Texas outpaced all other states in various categories of power generation in 2024, according to a new report from Ember, an energy think tank. File photo

The winds of change in power generation are sweeping through Texas.

Texas outpaced all other states in various categories of power generation in 2024, according to a new report from Ember, an energy think tank. The report shows:

  • Texas contributed more (12 terawatt-hours) to the country’s 64 terawatt-hour rise in solar generation last year than any other state.
  • Texas installed more solar (7.4 gigawatts) and battery (3.9 gigawatt) capacity than any other state.
  • Texas installed more utility-scale battery capacity (3.9 gigawatts) than any other state.
  • Texas saw the second biggest increase (eight terawatt-hours) in natural gas generation in 2024. Only Virginia, at 10 terawatt-hours, ranked higher.
  • Texas ranked second among the states for the biggest drop in production of coal-fueled power (6.07 terawatt-hours), preceded only by Wyoming (6.3 terawatt-hours).

Overall, coal represented 14 percent of power generation in Texas last year, with the combination of wind and solar at 30 percent, according to the report. Across the U.S., says the report, wind and solar generated more electricity than coal for the first time. Coal generation made up just 15% of U.S. electricity generation in 2024.

“The shift away from coal has been primarily driven by market dynamics and availability of more cost-effective resources,” the report says. “The unit costs of wind and solar have reduced significantly and their quick installation makes them commercially attractive.”

Citing data like the figures published by Ember, Texas Gov. Greg Abbott champions Texas as the “Energy Capital of the World,” a title that Houston also claims.

“As Texas continues to experience unprecedented growth, we will remain a leader in energy while also bolstering the Texas grid to meet the growing demands of our great state,” Abbott said in 2024.

SMT Energy is expected to bring a new battery storage facility online next year to support the ERCOT grid. Photo via Getty Images

$135 million in funding secured for new Houston battery storage facility

battery expansion

Boulder, Colorado-based SMT Energy has secured $135 million in funding for a 160-megawatt battery energy storage facility, dubbed SMT Houston IV, according to an announcement.

The new facility will work to support the ERCOT grid by providing access to stored energy. The project is expected to be online by 2026 and store and dispatch enough electricity to power 8,800 homes in Texas annually.

Macquarie and KeyBanc Capital Markets were joint lead arrangers in a $100 million project financing facility. Macquarie's Commodities and Global Markets business will also provide a preferred equity investment and are mandated to sell the project's investment tax credits of approximately $62 million, according to SMT. KeyBanc will also act as a financial advisor to SMT.

North Carolina-based battery energy storage integrator FlexGen Power Systems will obtain equipment for the project. The project will also use FlexGen's energy management system software. The software provides site integration, site control and advanced analytics insights to maximize the availability and operating ranges of battery energy storage assets.

"FlexGen is proud to partner with SMT Energy on the deployment of the SMT Houston IV project, which will deliver critical services to the dynamic ERCOT power grid," Jason Abiecunas, Executive Vice President of Business Development with FlexGen said in the release.

In 2023, SMT Energy and joint venture partner SUSI Partners announced plans to add 10 battery storage projects to Texas, doubling capacity from 100 megawatts to 200 megawatts in the Houston and Dallas areas. SMT has a 2 gigawatt per hour pipeline of battery energy storage projects in ERCOT and Southwest Power Pool targeted for commercial operation by 2030, according to the release.

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

Report: Texas solar power, battery storage helped stabilize grid in summer 2024, but challenges remain

by the numbers

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.

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CultureMap Emails are Awesome

Tesla sales tumble 13% as Musk backlash, competition and aging lineup turn off buyers

Tesla Talk

Tesla sales fell 13% in the first three months of the year, another sign that Elon Musk’s once high-flying electric car company is struggling to attract buyers.

The double-digit drop is likely due to a combination of factors, including its aging lineup, competition from rivals and a backlash from Musk’s embrace of right wing politics. It also is a warning that the company’s first-quarter earnings report later this month could disappoint investors.

Tesla reported deliveries of 336,681 globally in the January to March quarter. The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives.

Analysts polled by FactSet expected much higher deliveries of 408,000.

Dan Ives of Wedbush said in a note to clients that Tesla is seeing soft demand in the United States and China, as well as facing pressure in Europe.

“The brand crisis issues are clearly having a negative impact on Tesla...there is no debate,” he said.

Ives said that Wall Street financial analysts knew the first-quarter figures were likely to be bad, but that it was even worse than expected, calling them a “disaster on every metric.”

The sales drop came three weeks after President Donald Trump held an extraordinary press conference outside the White House in which he praised Tesla, blasted boycotts against the company and bought a Tesla himself while TV cameras rolled in an effort to help lift sales.

“I don’t like what’s happening to you,” said Trump, before slipping into a red Model S and exclaiming, “Wow. That’s beautiful.”

After falling as much as 6% in early Wednesday, Tesla stock shot up more than 5% in afternoon trading after a report from Politico, citing anonymous sources, that Musk may soon step down from leadership of his Department of Government Efficiency, the cost-cutting group that has led to tens of thousands of federal workers losing their jobs.

Tesla investors have complained the DOGE work has diverted Musk's focus from Tesla, where he is the CEO. On Tuesday, New York City's comptroller overseeing pension funds down $300 million this year on Tesla holdings called for a lawsuit accusing a distracted Musk of "driving Tesla off a financial cliff.”

Tesla’s stock has plunged by roughly half since hitting a mid-December record as expectations of a lighter regulatory touch and big profits with Donald Trump as president were replaced by fear that the boycott of Musk's cars and other problems could hit the company hard.

Analysts are still not sure exactly how much the fall in sales is due to the protests or other factors. Electric car sales have been sluggish in general, and Tesla in particular is suffering as car buyers hold off from buying its bestselling Model Y while waiting for an updated version.

Still, even bullish financial analysts who earlier downplayed the backlash to Musk’s polarizing political stances are acknowledging that it is hurting the company, something that Musk also recently acknowledged.

“This is a very expensive job,” Musk said at a Wisconsin rally on Sunday, referring to his DOGE role. “My Tesla stock and the stock of everyone who holds Tesla has gone roughly in half."

The protests come as the Austin, Texas electric vehicle maker faces fierce competition from other EV makers offering vastly improved models, including those of BYD. The Chinese EV giant unveiled in March a technology that allows it cars to charge up in just five to eight minutes.

Tesla is expected to report earnings of 48 cents per share for the first quarter later this month, up 7% from a year earlier, according to a survey of financial analysts who the car company by research firm FactSet.

Nearly all of Tesla’s sales in the quarter came from the smaller and less-expensive Models 3 and Y, with the company selling less than 13,000 more expensive models, which include X and S as well as the Cybertruck.

Houston Energy and Climate Startup Week announces 2025 dates, key events

comeback tour

Six local organizations focused on the energy transition have teamed up to bring back Houston Energy and Climate Startup Week.

The second annual event will take place Sept. 15-19, according to an announcement. The Ion District will host many of the week's events.

Houston Energy and Climate Startup Week was founded in 2024 by Rice Alliance for Technology and Entrepreneurship, Halliburton Labs, Greentown Labs, Houston Energy Transition Initiative (HETI), Digital Wildcatters and Activate.

“Houston Energy and Climate Startup Week was created to answer a fundamental question: Can we achieve more by working together than we can alone?” Jane Stricker, senior vice president at the Greater Houston Partnership and executive director of HETI, said in the release.

So far, events for the 2025 Houston Energy and Climate Startup Week include an introduction to climatetech accelerator Activate's latest cohort, the Rice Alliance Energy Tech Venture Forum, a showcase from Greentown Labs' ACCEL cohort, and Halliburton Labs Pitch Day.

Houston organizations New Climate Ventures and Digital Wildcatters, along with Global Corporate Venturing, are slated to offer programming again in 2025. And new partners, Avatar Innovations and Decarbonization Partners, are slated to introduce events. Find a full schedule here.

Other organizations can begin entering calendar submissions starting in May, according to the release.

Last year, Houston Energy and Climate Startup Week welcomed more than 2,000 attendees, investors and industry leaders to more than 30 events. It featured more than 100 speakers and showcased more than 125 startups.

"In 2024, we set out to build something with lasting impact—rooted in the ingenuity of Houston’s technologists and founders. Thanks to a collaborative effort across industry, academia, and startups, we’ve only just begun to showcase Houston’s strengths and invite others to be part of this movement," Stricker added in the release. "We can’t wait to see the city rise to the occasion again in 2025.”

Dow aims to power Texas manufacturing complex with next-gen nuclear reactors

Clean Energy

Dow, a major producer of chemicals and plastics, wants to use next-generation nuclear reactors for clean power and steam at a Texas manufacturing complex instead of natural gas.

Dow's subsidiary, Long Mott Energy, applied Monday to the U.S. Nuclear Regulatory Commission for a construction permit. It said the project with X-energy, an advanced nuclear reactor and fuel company, would nearly eliminate the emissions associated with power and steam generation at its plant in Seadrift, Texas, avoiding roughly 500,000 metric tons of planet-warming greenhouse gas emissions annually.

If built and operated as planned, it would be the first U.S. commercial advanced nuclear power plant for an industrial site, according to the NRC.

For many, nuclear power is emerging as an answer to meet a soaring demand for electricity nationwide, driven by the expansion of data centers and artificial intelligence, manufacturing and electrification, and to stave off the worst effects of a warming planet. However, there are safety and security concerns, the Union of Concerned Scientists cautions. The question of how to store hazardous nuclear waste in the U.S. is unresolved, too.

Dow wants four of X-energy's advanced small modular reactors, the Xe-100. Combined, those could supply up to 320 megawatts of electricity or 800 megawatts of thermal power. X-energy CEO J. Clay Sell said the project would demonstrate how new nuclear technology can meet the massive growth in electricity demand.

The Seadrift manufacturing complex, at about 4,700 acres, has eight production plants owned by Dow and one owned by Braskem. There, Dow makes plastics for a variety of uses including food and beverage packaging and wire and cable insulation, as well as glycols for antifreeze, polyester fabrics and bottles, and oxide derivatives for health and beauty products.

Edward Stones, the business vice president of energy and climate at Dow, said submitting the permit application is an important next step in expanding access to safe, clean, reliable, cost-competitive nuclear energy in the United States. The project is supported by the Department of Energy’s Advanced Reactor Demonstration Program.

The NRC expects the review to take three years or less. If a permit is issued, construction could begin at the end of this decade, so the reactors would be ready early in the 2030s, as the natural gas-fired equipment is retired.

A total of four applicants have asked the NRC for construction permits for advanced nuclear reactors. The NRC issued a permit to Abilene Christian University for a research reactor and to Kairos Power for one reactor and two reactor test versions of that company's design. It's reviewing an application by Bill Gates and his energy company, TerraPower, to build an advanced reactor in Wyoming.

X-energy is also collaborating with Amazon to bring more than 5 gigawatts of new nuclear power projects online across the United States by 2039, beginning in Washington state. Amazon and other tech giants have committed to using renewable energy to meet the surging demand from data centers and artificial intelligence and address climate change.