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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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UH report projects $1T in new midstream infrastructure needed to power AI era

midstream report

A new study from the University of Houston estimates that the U.S. will need more than $1 trillion in new midstream energy infrastructure investment by 2052 to meet the rising energy demands from data centers in the age of artificial intelligence.

According to the report, this would average $40 billion to $48 billion per year across investments in natural gas, oil, natural gas liquids, hydrogen and CO2 infrastructure.

UH, in collaboration with the INGAA Foundation and Wood and ESMIA Consultants, released the 2025 North American Midstream Infrastructure Report, which details the needs, pipelines and associated infrastructure necessary to meet global market needs and increased energy demands. UH led the consortium that conducted the analysis. Paul Doucette, hydrogen program officer at UH, served as the principal investigator of the report.

According to the U.S. Department of Energy, data center energy consumption could reach 800 terawatt-hours annually by 2050, a roughly 167 percent increase from 300 terawatt-hours in 2025. Meanwhile, electricity generation from all energy sources is projected to reach 5,858 terawatt-hours in 2052, a 27 percent increase over current levels.

The report proposes two routes to meeting this level of demand.

The first scenario is a reference case based on current federal, state and provincial policies as of April 1, 2025. The second option presents a low-carbon scenario. The report concludes that natural gas would need to remain a “foundational component of the region’s energy system” in both scenarios.

“Meeting energy demand is a critical challenge right now, and this report quantifies the necessary midstream infrastructure and corresponding development dollars needed to meet that demand,” Hebe Shaw, executive director of the INGAA Foundation, said in a news release. “Meeting the energy needs of North America will require sustained investment and development, which must begin now to ensure a safe, reliable and affordable energy system.”

The report also identified several key midstream infrastructure requirements, including:

  • 103,000 miles of new natural gas gathering pipelines
  • 37,000 miles of additional natural gas transmission pipelines, which includes approximately 33,800 miles in the United States
  • 24 million jobs over 25 years

The report adds that hydrogen, carbon capture, utilization, and storage (CCUS), and other decarbonization strategies can help meet infrastructure needs.

UH released a condensed version of the report here.

10+ must-attend Houston energy events happening in Q3 2026

Must-attend meetings

Editor's note: Q3 is here, and with it, a full slate of must-attend events for Houston energy professionals. On the agenda are exciting exhibitions, expos, week-long happenings, and more. Mark your calendars for these top Houston energy transition events taking place July to September 2026, and begin registering today. Please note: this article may be updated to include additional events.

July 15-16: Downstream USA Conference & Exhibition

Now in its 14th year, Reuters Events: Downstream USA 2026 brings together 3,000+ decision‑makers from refining, chemicals, petrochemicals, EPCs, technology providers, and more. Join the industry’s largest and most influential downstream gathering, which features more than 160 exhibition spaces to connect owner-operators and solution providers through interactive, peer-led session formats and onstage discussions.

This event begins July 15 at George R. Brown Convention Center. Register here.

July 24: Chevron Innovation Competition

The University of Houston presents the 5th Annual Chevron Innovation Commercialization Competition, a dynamic event that empowers students to transform cutting-edge energy research into real-world solutions. This event is sponsored by Chevron and coordinated by UH Energy.

The elimination round takes place July 24 at 2 pm. Find details here.

August 17-20: IMAGE '26

Co-hosted by SEG and AAPG, the International Meeting for Applied Geoscience and Energy event (IMAGE '26) is the world’s premier gathering for geoscientists, energy professionals, and industry leaders to connect and innovate. A global audience from all sectors of geosciences and energy come together in Houston to collaborate and network through a comprehensive technical program with more than 1,100 presentations, engaging panel discussions, hands-on workshops and courses, and a unique exhibition experience.

This event begins August 17 at George R. Brown Convention Center. Register here.

August 18-19: AVEVA Day Energy & EPC

AVEVA Day Energy & EPC brings together 400+ leaders and experts from the oil & gas, energy, chemicals, and EPC industries. Attendees will connect with peers facing similar challenges, learn from real customer stories, and discover how companies are accelerating operations with AI and industrial intelligence.

This event begins August 18 at Westin Houston Memorial City. Register here.

August 26-27: Texas Energy Forum 2026

Organized by U.S. Energy Stream, the 2026 conference will focuses on the theme, "AI Runs on Texas Energy: How Texas and Alberta Are Powering the AI Revolution." The forum brings together U.S. Senators, members of Congress, senior government officials, and leaders from the energy, technology, manufacturing, and financial sectors for candid discussions on the energy, infrastructure, and technological advancements required to power the AI revolution and strengthen American competitiveness.

This event begins August 26 at the Petroleum Club of Houston. Register here.

September 13-18: Houston Energy & Climate Week

Houston Energy & Climate Week is a six-day gathering that welcomes an unparalleled selection of global energy leaders and communities to the energy capital of the world for a full slate of events, from tech tours and networking to a climatetech summit and digital symposium.

This event kicks off September 13 and continues for six days. Find details here.

September 14-18 Houston Energy + Climate Startup Week

Launched in 2024, the official Houston Energy and Climate Startup Week returns for its third year, showcasing how Houston is developing and scaling real solutions by meeting growing global energy demand while reducing carbon emissions. Join leading energy and climate venture capital investors, industry leaders, and startups from around the world for this showcase of the most innovative companies and technologies that are transforming the energy industry while driving a sustainable, low-carbon energy future.

This event kicks off September 14 and continues all week. Find details here.

September 20-23: 2026 Geothermal Rising Conference

Geothermal Rising Conference is the industry’s flagship annual conference, reflecting the global nature of the geothermal industry while highlighting the width and breadth of the community. The conference offers technical, policy, and market sessions, educational seminars, tours of geothermal and renewable energy projects, and numerous networking opportunities. An additional expo showcases projects, services, and state-of-the-art technology and equipment for the geothermal community.

This event begins September 20 at Marriott Marquis Houston. Register here.

September 22-23: 2026 API Offshore Safe Lifting Conference & Expo

The 2026 API Offshore Safe Lifting Conference & Expo is your opportunity to see the latest offshore developments while sharing experiences, practices, and even information on real-life incidents. The 2026 program features two full days of technical sessions, regulatory insights, and networking focused on advancing offshore lifting safety, with keynotes, emerging technologies, and multiple networking opportunities.

This event begins September 22 at the Royal Sonesta Houston Galleria. Register here.

September 22-24: Intelligent Asset Management in Energy Summit

The Intelligent Asset Management in Energy Summit is the premier North American event dedicated to helping energy leaders unlock the full potential of their assets through advanced analytics, predictive maintenance, and integrated digital strategies. The 2026 summit will cover how innovative asset management solutions can reduce downtime, optimize performance, and deliver measurable ROI in a rapidly evolving energy landscape.

This event begins September 22 at Norris Conference Center. Register here.

Houston startup secures $5M to turn oilfield wastewater into critical minerals

fresh funding

Houston-based startup Altillion has secured $5 million in seed funding to accelerate the commercialization of its proprietary IRIS and ALIX technologies, which convert oilfield-produced water into valuable minerals.

San Francisco-based EIC Rose Rock and Houston-based Flathead Forge led the round. Altillion says the funding will go toward pilot facilities and commercial deployments as the company looks to scale in the U.S.

“Altillion’s efficient and scalable technologies are needed more than ever to reshape critical mineral recovery and facilitate beneficial use of oilfield brines,” Jay Keener, Altillion’s CEO and co-founder, said in a news release. “We’re uniquely positioned to provide a stable, domestic supply of the critical minerals needed for electronics, batteries, healthcare and national defense technologies. This investment from EIC Rose Rock and Flathead Forge enables us to strategically accelerate this impact and is very timely given the current geopolitical dynamics.”

Altillion's IRIS and ALIX platforms extract minerals like iodine, lithium and copper from oilfield-produced water, geothermal brines and salars. This process allows companies to unlock new sources of revenue while also boosting the domestic critical minerals supply chain. The company announced earlier this summer that it will launch a feasibility project in the Permian Basin and aims to develop a path to commercial-scale implementation in the field.

“We are excited to partner with Altillion to scale and deploy these world-class technologies to access the vast wealth hidden in wastewater,” David Clouse, Managing Director of EIC Rose Rock, added in the release. “With Altillion, we’re expanding our ability to empower the energy industry to domestically source the critical minerals America needs for a robust economy and supply chain.”

Altillion was founded by Keener and COO Scott Buckwald in 2023. Keener previously founded KDH Trading, where Buckwald also serves as COO, according to his LinkedIn page.

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