in the fast-growing ERCOT market showcase TotalEnergies’ ability to deliver competitive renewable electricity to support our clients’ decarbonization goals, as well as our own,” Olivier Jouny, senior vice president of renewables at TotalEnergies, says in a news release.

The new projects have a combined capacity of 1.2 gigawatts. They are part of a portfolio of renewable assets totaling 4 gigawatts in operation or under construction currently in Texas. Danish Fields holds a capacity of 720 megawatts peak and 1.4 million ground-mounted photovoltaic panels.

Cottonwood, with a capacity of 455 megawatts peak featuring over 847,000 ground-mounted photovoltaic panels, will also feature 225 megawatt hours of battery storage supplied by Saft. This is scheduled for commissioning in 2025. The electricity production is contracted under long-term PPAs indexed to “merchant prices through an upside-sharing mechanism with LyondellBasell and Saint-Gobain,” per thenews release. The deal is to help support the companies’ decarbonization efforts.

Seventy percent of Danish’s solar capacity has been contracted through long-term Corporate Power Purchase Agreements signed with Saint-Gobain, which feature an upside sharing mechanism indexed on merchant price. The other 30 percent is intended to support the decarbonization of TotalEnergies’ industrial plants in the Gulf Coast region. The projects will cover the electricity consumption of TotalEnergies’ industrial sites in Port Arthur and La Porte in Texas, and Carville in Louisiana, which include Myrtle Solar that was commissioned in 2023 and the under-construction Hill 1 solar farm.

In addition to the solar farms, TotalEnergies has also added 1.5 gigawatt of flexible power production capacity with three gas-fired power plants they acquired in Texas.

“Thanks to these projects, we are delighted to take another step in delivering our strategy across the entire value chain, from power generation to customer delivery, in order to achieve our profitability target of 12 (percent return on average capital employed) in our Integrated Power business,” Jouny adds in the release.

Primergy says Gemini is the biggest solar-and-storage duo in the U.S. Photo via primergysolar.com

Houston firm's portfolio co. goes online with solar, energy storage facility in Nevada

powering on

A portfolio company of Quinbrook Infrastructure Partners, an energy-focused investment manager with U.S. offices in Houston and New York, has flipped the switch on its solar power and battery energy storage system in Nevada’s Mojave Desert.

The portfolio company, Oakland, California-based Primergy Solar, says its Gemini Solar + Storage project near Las Vegas is now fully operational.

Gemini’s 1.8 million solar panels can generate up to 690 megawatts of power, enough to meet 10 percent of Nevada’s peak power demand. The panels are paired with 380 megawatts of four-hour battery storage.

“Gemini creates a blueprint for holistic and innovative clean energy development at mega scale, and we are proud to have brought this milestone project to life and to have delivered so many positive impacts across job creation, environmental stewardship, and local community engagement,” David Scaysbrook, co-founder and managing partner of Quinbrook, says in a news release.

Primergy says Gemini is the biggest solar-and-storage duo in the U.S.

“Achieving full commercial operations marks a significant technical and financial milestone for our team. We successfully navigated challenging supply chain and inflation issues through proactive planning and collaboration to bring this project online,” Primergy CEO Ty Daul says.

Primergy develops, owns, and operates utility-scale solar power and battery storage projects across the U.S. It manages projects in several U.S. energy markets, including the one served by the Electric Reliability Council of Texas (ERCOT).

As Gemini was taking shape, Primergy and Quinbrook closed on $1.9 billion in debt and tax equity financing for construction and development.

In October 2022, APG, the largest pension asset manager in the Netherlands, acquired a 49 percent ownership stake in Gemini on behalf of pension fund client ABP.

In April 2024, the remaining 51 percent share of the project was acquired by the $600 million Quinbrook Valley of Fire Fund. Funds associated with Blackstone Strategic Partners and Ares Management Infrastructure Secondaries were the lead investors.

Sysco recently took delivery of 10 heavy-duty, electric-powered trucks for its Houston operations. Photo via LinkedIn

Sysco introduces new fleet of electric trucks at Houston operations

ev moves

Houston-based food distributor Sysco is helping fuel the future of electric vehicles.

Sysco recently took delivery of 10 heavy-duty, electric-powered trucks for its Houston operations. With this delivery, Sysco now operates nearly 120 electric vehicles (EVs) around the world.

In 2023, Sysco unveiled its first EV hub, which is in Riverside, California. The hub will eventually feature:

  • 40 electric-powered refrigerated trailers
  • 40 electric-powered semi-trucks
  • 40 charging stations

The hub also will include 4 megawatt-hours of battery storage and 1.4 additional megawatts of solar power generation.

Aside from Houston and Riverside, Sysco uses EVs in Baltimore; Boston; Baltimore; Denver; Long Island, New York; Los Angeles; and Fremont, California. Its EV fleet extends to Canada, Sweden, and the United Kingdom.

Sysco announced in 2021 that it planned to operate nearly 800 electric-powered semi-trucks by 2026. Houston Freightliner is a partner in this initiative.

In all, Sysco aims to electrify 35 percent of its U.S. tractor fleet.

Around the world, EVs are contributing to Sysco’s goal of reducing direct emissions by 27.5 percent by 2030.

“We are proud of our progress to scale our electric truck fleet and continue our journey to meet our climate goal,” Neil Russell, chief administrative officer at Sysco, says in a news release. “This work is important to many of our customers who have also set goals to reduce emissions.”

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Houston oil and gas producer expands into renewables, announces new Baytown facility

Renewables News

Houston American Energy Corp. (NYSE: HUSA), an oil and gas exploration and production company, has entered into a definitive agreement to acquire New York-based Abundia Global Impact Group LLC, which specializes in converting waste into high-value fuels and chemicals.

HUSA is expected to close on the AGIG acquisition early in the second quarter and says the deal aims to provide value through “innovation in the renewable energy sector,” according to a news release.

As part of the deal, HUSA will acquire 100% of AGIG’s issued and outstanding units. HUSA will also issue to AGIG’s members a number of shares of HUSA common stock that will equal 94 percent of HUSA’s aggregate issued and outstanding common stock at the time of the closing. The company also closed a $4.42 million registered direct offering in January.

“AGIG has developed a commercially ready project for converting waste into valuable fuels and chemicals, and this transaction gives HUSA shareholders a ready-made platform and project pipeline for future value generation,” Peter Longo, CEO of Houston American Energy Corp, said in a news release. “We are witnessing the growing momentum of the fuel and chemical industry’s transformation into alternative solutions like recycled chemical alternatives and the highly publicized sustainable aviation fuel market.”

AGIG will build its first advanced plastic recycling facility in the Cedar Port Industrial Park in the Baytown area of Houston. The facility will represent the first phase of a growth plan aimed at scaling AGIG’s technologies for producing renewable fuels and chemicals from waste, according to the company. The Cedar Port facility will serve as a hub for a five-year development plan and will be designed to scale production capacity.

"We are excited to use this platform to support the deployment and development of our suite of technologies that will assist in the evolution of fuel, chemical and waste markets, providing commercial alternatives and sustainable products,” AGIG CEO Ed Gillespie said in a news release.

Supreme Court confronts what to do with growing pile of nuclear waste

The Debate Continues

The Supreme Court will hear arguments Wednesday in a fight over plans to store nuclear waste at sites in rural Texas and New Mexico.President Joe Biden's administration and a private company with a license for the Texas facility appealed a ruling by the 5th U.S. Circuit Court of Appeals that found that the Nuclear Regulatory Commission exceeded its authority in granting the license. The outcome of the case will affect plans for a similar facility in New Mexico roughly 40 miles away.

On this issue, President Donald Trump's administration is sticking with the views of its predecessor, even with Texas Gov. Greg Abbott, a Republican ally of Trump, on the other side.

The push for temporary storage sites is part of the complicated politics of the nation’s so far futile quest for a permanent underground storage facility.

Here's what to know about the case.

Where is spent nuclear fuel stored now?

Roughly 100,000 tons of spent fuel, some of it dating from the 1980s, is piling up at current and former nuclear plant sites nationwide and growing by more than 2,000 tons a year. The waste was meant to be kept there temporarily before being deposited deep underground.

A plan to build a national storage facility northwest of Las Vegas at Yucca Mountain has been mothballed because of staunch opposition from most Nevada residents and officials.

The Nuclear Regulatory Commission has said that the temporary storage sites are needed because existing nuclear plants are running out of room. The presence of the spent fuel also complicates plans to decommission some plants, the Justice Department said in court papers.

Where would it go?

The NRC granted the Texas license to Interim Storage Partners LLC for a facility that could take up to 5,000 metric tons of spent nuclear fuel rods from power plants and 231 million tons of other radioactive waste. The facility would be built next to an existing dump site in Andrews County for low-level waste, such as protective clothing and other material that has been exposed to radioactivity. The Andrews County site is about 350 miles west of Dallas, near the Texas-New Mexico state line.

The New Mexico facility would be in Lea County, in the southeastern part of the state near Carlsbad. The NRC gave a license for the site to Holtec International.

The licenses would allow for 40 years of storage, although opponents contend the facilities would be open indefinitely because of the impasse over permanent storage.

Political opposition is bipartisan

Republicans and Democrats, environmental groups and the oil and gas industry all oppose the temporary sites.

Abbott is leading Texas' opposition to the storage facility. New Mexico Democratic Gov. Michelle Lujan Grisham also is opposed to the facility planned for her state.

A brief led by Republican Texas Sen. Ted Cruz on behalf of several lawmakers calls the nuclear waste contemplated for the two facilities an “enticing target for terrorists” and argues it's too risky to build the facility atop the Permian Basin, the giant oil and natural gas region that straddles Texas and New Mexico.

Elected leaders of communities on the routes the spent fuel likely would take to New Mexico and Texas also are opposed.

What are the issues before the court?

The justices will consider whether, as the NRC argues, the states forfeited their right to object to the licensing decisions because they declined to join in the commission’s proceedings.

Two other federal appeals courts, in Denver and Washington, that weighed the same issue ruled for the agency. Only the 5th Circuit allowed the cases to proceed.

The second issue is whether federal law allows the commission to license temporary storage sites. Opponents are relying on a 2022 Supreme Court decision that held that Congress must act with specificity when it wants to give an agency the authority to regulate on an issue of major national significance. In ruling for Texas, the 5th Circuit agreed that what to do with the nation’s nuclear waste is the sort of “major question” that Congress must speak to directly.

But the Justice Department has argued that the commission has long-standing authority to deal with nuclear waste reaching back to the 1954 Atomic Energy Act.

CERAWeek 2025 returns to Houston featuring U.S. energy policy leaders

coming soon

CERAWeek by S&P Global will bring together energy leaders from around the world for its 43rd annual conference next week, March 10–14, at the Hilton Americas Houston.

U.S. Secretary of Energy Chris Wright and U.S. Secretary of the Interior Doug Burgum will headline the conference with plenary addresses focused on strengthening global energy security.

Wright’s company, Liberty Energy, is also an investor in Houston-based geothermal company Fervo Energy. Burgum also chairs the newly formed White House National Energy Dominance Council and was previously the governor of North Dakota.

"We are very pleased to welcome Secretary Wright to CERAWeek as he leads the Department of Energy and guides U.S. energy policy with the tremendous array of responsibilities that affect American national and energy security," Daniel Yergin, conference chair and Vice Chairman of S&P Global said in a news release. "His insights on the future of U.S. energy policy will be an important and timely contribution to critical dialogues at this year's conference about the technological, market and geopolitical factors that are shaping the global energy landscape."

Yergin added in a separate release: "As the cabinet secretary responsible for federal lands and resources and chairman of the National Energy Dominance Council, (Burgum’s) views on U.S. energy policy and security have tremendous impact. Moreover, he brings in-depth experience of having been governor of a major energy-producing state. His participation will be a timely and important addition to the critical dialogues taking place at this year's conference."

This year, CERAWeek will zero in on the theme “Moving Ahead: Energy strategies for a complex world,” and will consider how changes in policy, technology and geopolitics are reshaping the energy landscape.

Some of the speakers include:

  • Mike Wirth, chairman and CEO of Chevron Corp.
  • Laurence D. Fink, founder, chairman and CEO of BlackRock
  • Murray Auchincloss, CEO of bp plc
  • Vicki Hollub, president and CEO of Oxy
  • Ryan Lance, chairman and CEO of ConocoPhillips
  • Wael Sawan, CEO of Shell
  • Lorenzo Simonelli, chairman and CEO of Baker Hughes
  • John Hess, CEO of Hess Corporation
  • Scott Kirby, CEO of United Airlines
  • And many others

CERAWeek's key themes this year tackle power, grid and electrification, renewables and low-carbon fuels, the capital transition, innovation technology, climate and sustainability and others topics.

The CERAWeek Innovation Agora track, which is the program's deeper dive into technology and innovation will feature thought leadership "transformational technology platforms in energy and adjacent industries ranging across AI, decarbonization, low carbon fuels, cybersecurity, hydrogen, nuclear, mining and minerals, mobility, automation, and more," according to the release.

The "Agora Hubs" will return and will focus on climate, carbon and new energies.

The 2024 CERAWeek addressed topics like funding the energy transition, geothermal energy, AI and more. Registration for 2025 is available now.