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Expert on powering Texas: The promise and challenges of renewable energy

Guest Column

Texas must confront the growing gap between renewable potential and real-time reliability. Photo via Getty Images

Texas leads the nation in wind and solar energy, but that leadership is being tested as a surge in project cancellations raises new concerns about the future of renewables in the state.

While Texas clean energy has grown significantly in recent years, solar and wind often fall short of meeting peak electricity demand. As extreme weather, rising demand, and project cancellations strain the grid, Texas must confront the growing gap between renewable potential and real-time reliability.

Solar and Wind Energy

Solar generation in the Lone Star State has grown substantially over the past decade. The Texas solar industry is estimated to employ over 12,000 Texans and is contributing billions in local tax revenue and landowner income, and solar and storage are the largest sources of new energy on the Texas grid.

With a significant number of sunny days, Texas’ geography also enables it to be among the states with the greatest energy potential for solar power generation. Further moving to advance the use of solar energy generation, the 89th Texas legislature passed SB 1202 which accelerates the permitting process for home solar and energy storage installations. SB 1202 empowers homeowners to strengthen their own energy security and supports greater grid resilience across the state.

Texas has also led the United States in wind energy production for more than 17 years, with 239 wind-related projects and over 15,300 wind turbines, which is more than any other state. The economic impact of wind energy in Texas is substantial, with the industry contributing $1.7 billion a year to the state’s gross domestic product. With wind electric power generation jobs offering an average annual wage of $109,826, the growing sector provides lucrative employment opportunities.

However, solar and wind currently struggle to meet Texas’ peak electricity demand from 5 pm to 7 pm — a time when millions of residents return home, temperatures remain high and air conditioner use surges. Solar generation begins to decline just as demand ramps up, and wind production is often inconsistent during these hours. Without sufficient long-duration storage or dispatchable backup power, this mismatch between supply and demand presents a significant reliability risk — one that becomes especially urgent during heat waves and extreme weather events, as seen during ERCOT conservation alerts.

Geothermal Energy

Geothermal energy uses heat from beneath the Earth’s surface to provide reliable, low-emission power with minimal land use and no fuel transport. Though it currently supplies a small share of energy, Texas is emerging as a leader in its development, supported by state leaders, industry, and environmentalists. During the 89th legislative session, Texas passed HB 3240 to create a Geothermal Energy Production Policy Council, set to begin work on September 1, 2025.

In 2024, Sage Geosystems was selected to develop geothermal projects at the Naval Air Station in Corpus Christi, expanding its work with the Department of Defense. In partnership with the Environmental Security Technology Certification Program, Sage is using its proprietary Geopressured Geothermal Systems technology to evaluate the potential for geothermal to be a source of clean and consistent energy at the base.

One limitation of geothermal energy is location. Deep drilling is costly, and areas with high water tables, like some coastal regions, may not be viable.

Hydroelectric Energy

While hydropower plays a minor role in Texas’ energy mix, it is still an essential energy source. Its output depends on water availability, which can be affected by seasonal and long-term changes like droughts.

Texas has 26 hydropower plants with a total capacity of nearly 738 megawatts, serving about 2.9 million people as of 2019. Harris County holds 43% of all hydropower generation jobs in the state, and in 2021, hydroelectric power generation contributed $700 million to Texas’ gross domestic product.

Federal funding is helping expand hydropower in Texas. The Southwestern Power Administration has committed about $103 million to support infrastructure, including $32 million for upgrades to Central Texas’s Whitney Dam. The 2021 Inflation Reduction Act added $369 billion in tax credits for clean energy, supporting dam retrofits nationwide. In 2022, the Department of Energy launched over $28 million in new funding through the Infrastructure Law to help meet national clean energy goals by 2035 and carbon neutrality by 2050.

Tidal Energy

Driven by the moon and sun, tidal energy is predictable but limited to coastal areas with strong tides. Although Texas has modest tidal potential, research is ongoing to optimize it. Texas A&M University is developing a floating test platform for hybrid renewable systems, integrating tidal, wave, wind, and solar energy. In addition, St. Mary’s University in San Antonio is prototyping small-scale tidal turbines using 3D printing technology.

While commercial tidal power remains in the research phase, the state’s offshore capabilities, engineering talent, and growing university-led innovation could make it a player in hybrid marine renewable systems. Floating platforms that integrate wave, tide, solar, and wind offer a compelling vision for offshore power generation suited to Texas’ unique coastal conditions.

Biomass Energy

Biomass energy is the largest renewable source worldwide, providing 55% of renewables and over 6% of global energy. While reliable, it can be less efficient, sometimes using more energy to burn the organic matter than it produces, and demand may exceed supply.

In Texas, biomass is a nominal part of the state’s energy portfolio. However, substantial research is being conducted by Texas A&M University to attempt to convert algae and food waste into a cost-efficient source of biomass material. In addition, UK-based biomass and renewable energy company Drax opened its North American headquarters in Houston, which created more than 100 new jobs in Texas’ renewable energy industry.

It’s clear that renewable energy is playing an increasingly important role in shaping Texas’ energy future. But the road ahead demands a realistic view: while these sources can reduce emissions and diversify our generation mix, they do not yet solve for peak load reliability — especially during the critical 5 pm to 7 pm window when grid stress is highest.

Meeting that challenge will require not just investment in renewables, but also innovation in grid-scale storage, flexible generation, market reform and consumer programs. A diversified, resilient energy portfolio — one that includes renewables and reliable dispatchable sources — will be the key to ensuring that Texas remains powered, prepared and prosperous for generations to come.

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

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Texas' energy demand will nearly double by 2030, says ERCOT. Photo via Getty Images

Guest column: How growing energy demand will impact the Texas grid

Guest Column

Although Texas increased its power supply by 35% over the last four years, a recent report from ERCOT predicts that Texas’ energy demand will nearly double by 2030, with power supply projected to fall short of peak demand in a worst-case scenario beginning in summer 2026. There are many factors and variables that could either increase or decrease the grid’s stability.

Homebuilding in Texas

One of the most easily identifiable challenges is that the population of Texas is continuing to grow, which places greater demand on the state’s power grid. With its booming population, the state is now the second most populous in the country.

In 2024, Texas led the nation in homebuilding, issuing 15% of the country's new-home permits in 2024. Within the first two months of 2025, Houston alone saw more than 11,000 new building permits issued. The fact that Houston is the only major metro in the United States to lack zoning laws means it does not directly regulate density or separate communities by use type, which is advantageous for developers and homebuilders, who have far fewer restrictions to navigate when constructing new homes.

Large-scale computing facilities

Another main source of the growing demand for power is large-scale computing facilities such as data centers and cryptocurrency mining operations. These facilities consume large amounts of electricity to run and keep their computing equipment cool.

In 2022, in an effort to ensure grid reliability, ERCOT created a program to approve and monitor these large load (LFL) customers. The Large Flexible Load Task Force is a non-voting body that develops policy recommendations related to planning, markets, operations, and large load interconnection processes. LFL customers are those with an expected peak demand capacity of 75 megawatts or greater.

It is anticipated that electricity demand from customers identified by ERCOT as LFL will total 54 billion kilowatt-hours (kWh) in 2025, which is up almost 60% from the expected demand in 2024. If this comes to fruition, the demand from LFL customers would represent about 10% of the total forecast electricity consumption on the ERCOT grid this year. To accommodate the expected increase in power demand from large computing facilities, the state created the Texas Energy Fund, which provides grants and loans to finance the construction, maintenance, modernization, and operation of electric facilities in Texas. During this year’s 89th legislative session, lawmakers approved a major expansion of the Texas Energy Fund, allocating $5 billion more to help build new power plants and fund grid resilience projects.

Is solar power the key to stabilizing the grid?

The fastest-growing source of new electric generating capacity in the United States is solar power, and Texas stands as the second-highest producer of solar energy in the country.

On a regular day, solar power typically constitutes about 5% of the grid’s total energy output. However, during intense heat waves, when the demand for electricity spikes and solar conditions are optimal, the share of solar power can significantly increase. In such scenarios, solar energy’s contribution to the Texas grid can rise to as much as 20%, highlighting its potential to meet higher energy demands, especially during critical times of need.

While the benefits of solar power are numerous, such as reducing greenhouse gas emissions, lowering electricity bills, and promoting energy independence from the grid, it is important to acknowledge its barriers, such as:

  • Sunlight is intermittent and variable. Cloudy days, nighttime, and seasonal changes can affect energy production, requiring backup or storage solutions. Extreme weather conditions, such as hailstorms, can damage solar panels, affecting their performance and lifespan.
  • The upfront costs of purchasing and installing solar panels and associated equipment can be relatively high.
  • Large-scale solar installations may require significant land area, potentially leading to concerns about land use, habitat disruption, and conflicts with agricultural activities.
  • Integrating solar power into existing electricity grids can pose challenges due to its intermittent nature. Upgrading and modifying grids to handle distributed generation can be costly.

Although Texas has made progress in expanding its power supply, the rapid pace of population growth, homebuilding, and large-scale computing facilities presents challenges for grid stability. The gap between energy supply and demand needs to continue to be addressed with proactive planning. While solar power is a promising solution, there are realistic limitations to consider. A diversified approach that includes both renewable and traditional energy sources, along with ongoing legislative movement, is critical to ensuring a resilient energy future for Texas.

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

A major heat alert is in place for Texas. Photo via Getty Images

Heat dome moves into Texas with record highs expected

stay cool

A heat dome that has led to nearly 90 consecutive days of triple-digit temperatures in Phoenix moved into Texas Wednesday, with record highs expected to fall by the weekend, according to the National Weather Service.

Meanwhile, energy demand in Texas hit an unofficial all-time high Tuesday, according to data from the state’s grid operator.

A major heat alert is in place for Texas, reflecting what the weather service called “rare and/or long-duration extreme heat with little to no overnight relief.” An extreme heat alert was issued for eastern New Mexico.

A heat dome is a slow moving, upper-level high pressure system of stable air and a deep layer of high temperatures, meteorologist Bryan Jackson said.

“It is usually sunny, the sun is beating down, it is hot and the air is contained there,” Jackson said. “There are dozen or so sites that are setting daily records ... mostly over Texas.”

Record high temperatures were expected in cities such as Corpus Christi, San Antonio and Amarillo. In Phoenix, monsoon rains have provided brief respites since Sunday, although daytime highs continue to top 100 degrees Fahrenheit (37.8 degrees Celsius).

The dome was expected to move into western Oklahoma and eastern New Mexico beginning Saturday, then into the mid-Mississippi Valley, where it was forecast to weaken slightly, Jackson said.

About 14.7 million people are under an excessive heat warning, with heat indexes expected at 110 degrees Fahrenheit (43.3 degrees Celsius) and above. Another 10 million people were under a heat advisory.

There were 38 heat-related deaths in Texas from January through July, according to the Texas Department of State Health Services, and hundreds have already sought emergency care, according to MedStar ambulance in Fort Worth, Texas. The service responded to 286 heat-related calls during the first 20 days of August, about 14 per day, compared to about 11 per day in August 2023, according to public information officer Desiree Partain.

Austin-Travis County EMS Capt. Christa Stedman said calls about heat-related illness in the area around the Texas state Capitol since April 1 are up by about one per day compared with a year ago, though July was somewhat milder this year.

"The vast majority of what we see is heat exhaustion, which is good because we catch it before it’s heat stroke, but it’s bad because people are not listening to the red flags,” such as heat cramps in the arms, legs or stomach warning that the body is becoming too hot, Stedman said.

Despite the record heat in Texas, residents haven't been asked to cut back on their energy use like in years prior. This contrasts with the 11 conservation notices issued last year. One reason is that the agency, which manages Texas' independent energy grid and deregulated providers, has improved the grid's capabilities with the addition of more than 15 gigawatts of power supply since last summer.

Although the agency has gotten better at controlling the demands of the grid, their criteria for when to notify residents to conserve energy has also changed, Doug Lewin, an energy consultant and president of Stoic Energy said.

Lewin suspects it’s because they’re ineffective and unpopular.

“I don’t think they’re seeing all that much reduction when they give notices,” Lewin said of the Electric Reliability Council of Texas. In fact public uproar against the conservation warnings has led to the agency sending fewer of them, he continued.

“There are many factors that ERCOT operations take into consideration when determining the need to issue conservation, case by case depending on conditions at the time,” communications manager Trudi Webster said on the matter.

“It’s been a hot summer, but this one does stand out in terms of extremes,” said Jackson, the meteorologist.

Earlier this month, about 100 people were sickened and 10 were hospitalized due to extreme heat at a Colorado air show and at least two people have died due to the heat in California's Death Valley National Park.

Globally, a string of 13 straight months with a new average heat record came to an end this past July as the natural El Nino climate pattern ebbed, the European climate agency Copernicus announced Thursday.

ERCOT now estimates an extra 40,000 megawatts of growth in demand for electricity by 2030 compared with last year’s outlook. Photo via Getty Images

Eyeing demand growth, ERCOT calls for energy investments across Texas

report

With the Electric Reliability Council of Texas forecasting a big spike in demand for electricity over the next five to seven years, the operator of Texas’ massive power grid is embracing changes that it says will yield a “tremendous opportunity” for energy investments across the state.

The council, known as ERCOT, now estimates an extra 40,000 megawatts of growth in demand for electricity by 2030 compared with last year’s outlook. According to ERCOT data, 40,000 megawatts of electricity would power roughly 8 million Texas homes during peak demand.

ERCOT has been under intense scrutiny in the wake of recent summertime and wintertime debacles involving power emergencies or outages. The organization manages 90 percent of Texas’ power supply.

“As a result of Texas’ continued strong economic growth, new load is being added to the ERCOT system faster and in greater amounts than ever before,” Pablo Vegas, president and CEO of ERCOT, says in a news release. “As we develop and implement the tools provided by the prior two [legislative sessions], ERCOT is positioned to better plan for and meet the needs of our incredibly fast-growing state.”

Meeting the increased demand will create opportunities for energy investments in Texas, says ERCOT. These opportunities will undoubtedly lie in traditional energy production as well as in renewable energy segments such as solar, wind, and “green” hydrogen.

Some of the opportunities might be financed, at least in part, by the newly established Texas Energy Fund. The fund, which has been allotted $5 billion for 2025-26, will provide loans and grants for construction, maintenance, modernization, and operation of power-generating facilities in Texas.

ERCOT is also working with partners to develop tools aimed at improving grid reliability and market efficiency.

ERCOT says changes in its operations that’ll be required to fulfill heightened demand for power will position the nonprofit organization “as a significant component of the economic engine driving the national economy.”

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Investment bank opens energy-focused office in Houston

new to hou

Investment bank Cohen & Co. Capital Markets has opened a Houston office to serve as the hub of its energy advisory business and has tapped investment banking veteran Rahul Jasuja as the office’s leader.

Jasuja joined Cohen & Co. Capital Markets, a subsidiary of financial services company Cohen & Co., as managing director, and head of energy and energy transition investment banking. Cohen’s capital markets arm closed $44 billion worth of deals last year.

Jasuja previously worked at energy-focused Houston investment bank Mast Capital Advisors, where he was managing director of investment banking. Before Mast Capital, Jasuja was director of energy investment banking in the Houston office of Wells Fargo Securities.

“Meeting rising [energy] demand will require disciplined capital allocation across traditional energy, sustainable fuels, and firm, dispatchable solutions such as nuclear and geothermal,” Jasuja said in a news release. “Houston remains the center of gravity where capital, operating expertise, and execution come together to make that transition investable.”

The Houston office will focus on four energy verticals:

  • Energy systems such as nuclear and geothermal
  • Energy supply chains
  • Energy-transition fuel and technology
  • Traditional energy
“We are making a committed investment in Houston because we believe the infrastructure powering AI, defense, and energy transition — from nuclear to rare-earth technology — represents the next secular cycle of value creation,” Jerry Serowik, head of Cohen & Co. Capital Markets, added in the release.

Houston cleantech startup Helix Earth lands $1.2M NSF grant

federal funding

Renewable equipment manufacturer Helix Earth Technologies is one of three Houston-based companies to secure federal funding through the Small Business Innovation Research (SBIR) Phase II grant program in recent months.

The company—which was founded based on NASA technology, spun out of Rice University and has been incubated at Greentown Labs—has received approximately $1.2 million from the National Science Foundation to develop its high-efficiency retrofit dehumidification systems that aim to reduce the energy consumption of commercial AC units. The company reports that its technology has the potential to cut AC energy use by up to 50 percent.

"This award validates our vision and propels our impact forward with valuable research funding and the prestige of the NSF stamp of approval," Rawand Rasheed, Helix CEO and founder, shared in a LinkedIn post. "This award is a reflection our exceptional team's grit, expertise, and collaborative spirit ... This is just the beginning as we continue pushing for a sustainable future."

Two other Houston-area companies also landed $1.2 million in NSF SBIR Phase II funding during the same period:

  • Resilitix Intelligence, a disaster AI startup that was founded shortly after Hurricane Harvey, that works to "reduce the human and economic toll of disasters" by providing local and state organizations and emergency response teams with near-real-time, AI-driven insights to improve response speed, save lives and accelerate recovery
  • Conroe-based Fluxworks Inc., founded in 2021 at Texas A&M, which provides magnetic gear technology for the space industry that has the potential to significantly enhance in-space manufacturing and unlock new capabilities for industries by allowing advanced research and manufacturing in microgravity

The three grants officially rolled out in early September 2025 and are expected to run through August 2027, according to the NSF. The SBIR Phase II grants support in-depth research and development of ideas that showed potential for commercialization after receiving Phase I grants from government agencies.

However, congressional authority for the program, often called "America's seed fund," expired on September 30, 2025, and has stalled since the recent government shutdown. Government agencies cannot issue new grants until Congress agrees on a path forward. According to SBIR.gov, "if no further action is taken by Congress, federal agencies may not be able to award funding under SBIR/STTR programs and SBIR/STTR solicitations may be delayed, cancelled, or rescinded."

Mars Materials makes breakthrough in clean carbon fiber production

Future of Fiber

Houston-based Mars Materials has made a breakthrough in turning stored carbon dioxide into everyday products.

In partnership with the Textile Innovation Engine of North Carolina and North Carolina State University, Mars Materials turned its CO2-derived product into a high-quality raw material for producing carbon fiber, according to a news release. According to the company, the product works "exactly like" the traditional chemical used to create carbon fiber that is derived from oil and coal.

Testing showed the end product met the high standards required for high-performance carbon fiber. Carbon fiber finds its way into aircraft, missile components, drones, racecars, golf clubs, snowboards, bridges, X-ray equipment, prosthetics, wind turbine blades and more.

The successful test “keeps a promise we made to our investors and the industry,” Aaron Fitzgerald, co-founder and CEO of Mars Materials, said in the release. “We proved we can make carbon fiber from the air without losing any quality.”

“Just as we did with our water-soluble polymers, getting it right on the first try allows us to move faster,” Fitzgerald adds. “We can now focus on scaling up production to accelerate bringing manufacturing of this critical material back to the U.S.”

Mars Materials, founded in 2019, converts captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. Investors include Untapped Capital, Prithvi Ventures, Climate Capital Collective, Overlap Holdings, BlackTech Capital, Jonathan Azoff, Nate Salpeter and Brian Andrés Helmick.
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