Texas is known around the world for shaping energy trends, including conservation efforts. As we reflect on Earth Day this month, let’s take a closer look at where Texas is getting things right and where there is still room for improvement.
Texas is the nation’s top producer of energy across oil, gas, wind and solar power. We have built our identity on the idea of leading the world as a powerhouse for energy production, but Texas also has to deliver results to its residents and the United States; otherwise, our global leadership falls flat.
Measuring Texas’ Global Leadership
Texas is the nation’s largest energy producer, leading the U.S. in wind-powered electricity generation and rapidly expanding its solar capacity, according to the U.S. Energy Information Administration. Our state continues to lead nationally in large-scale energy investments, business-friendly policies and abundant natural resources.
Texas is not standing still or simply doing what it has always done. The state recognizes that to stay competitive, we must adapt and change. Diversification in the areas of liquefied natural gas exports and new investments in carbon and hydrogen capture are defining what the next chapter of Texas’ leadership will look like.
Energy leadership requires production, innovation and influence. Together, these will keep Texas as a formidable force in global energy production.
Our Local Texas Reality Is Important, Too
When we zoom in to look more closely at what is happening in Texas, the picture becomes a bit more nuanced. Our energy independence creates both flexibility and vulnerability, especially during major weather events such as winter storms and hurricanes.
Five years later, the effects of Winter Storm Uri remain in many of our minds. Demand for home generators has risen quickly in the state, with Houston leading the way due to grid uncertainty. As our population continues to rise quickly and more data centers are built in the state, grid stability remains a major factor in Texas’ ability to lead in energy innovation to meet the demands of residents.
ERCOT has developed a three-part plan to help mitigate the risk of grid failure during periods of extreme demand or emergencies. While this is an improvement over five years ago, Texas still needs to invest significantly in grid resiliency.
Texas’ Energy Market and Affordability
Often, proponents of our deregulated energy market in Texas hold it up as an example of healthy competition and consumer choice. Lawmakers claim that it gives residents the ability to select an energy plan that best meets their needs.
In practice, however, the market can be difficult to navigate. There are many electricity plans and providers, so residents often feel overwhelmed when navigating the energy market. With fluctuating rates, complex contracts and peak pricing structures, monthly energy bills can be surprising.
Additionally, as utility companies seek to distribute energy infrastructure costs to customers, prices are rising rapidly. According to TEPRI, electricity rates have risen by 30% since 2021, and the organization predicts an additional 29% increase by 2030.
A 60% increase in electricity prices over less than a decade will affect more than 4.1 million LMI (low- to moderate-income) households in Texas. Conservative projections by TEPRI estimate that by 2030, LMI households will pay an additional $863 annually for electricity, representing an electricity-pricing burden of 8.2%.
The energy affordability crisis is just beginning here in Texas, and greater education and proactive legislation are needed to help LMI households navigate the changing market and rising energy costs. LMI households are already choosing between paying for electricity and healthcare for their family members.
If Texas wants to remain a global leader in energy production, innovation, reliability and affordability, the rising cost of energy needs urgent attention.
Grid Resilience Is Mandatory
In addition to energy affordability, Texas frequently experiences extreme weather, making grid resilience foundational to its continued leadership in both local and global markets.
Between 1980 and 2024, Texas experienced 190 weather-related events with financial losses exceeding $ 1 billion. From hurricanes along the Gulf Coast to prolonged heat waves and drought, the state’s energy infrastructure is under increasing strain. These events necessitate that Texas invest in long-term planning and preparedness for its energy infrastructure.
Next Steps for Local Leadership
Texas needs to strengthen every part of its energy infrastructure. Leading locally means strengthening the grid by building out transmission, scaling battery storage, and deploying smarter, more responsive technology. At the same time, we need to make the market easier to navigate and ensure Texans are better educated and protected as they make energy decisions.
Additionally, as Texans become more informed about the energy landscape, it is crucial to equip them with the knowledge to use energy conservation tools such as programmable thermostats, mobile apps to monitor and adjust energy usage, shifting away from peak-hour usage and selecting energy plans without gimmicks or tricky clauses.
These important intersections are where Texas’ global leadership meets local impact in a critical time of change and transition in the Texas energy landscape.
Going Forward
Beyond addressing the critical issues of reliability and affordability at home here in Texas, it is important to recognize that they are also global. While we already export our energy products to the world, we have a unique opportunity to also export solutions in grid innovation, market design and technologies that are applicable to varied environments and markets around the world.
If we get it right, Texas will be known for not only producing energy but also for shaping how energy systems evolve globally. In order for Texas to lead both locally and globally, we need to focus on performance through smarter infrastructure, thoughtful policy and informed consumers.
Because true energy leadership isn’t just about how much we produce, it’s about performance, access and impact from Texas communities to the global stage, which is an imperative that goes far beyond Earth Day.
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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.
The new headquarters is designed as a "factory ranch" and features a solar generation plant to offset half of its power consumption. Photo via LinkedIn