Residents in Montgomery, Liberty and Hardin counties can expect to see power grid improvements in the coming years. Photo via Getty Images

Texas Gov. Gregg Abbott announced millions in funding for energy resilience projects around this state this week, with one major project set to impact the greater Houston area.

As part of the Texas Energy Fund's Outside of ERCOT Grant Program, the state announced a roughly $73 million agreement with the Sam Houston Electric Cooperative to replace and upgrade more than 9,000 electric poles and improve other equipment in Montgomery, Liberty and Hardin counties. The agreement is the first for the fund's Outside of ERCOT Grant Program, which supports state projects outside of the state's largest grid.

The multibillion-dollar Texas Energy Fund aims to "finance the construction, maintenance, and modernization of electric facilities across Texas." It was approved by voters in 2023. Other programs within the fund include the:

  • In-ERCOT Generation Loan Program
  • Completion Bonus Grant Program
  • Texas Backup Power Package Program

“The Texas Energy Fund delivers real results for Texans and strengthens the electric systems that families, businesses, and communities depend on,” Abbott said in a news release. “This grant to Sam Houston Electric Cooperative will replace thousands of vulnerable utility poles to better withstand severe weather and ensure a more reliable and resilient grid in East Texas.”

The Houston-area project, nicknamed Steel Anchor, is expected to be completed by June 2031. According to the release from the governor's office, the Sam Houston Electric Cooperative’s territory is one of the most hurricane-prone service areas in the state. The cooperative serves more than 38,000 Texas consumers

“Over the past decade, Sam Houston EC has strategically replaced poles to improve the strength of its electricity distribution system. This grant will boost the Cooperative’s ongoing grid-hardening and resiliency program,” Doug Turk, CEO of the Sam Houston Electric Cooperative, added in the release.

Following the announcement of the Sam Houston funding, Abbott's office also awarded another $200 million from the Outside of ERCOT Grant Program to upgrade approximately 700 miles of power equipment in Northeast Texas. The equipment is operated by Southwestern Electric Power Company, which serves more than 192,000 Texas consumers. The project will include improvements to 200 circuits, replacing aging copper wire with aluminum alloy conductors and replacing existing utility poles.

Additionally, the state announced its seventh Texas Energy Fund loan agreement for a 570 megawatt natural gas power plant in Sherman, Texas. The 20-year loan of up to $411 million is between the Public Utility Commission of Texas and Rayburn Electric Cooperative and is part of the fund's In-ERCOT Generation Loan Program. Rayburn will build the facility near its existing Rayburn Energy Station 1 in the Texoma region. It will connect to the ERCOT North Load Zone.

“When Texas voters overwhelmingly approved the Texas Energy Fund, they gave us a mandate to secure new, reliable power generation for Texas,” PUCT Chairman Thomas Gleeson added in a release. “The TxEF is delivering on that promise, and Rayburn Electric Cooperative’s new 570 MW power plant is proof. We are ensuring Texas families and businesses have power they can depend on for years to come.”

The Woodlands-based Lancium has licensed patents to ERCOT that help increase or decrease power consumption during peak periods or emergencies. Photo courtesy of ERCOT

Woodlands company licenses free patents to ERCOT to boost grid reliability

grid deal

Lancium, a company based in The Woodlands that specializes in infrastructure for connecting large-scale data centers to power grids, is licensing a portfolio of patents to the Electric Reliability Council of Texas (ERCOT) at no cost.

In a news release, Lancium says the intellectual property agreement “ensures ERCOT can sublicense these patents freely, thereby expanding market participation opportunities without risk of patent infringement disputes.”

“This agreement exemplifies Lancium’s dedication to supporting grid stability and innovation across the ERCOT region,” Michael McNamara, CEO of Lancium, said in a news release. “While these patents represent significant technological advancements, we believe that enabling ERCOT and its market participants to operate freely is more valuable for the long-term reliability and resilience of the Texas grid.”

The licensed patents encompass Lancium technologies that support load resources in ERCOT’s market, which covers about 90 percent of Texas. Specifically, the patents deal with controllable load resources. A controlled load resource allows ERCOT and other grids to increase or decrease power consumption during peak periods or emergencies.

ERCOT predicts power demand in Texas will nearly double by 2030, “in part due to more requests to plug into the grid from large users like data centers, crypto mining facilities, hydrogen production plants, and oil and gas companies,” The Texas Tribune reported.

CenterPoint Energy aims to complete its suite of grid resiliency projects before the 2025 hurricane season. Photo via centerpointenergy.com

CenterPoint reports progress on grid improvements ahead of 2025 hurricane season

grid resilience

As part of an ongoing process to make Houston better prepared for climate disasters, CenterPoint Energy announced its latest progress update on the second phase of the Greater Houston Resiliency Initiative (GHRI).

CenterPoint reported that it has completed 70 percent of its resiliency work and all GHRI-related actions are expected to be complete before the official start of the 2025 hurricane season.

"Our entire CenterPoint Houston Electric team is focused on completing this historic suite of grid resiliency actions before the start of hurricane season,” Darin Carroll, Senior Vice President of CenterPoint's Electric Business, said in a news release. “That is our goal, and we will achieve it. To date, we have made significant progress as part of this historic effort.”

CenterPoint’s resiliency solutions include clearing higher-risk vegetation across thousands of miles of power lines, adding thousands more automation devices capable of self-healing, installing thousands of storm-resistant poles, and undergrounding hundreds of miles of power lines.

CenterPoint's GHRI efforts, which entered a second phase in September 2024, aim to improve overall grid resiliency and reliability and are estimated to reduce outages for customers by more than 125 million minutes annually, according to the company. It has undergrounded nearly 350 miles of power lines, about 85 percent of the way toward its target of 400 miles, which will help improve resiliency and reduce the risk of outages. CenterPoint also aims to install the first of 100 new local weather monitoring stations by June 1.

In March, CenterPoint cleared 655 miles of high-risk vegetation near power lines, installed 1,215 automated reliability devices capable of self-healing, and added an additional 3,300 storm-resilient poles.

In April, CenterPoint will begin building a network of 100 new weather monitoring stations, which will provide 24/7 weather monitoring and storm response preparation.

“We will continue to work every day to complete these critical improvements as part of our company's goal of building the most resilient coastal grid in the country,” Carroll added in the release.

Georg Rute ,CEO of Gridraven, discusses the potential of AI and DLR. Photo via Getty Images

Energy expert: Unlocking the potential of the Texas grid with AI & DLR

guest column

From bitter cold and flash flooding to wildfire threats, Texas is no stranger to extreme weather, bringing up concerns about the reliability of its grid. Since the winter freeze of 2021, the state’s leaders and lawmakers have more urgently wrestled with how to strengthen the resilience of the grid while also supporting immense load growth.

As Maeve Allsup at Latitude Media pointed out, many of today’s most pressing energy trends are converging in Texas. In fact, a recent ERCOT report estimates that power demand will nearly double by 2030. This spike is a result of lots of large industries, including AI data centers, looking for power. To meet this growing demand, Texas has abundant natural gas, solar and wind resources, making it a focal point for the future of energy.

Several new initiatives are underway to modernize the grid, but the problem is that they take a long time to complete. While building new power generation facilities and transmission lines is necessary, these processes can take 10-plus years to finish. None of these approaches enables both significantly expanded power and the transmission capacity needed to deliver it in the near future.

Beyond “curtailment-enabled headroom”

A study released by Duke University highlighted the “extensive untapped potential” in U.S. power plants for powering up to 100 gigawatts of large loads “while mitigating the need for costly system upgrades.” In a nutshell: There’s enough generating capacity to meet peak demand, so it’s possible to add new loads as long as they’re not adding to the peak. New data centers must connect flexibly with limited on-site generation or storage to cover those few peak hours. This is what the authors mean by “load flexibility” and “curtailment-enabled headroom.”

As I shared with POWER Magazine, while power plants do have significant untapped capacity, the transmission grid might not. The study doesn’t address transmission constraints that can limit power delivery where it’s needed. Congestion is a real problem already without the extra load and could easily wipe out a majority of that additional capacity.

To illustrate this point, think about where you would build a large data center. Next to a nuclear plant? A nuclear plant will already operate flat out and will not have any extra capacity. The “headroom” is available on average in the whole system, not at any single power plant. A peaking gas plant might indeed be idle most of the time, but not 99.5% of the time as highlighted by the Duke authors as the threshold. Your data center would need to take the extra capacity from a number of plants, which may be hundreds of miles apart. The transmission grid might not be able to cope with it.

However, there is also additional headroom or untapped potential in the transmission grid itself that has not been used so far. Grid operators have not been able to maximize their grids because the technology has not existed to do so.

The problem with existing grid management and static line ratings

Traditionally, power lines are given a static rating throughout the year, which is calculated by assuming the worst possible cooling conditions of a hot summer day with no wind. This method leads to conservative capacity estimates and does not account for environmental factors that can impact how much power can actually flow through a line.

Take the wind-cooling effect, for example. Wind cools down power lines and can significantly increase the capacity of the grid. Even a slight wind blowing around four miles per hour can increase transmission line capacity by 30 percent through cooling.

That’s why dynamic line ratings (DLR) are such a useful tool for grid operators. DLR enables the assessment of individual spans of transmission lines to determine how much capacity they can carry under current conditions. On average, DLR increases capacity by a third, helping utilities sell more power while bringing down energy prices for consumers.

However, DLR is not yet widely used. The core problem is that weather models are not accurate enough for grid operators. Wind is very dependent on the detailed landscape, such as forests or hills, surrounding the power line. A typical weather forecast will tell you the average conditions in the 10 square miles around you, not the wind speed in the forest where the power line is. Without accurate wind data at every section, even a small portion of the line risks overheating unless the line is managed conservatively.

DLR solutions have been forced to rely on sensors installed on transmission lines to collect real-time weather measurements, which are then used to estimate line ratings. However, installing and maintaining hundreds of thousands of sensors is extremely time-consuming, if not practically infeasible.

The Elering case study

Last year, my company, Gridraven, tested our machine learning-powered DLR system, which uses a AI-enabled weather model, on 3,100 miles of 110-kilovolt and 330-kilovolt lines operated by Elering, Estonia’s transmission system operator, predicting ratings in 15,000 individual locations. The power lines run through forests and hills, where conventional forecasting systems cannot predict conditions with precision.

From September to November 2024, our average wind forecast accuracy saw a 60 percent improvement over existing technology, resulting in a 40 percent capacity increase compared to the traditional seasonal rating. These results were further validated against actual measurements on transmission towers.

This pilot not only demonstrated the power of AI solutions against traditional DLR systems but also their reliability in challenging conditions and terrain.

---

Georg Rute is the CEO of Gridraven, a software provider for Dynamic Line Ratings based on precision weather forecasting available globally. Prior to Gridraven, Rute founded Sympower, a virtual power plant, and was the head of smart grid development at Elering, Estonia's Transmission System Operator. Rute will be onsite at CERAWeek in Houston, March 10-14.

The views expressed herein are Rute's own. A version of this article originally appeared on LinkedIn.

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ExxonMobil expands Gulf Coast CCS business with Louisiana deal

carbon contract

Spring-based energy powerhouse ExxonMobil has picked up another project in the carbon capture and storage (CCS) market.

Natural gas pipeline operator Williams Cos. has tapped ExxonMobil to transport and store up to one metric ton per year of CO2 from Williams’ natural gas collection and processing plant in southwest Louisiana’s Haynesville Shale.

Williams will transport natural gas via its Louisiana Energy Gateway pipeline, then process the natural gas and deliver it to the Gulf Coast for export as liquefied natural gas (LNG). The LNG will be used in power generation, residential and commercial heating, and industrial processes.

Williams recently agreed to acquire Momentum Midstream for up to $5.5 billion to expand Williams’ LNG presence in the Haynesville Shale. Haynesville is the country’s third-largest producer of natural gas.

Once the deal closes, Williams will own a $1.5 billion project in southwest Louisiana that will expand capacity of the Transco natural gas distribution system. The system serves power and LNG-export customers. Williams will also gain over 4,000 miles of pipeline and more than one million acres.

While Williams is based in Tulsa, Oklahoma, it has a significant presence in Houston. Last month, Green Street’s Real Estate Alert reported Williams bought the 64-story, 1.4 million-square-foot Williams Tower south of The Galleria from Invesco Real Estate for more than $300 million. The company will occupy about 360,000 square feet in the skyscraper for its Houston hub.

Williams employs about 800 people in Bayou City, including roughly 700 who work at Williams Tower, and plans to hire another 100 by the end of this year.

The Williams deal is ExxonMobil’s seventh CCS contract. ExxonMobil’s CCS portfolio supports LNG, lower-carbon-intensity steel, ammonia, natural gas processing, industrial gases and methanol.

ExxonMobil has established a “carbon superhighway” along the Gulf Coast to fuel its CCS business. The company owns and operates a more than 1,300-mile CO2 pipeline system, the largest in the U.S.

“Carbon capture is becoming an increasingly important part of industrial operations, but capture alone doesn’t solve the problem of high emissions,” says ExxonMobil. “What matters next is how CO2 is transported, used, and stored.”

ExxonMobil’s CCS initiatives are aimed at capturing a chunk of the rapidly growing CCS market in the U.S. Straits Research forecasts the market will grow from $5.66 billion this year to $13.56 billion by 2034.

“It’s not every day you get to witness the birth of a new American industry, but that’s exactly what’s happening right now at the U.S. Gulf Coast,” Dominic Genetti, senior vice president of CCS at ExxonMobil, wrote in an article published last year on the company’s website.

Fervo Energy, Mercury Fund leaders named first experts in residence for TEX-E

energy mentors

Two leading companies in Houston's clean energy scene have been named the Texas Exchange for Energy & Climate Entrepreneurship's first experts in residence.

TEX-E announced this month that Houston-based geothermal unicorn Fervo Energy and venture capital firm Mercury Fund have joined the nonprofit's new Expert-in-Residence partnership. The program aims to connect TEX-E Fellows with "the people and organizations shaping the future of energy and entrepreneurship."

The 2026 TEX-E Fellows were named in June and include 67 students from six Texas universities and the Massachusetts Institute of Technology. Nineteen are from Houston universities. See the full list here.

Through the Expert-in-Residence program, fellows will be able to network and work with:

"More than anything, students need the determination and creativity to step outside of their comfort zones and tackle problems that lack clear answers. At Fervo, we've consistently bet on young people who lack traditional 'hard skills' but are willing to embrace uncertainty and learn on the job. That open-mindedness will take students far," Jewett said in a prepared statement. Fervo named Jewett as COO in June.

TEX-E was founded in 2022 through partnerships with MIT Martin Trust Center for Entrepreneurship and Greentown Labs. It works with university students from six schools: Rice University, University of Houston, Prairie View A&M University, The University of Texas at Austin, Texas A&M University and MIT.

The organization named Houston venture capital and innovation leader Sandy Guitar as its new executive director last year. Guitar previously served as general partner and managing director at Houston-based VC firm HX Venture Fund and is co-founder of Weathergage Capital.

TEX-E is known for its student track within the Energy Venture Day and Pitch Competition at CERAWeek. It awarded $50,000 to student teams from the University of Texas and Rice University. Read more here.