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.

A new white paper from the University of Houston cautions that Texas faces a potential electricity shortfall of up to 40 gigawatts annually by 2035 if the grid doesn’t expand. Photo courtesy UH.

New UH white paper details Texas grid's shortfalls

grid warning

Two University of Houston researchers are issuing a warning about the Texas power grid: Its current infrastructure falls short of what’s needed to keep pace with rising demand for electricity.

The warning comes in a new whitepaper authored by Ramanan Krishnamoorti, vice president of energy and innovation at UH, and researcher Aparajita Datta, a Ph.D candidate at UH.

“As data centers pop up around the Lone Star State, electric vehicles become more commonplace, industries adopt decarbonization technologies, demographics change, and temperatures rise statewide, electricity needs in Texas could double by 2035,” a UH news release says. “If electrification continues to grow unconstrained, demand could even quadruple over the next decade.”

Without significant upgrades to power plants and supporting infrastructure, Texas could see electricity shortages, rising power costs and more stress on the state’s grid in coming years, the researchers say. The Electric Reliability Council of Texas (ERCOT) grid serves 90 percent of the state.

“Texas, like much of the nation, has fallen behind on infrastructure updates, and the state’s growing population, diversified economy and frequent severe weather events are increasing the strain on the grid,” Datta says. “Texas must improve its grid to ensure people in the state have access to reliable, affordable, and resilient energy systems so we can preserve and grow the quality of life in the state.”

The whitepaper’s authors caution that Texas faces a potential electricity shortfall of up to 40 gigawatts annually by 2035 if the grid doesn’t expand, with a more probable shortfall of about 27 gigawatts. And they allude to a repeat of the massive power outages in Texas during Winter Storm Uri in February 2021.

One gigawatt of electricity can power an estimated 750,000 homes in Texas, according to the Texas Solar + Storage Association.

The state’s current energy mix includes 40 percent natural gas, 29 percent wind, 12 percent coal, 10 percent nuclear and eight percent solar, the authors say.

Despite surging demand, 360 gigawatts of solar and battery storage projects are stuck in ERCOT’s queue, according to the researchers, and new natural gas plants have been delayed or withdrawn due to supply chain challenges, bureaucratic delays, policy uncertainties and shifting financial incentives.

Senate Bill 6, recently signed by Gov. Greg Abbott, calls for demand-response mandates, clearer rate structures and new load management requirements for big users of power like data centers and AI hubs.

“While these provisions are a step in the right direction,” says Datta, “Texas needs more responsive and prompt policy action to secure grid reliability, address the geographic mismatch between electricity demand and supply centers, and maintain the state’s global leadership in energy.”

A new report from the Department of Energy says the risk of power blackouts will be 100 times greater in 2030. Photo via Getty Images.

DOE report warns of widespread power blackouts by 2030 amid grid challenges

grid report

Scheduled retirements of traditional power plants, dependence on energy sources like wind and solar, and the growth of energy-gobbling data centers put the U.S. — including Texas — at much greater risk of massive power outages just five years from now, a new U.S. Department of Energy report suggests.

The report says the U.S. power grid won’t be able to sustain the combined impact of plant closures, heavy reliance on renewable energy, and the boom in data center construction. As a result, the risk of power blackouts will be 100 times greater in 2030, according to the report.

“The status quo of more [plant] retirements and less dependable replacement generation is neither consistent with winning the AI race and ensuring affordable energy for all Americans, nor with continued grid reliability … . Absent intervention, it is impossible for the nation’s bulk power system to meet the AI growth requirements while maintaining a reliable power grid and keeping energy costs low for our citizens,” the report says.

Avoiding planned shutdowns of traditional energy plants, such as those fueled by coal and oil, would improve grid reliability, but a shortfall would still persist in the territory served by the Electric Reliability Council of Texas (ERCOT), particularly during the winter, the report says. ERCOT operates the power grid for the bulk of Texas.

According to the report, 104 gigawatts of U.S. power capacity from traditional plants is set to be phased out by 2030. “This capacity is not being replaced on a one-to-one basis,” says the report, “and losing this generation could lead to significant outages when weather conditions do not accommodate wind and solar generation.”

To meet reliability targets, ERCOT would need 10,500 megawatts of additional “perfect” capacity by 2030, the report says. Perfect capacity refers to maximum power output under ideal conditions.

“ERCOT continues to undergo rapid change, and supply additions will have a difficult time keeping up with demand growth,” Brent Nelson, managing director of markets and strategy at Ascend Analytics, a provider of data and analytics for the energy sector, said in a release earlier this summer. “With scarcity conditions ongoing and weather-dependent, expect a volatile market with boom years and bust years.”
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.

Enbridge Inc. is now generating 130 megawatts of energy from its Orange Grove solar project near Corpus Christi. Photo courtesy Enbridge

Enbridge activates first solar power project in Texas

power on

Canadian energy company Enbridge Inc., whose gas transmission and midstream operations are based in Houston, has flipped the switch on its first solar power project in Texas.

The Orange Grove project, about 45 miles west of Corpus Christi, is now generating 130 megawatts of energy that feeds into the grid operated by the Electric Reliability Council of Texas (ERCOT). ERCOT supplies electricity to 90 percent of the state.

Orange Grove features 300,000 solar panels installed on more than 920 acres in Jim Wells County. Construction began in 2024.

Telecom giant AT&T has signed a long-term power purchase agreement with Enbridge to buy energy from Orange Grove at a fixed price. Rather than physically acquiring this power, though, AT&T will receive renewable energy certificates. One renewable energy certificate represents the consumption of one megawatt of grid power from renewable energy sources such as solar and wind.

“Orange Grove is a key part of our commitment to develop, construct, and operate onshore renewable projects across North America,” Matthew Akman, executive vice president of corporate strategy and president of renewable power at Enbridge, said in 2024.

Orange Grove isn’t Enbridge’s only Texas project. Enbridge owns the 110-megawatt Keechi wind farm in Jacksboro, about 60 miles northwest of Fort Worth, and the 249.1-megawatt Chapman Ranch wind farm near Corpus Christi, along with a majority stake in the 203.3-megatt Magic Valley I wind farm near Harlingen. The company’s 815-megawatt Sequoia solar project, east of Abilene, is scheduled to go online in early 2026. Enbridge has signed long-term power purchase agreements with AT&T and Toyota North America for energy produced by Sequoia.

During a recent earnings call, Enbridge President and CEO Greg Ebel said that given the “unprecedented demand for power generation across North America,” driven largely by explosive growth in the data center sector, the company expects to unveil more renewable energy projects.

“The policy landscape for renewables is dynamic,” Ebel said, “but we think we are well-positioned with our portfolio of late-stage (projects).”

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Greentown Labs names first head of philanthropy

new hire

Greentown Labs has named its first-ever head of philanthropy in an "all hands on deck" move to advance philanthropic support for climatetech ventures.

Stacey Harris will join the clean energy incubator and brings more than 15 years of experience to the role, having led major partnerships at organizations like Make-A-Wish International, Movember, Net Impact and the Greater Phoenix Economic Council, according to a release from Greentown.

Harris will be based out of Greentown's Boston-area incubator but will support both its Texas and Massachusetts locations. Greentown maintains headquarters in Houston and Somerville, Massachusetts.

“Stacey brings national reach, local roots, and the entrepreneurial spirit we need,” Georgina Campbell Flatter, CEO of Greentown, said in the release. “She understands that philanthropy isn’t just about raising funds—it’s about building a movement, sustaining an ecosystem, and accelerating change together.”

In her new role, Harris will be tasked with designing and leading a philanthropic strategy that aligns with Greentown's corporate partnerships.

The incubator said in the release that Harris's hire is coming at a "pivotal moment," and the organization is "calling for all hands on deck" to support the clean energy space. "This includes inspiring states and local governments to lean in, individuals and family offices to step up, foundations to mobilize resources, and industry to invest boldly," the release states.

"Philanthropy has the unique power to accelerate innovation where it matters most—by backing the people and ideas that can change the world,” Harris added in the release. “At Greentown, I see an incredible opportunity to partner with local communities in Massachusetts and Texas, while also mobilizing catalytic funds that fuel entrepreneurs globally. I’m energized to work across donors, foundations, and industry to ensure these founders have what they need to go further, faster—together.”

Harris is the latest in a series of new hires for Greentown.

Lawson Gow, founder of The Cannon co-working space and former managing partner at Helium Capital, was named Greentown's Head of Houston in July. Flatter was also named as the organization's new CEO in February, after Naheed Malik was named its new CFO in January.

Houston companies team up on $700M floating solar projects in Texas

float on

Diamond Infrastructure Solutions has given Third Pillar Solar exclusive rights to access Diamond’s Texas reservoirs for the possible launch of utility-scale floating solar installations. Both companies are based in the Houston area.

The potential investment in the floating solar project exceeds $700 million, and the project is expected to generate up to 500 megawatts of solar energy.

“Our agreement with Third Pillar marks a bold step forward in how we think about infrastructure and sustainability. By transforming underutilized water surfaces into clean energy assets, Diamond is advancing its commitment to innovation while delivering long-term value,” Ed Noack, CEO of Diamond Infrastructure Solutions, said in the release.

Dow Chemical Co. and a fund directed by Macquarie Asset Management announced the formation of Diamond in 2024. Dow holds a majority stake in Diamond, which owns Gulf Coast infrastructure used by Dow and other industrial customers at five locations in Texas and Louisiana.

The solar installations are scheduled to be built and in operation by the end of the decade.

The agreement between Diamond and Three Pillar “demonstrates the growing appetite for utility-scale energy solutions and highlights how floating solar can enhance and transform the value of existing infrastructure, all while providing cost-competitive energy, preserving agricultural land, reducing evaporation losses, and existing out of public view,” Jaimeet Gulati, CEO of Third Pillar, added in the realease.

Founded in 2022 and majority-owned by renewable energy investor Glentra Capital, Third Pillar develops, owns and operates floating photovoltaic solar installations. The installations are designed to float in places such as wastewater lagoons, reclaimed sand and gravel pits and industrial reservoirs. Third Pillar’s development pipeline contains more than 60 projects.

Rice Alliance names participants in 22th annual energy forum

where to be

The Rice Alliance for Technology and Entrepreneurship has named the 100 energy technology ventures that will convene next month at the 22nd annual Rice Alliance Energy Tech Venture Forum, as part of the second annual Houston Energy and Climate Startup Week.

Half of the startups, which hail from nine countries and 19 states, will pitch during the event, which culminates in the annual recognition of the “Most Promising Companies." The 12 companies that were named to Class 5 of the Rice Alliance Clean Energy Accelerator will present during Demo Day to wrap up their 10-week program.

In addition to pitches, the event will also host keynotes from Arjun Murti, partner of energy macro and policy at Veriten, and Susan Schofer, partner at HAX and chief science officer at SOSV. Panels will focus on corporate innovation and institutional venture capital. Attendees can also participate in one-on-one office hours with founders and investors.

The forum will take place Sept. 18 at Rice University’s Jones Graduate School of Business.

The 2025 presenting companies include:

  • Aeromine Technologies
  • AlumaPower
  • Ammobia
  • Aqua-Cell Energy
  • Aquafortus
  • Aquora Biosystems
  • Arculus Solutions
  • Artemis Production Solutions
  • AtmoSpark Technologies
  • AtoMe
  • Badwater Alchemy
  • C+UP
  • Carbon Blade
  • Circul8 Energy & Environment
  • CO2 Lock
  • Direct C
  • DirectH2
  • Ekona Power
  • Exum Instruments
  • Fathom Storage
  • Flyscan Systems
  • Geokiln Energy Innovation
  • Glint Solar
  • Hive Autonomy
  • Horne Technologies
  • Hydrogenious LOHC Maritime
  • Innowind Energy Solutions
  • Iron IQ
  • Kewazo
  • LiNova Energy
  • Lukera Energy
  • Lydian
  • Mcatalysis
  • Metal Light
  • Mithril Minerals
  • Moment Energy
  • Moonshot Hydrogen
  • Muon Vision
  • PolyQor
  • Polystyvert dba UpSolv
  • Precision Additive
  • RapiCure Solutions
  • Resollant
  • SiriNor
  • Skyven Technologies
  • Sperra
  • SpiroPak
  • Sweetch Energy
  • Teverra
  • Utility Global
  • Xplorobot

Companies participating in office hours include:

  • Active Surfaces
  • Advanced Reactor Technologies
  • Advanced Thermovoltaic Systems
  • Ai Driller
  • Airbridge
  • Airworks Compressors
  • Austere Environmental
  • Brint Tech
  • CarbonX Solutions
  • Cavern Energy Storage
  • Celadyne Technologies
  • CERT Systems
  • CubeNexus
  • Deep Anchor Solutions
  • Ellexco
  • Emerald Battery Labs
  • Equipt.ai
  • FAST Metals
  • FieldMesh
  • FlowCellutions
  • Fluidsdata
  • GrapheneTX
  • GS VORTEX SYSTEMS
  • Installer
  • Kanin Energy
  • MacroCycle Technologies
  • Modular MOPU
  • NANOBORNE
  • NetForwards
  • Oxylus Energy
  • PetroBricks
  • PHNXX
  • RASMAG Energy
  • RedShift Energy
  • RENASYS
  • RenewCO2
  • Resonantia Diagnostics
  • Respire Energy
  • Safety Radar
  • SeaStock
  • Secant Fuel
  • SolGrapH
  • Stratos Perception
  • Terraflow Energy
  • Think Energy Holdings
  • Turnover Labs
  • Utiltyx
  • Zenthos Energy

Find information about the full day of events here, or click here to register.