Beryl is lashing Houston with high winds and hard rain. Graphic via YouTube

The AP estimates the population without power in the Houston area has risen to 2 million.

Power outages are mounting along the Texas coast after Beryl came ashore on July 8 and lashed Houston with heavy rains and powerful winds as the storm moved inland.

More than 1 million homes and businesses were without power hours after Beryl made landfall, according to CenterPoint Energy in Houston. High waters quickly began to close streets across Houston and flood warnings were in effect across a wide stretch of the Texas coast.

The National Weather Service expected Beryl to weaken to a tropical storm Monday and a tropical depression Tuesday, forecasting a turn to the northeast and increase in speed Monday night and Tuesday. The storm reached the U.S. after leaving a trail of destruction over the last week in Mexico and the Caribbean.

The storm's center hit land as a Category 1 hurricane around 4 a.m. about 85 miles southwest of Houston with top sustained winds of 80 mph (128.7 kph) while moving north at 12 mph (19.3 kph), the National Weather Service reported. On Monday morning, the storm had maximum sustained winds of 75 mph (120 kph).

High waters quickly began closing roads around Houston, which was again under flood warnings after heavy storms in recent months washed out neighborhoods and knocked out power across the nation’s fourth-largest city.

More than 1,000 flights have been canceled at Houston’s two airports, according to tracking data from FlightAware.

Beryl dumped soaking rains across Houston after coming ashore and was expected to bring damaging winds into East Texas, near Louisiana, as the storm pushed north after making landfall.

“Beryl’s moving inland but this is not the end of the story yet,” said Jack Beven, senior hurricane specialist at the National Hurricane Center.

Beryl strengthened and became a hurricane again late Sunday. The storm had weakened after leaving a path of deadly destruction through parts of Mexico and the Caribbean.

A hurricane warning remains in effect for the Texas coast from Mesquite Bay north to Port Bolivar, the center said.

The storm's center is expected to move over eastern Texas on Monday and then through the lower Mississippi Valley into the Ohio Valley on Tuesday and Wednesday, the weather service said.

People on the Texas coast boarded up windows and left beach towns under an evacuation order. As the storm neared the coast Sunday, Texas officials warned of power outages and flooding but also expressed worry that not enough residents and beach vacationers in Beryl’s path had heeded warnings to leave.

“One of the things that kind of trigger our concern a little bit, we’ve looked at all of the roads leaving the coast and the maps are still green,” said Texas Lt. Gov. Dan Patrick, who is serving as the state’s acting governor while Gov. Greg Abbott is travelling overseas. “So we don’t see many people leaving.”

Tropical storm winds extended 115 miles (185 kilometers) from the center and the hurricane center warned residents to be prepared for possible flash flooding in parts of middle, upper and eastern Texas as well as Arkansas as the storm gradually turns to the north and then northeast later Monday.

Along the Texas coast, many residents and business owners took the typical storm precautions but also expressed uncertainty about the storm’s intensity.

In Port Lavaca, Jimmy May fastened plywood over the windows of his electrical supply company and said he wasn’t concerned about the possible storm surge. He recalled his business had escaped flooding in a previous hurricane that brought a 20-foot (6-meter) storm surge.

“In town, you know, if you’re in the low-lying areas, obviously, you need to get out of there,” he said.

At the nearby marina, Percy Roberts showed his neighbor Ken Waller how to properly secure his boat as heavy winds rolled in from the bay Sunday evening.

“This is actually going to be the first hurricane I’m going to be experiencing,” Waller said, noting he is a little nervous but feels safe following Roberts’ lead. “Pray for the best but expect the worst, I guess.”

The earliest storm to develop into a Category 5 hurricane in the Atlantic, Beryl caused at least 11 deaths as it passed through the Caribbean on its way to Texas. The storm ripped off doors, windows and roofs with devastating winds and storm surge fueled by the Atlantic’s record warmth.

Three times during its one week of life, Beryl has gained 35 mph (56 kph) in wind speed in 24 hours or less, the official weather service definition of rapid intensification.

Beryl’s explosive growth into an unprecedented early whopper of a storm indicates the hot water of the Atlantic and Caribbean and what the Atlantic hurricane belt can expect for the rest of the storm season, experts said.

Texas officials warned people along the entire coastline to prepare for possible flooding, heavy rain and wind. The hurricane warning extended from Baffin Bay, south of Corpus Christi, to Sargent, south of Houston.

Beryl lurked as another potential heavy rain event for Houston, where storms in recent months have knocked out power across the nation’s fourth-largest city and flooded neighborhoods. A flash flood watch was in effect for a wide swath of the Texas coast, where forecasters expected Beryl to dump as much as 10 inches (25 centimeters) of rain in some areas.

Potential storm surges between 4 and 7 feet (1.22 and 2.13 meters) above ground level were forecast around Matagorda. The warnings extended to the same coastal areas where Hurricane Harvey came ashore in 2017 as a Category 4 hurricane, far more powerful than Beryl’s expected intensity by the time the storm reaches landfall.

Those looking to catch a flight out of the area found a closing window for air travel as Beryl moved closer. Hundreds of flights from Houston’s two major commercial airports were delayed by midafternoon Sunday and dozens more canceled, according to FlightAware data.

In Corpus Christi, officials asked visitors to cut their trips short and return home early if possible. Residents were advised to secure homes by boarding up windows if necessary and using sandbags to guard against possible flooding.

The White House said Sunday that the Federal Emergency Management Agency had sent emergency responders, search-and-rescue teams, bottled water and other resources along the coast.

Several coastal counties called for voluntary evacuations in low-lying areas that are prone to flooding. Local officials also banned beach camping and urged tourists traveling on the Fourth of July holiday weekend to move recreational vehicles from coastal parks.

Beryl battered Mexico as a Category 2 hurricane last week, toppling trees but causing no injuries or deaths before weakening to a tropical storm as it moved across the Yucatan Peninsula.

Before hitting Mexico, Beryl wrought destruction in Jamaica, Barbados and St. Vincent and the Grenadines. Three people were reported dead in Grenada, three in St. Vincent and the Grenadines, three in Venezuela and two in Jamaica.

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Houston investment firm closes $105M energy venture fund

seeing green

Houston-based investment firm Veriten has announced the initial close of its second flagship energy venture fund with more than $105 million in capital commitments.

Fund II will build on Veriten’s initial fund and aim to support “scalable technology solutions for energy, power and industrial applications,” according to a company news release.

"Our differentiated network, research-driven process, and first principles approach to investing are having an impact across multiple verticals including traditional energy, electrification, and industrial technology. Fund II builds on that platform,” John Sommers, partner, investments at Veriten, added in the release. “In this environment, the differentiator isn't capital – it's all about connectivity, deep sector expertise, and an economically-driven approach. As new technologies and approaches develop at breakneck speed, the need for more reliable, affordable energy and power continues to grow dramatically. The current backdrop accentuates the need for Veriten's solution."

Veriten is supported by over 50 strategic partnerships in the energy, power, industrial and technology sectors, including major players like Halliburton and Phillips 66.

"Veriten continues to build a differentiated platform at the intersection of energy, technology and industry expertise," Jeff Miller, chairman and CEO of Halliburton, said in the release. "We were early believers in the team and their ability to identify practical solutions to real challenges across the energy value chain. As all industries increasingly adopt digital tools, automation and AI-enabled technologies to improve performance and execution, we are proud to partner with Veriten again to help accelerate high-impact solutions across the broader energy landscape."

Veriten closed its debut fund, NexTen LP, of $85 million in committed capital in October 2023. It was launched in January 2022 by Maynard Holt, co-founder and former CEO of the energy investment bank Tudor, Pickering, Holt & Co.

It has invested in Houston-based AI-powered electricity analytics provider Amperon and led a $12 million Seed 2 funding round for Houston-based Helix Technologies to scale manufacturing of its energy-efficient commercial HVAC add-on earlier this year. In the past year it has contributed to funding rounds for San Francisco-based Armada and Calgary-based Veerum.

Veriten also named Nick Morriss as its new managing director earlier this month. Morriss most recently served as vice president of business development at next-generation nuclear technology company Natura Resources and spent nearly 20 years at NOV Inc.

Houston energy expert asks: Who pays when AI outruns the power grid?

Guets Column

For most of the past 20 years, U.S. electricity policy relied on predictable trends in demand. Electricity use, in most regions, increased gradually, forecasts were stable, and utilities adjusted the system in small steps. Power plants, transmission lines, and substations were generally added to reflect shifts in load, rather than growth, and costs were recovered through modest adjustments to customer bills.

Growth in AI data centers has disrupted this model. A single facility can add as much electricity demand as a small town. That demand comes all at once, runs continuously, and has little tolerance for outages. If electricity service drops even briefly, computation stops, and services shut down. Ironically, data centers need reliable service, a point that their emergence is driving concern around for the rest of the grid.

What the numbers say

The International Energy Agency projects global electricity consumption from data centers to double by 2030, reaching roughly 945 TWh, nearly 3 percent of global electricity demand, with consumption growing about 15 percent per year this decade. McKinsey projects that U.S. data center demand alone could grow 20–25 percent per year, with global capacity demand more than tripling by 2030.

After years of roughly 0.5 percent annual demand growth, many forecasts now place total U.S. electricity demand growth closer to 2–3 percent per year through the mid-2030s, with much higher growth in specific regions. In Texas, some forecasters are saying electricity demand could double over the next five years, a staggering 10 percent per year growth rate. What sounds incremental on paper translates into a major challenge on the ground. Meeting this pace of growth is estimated to require $250–$300 billion per year in grid investment, about double what the system has been absorbing.

Where the system starts to strain

The strain appears first in the interconnection queue. It shows up as long waits, backlogs, and delays for connecting new loads and new generation.

Before new generators or large load customers can be connected, a study is required to assess their impact on the grid, whether it can physically handle the added load, and whether upgrades are required. With AI-driven data centers, utilities face far more connection requests than they can realistically support. In ERCOT, large-load interconnection requests exceed 200 gigawatts, most tied to data centers. That amount exceeds historical norms, and it is several times larger than what can be practically studied or built in the near term.

To be clear, public utility commissions are required to study these requests because they must manage system capabilities to ensure minimal disruption. This means engineers spend time evaluating projects that may never be built, while other more commercially viable projects may wait longer for approvals. This extends timelines and makes infrastructure planning less reliable.

Why policymakers are rethinking the rules

Utilities and their regulators must decide how much generation, transmission, and substation capacity to build years before it comes online. Those decisions are based on expected demand at the time projects are approved. When it comes to data centers, by the time infrastructure is completed, they may end up deploying newer, more efficient chips that use less power than originally assumed. This can result in grid infrastructure built for a higher load than what actually materializes, leaving excess capacity that still must be paid for through system-wide rates.

That’s the central dilemma. If utilities build too little capacity, the system operates with less reserve margin. During periods of grid stress, operators have fewer options, increasing the likelihood of curtailments or outages. However, if utilities build too much, customers may be asked to pay for infrastructure that is not fully used.

In response, policymakers are adjusting the rules. In some regions, regulators are moving toward bring-your-own-power approaches that require large data centers to supply or fund part of the capacity needed to serve them or reduce demand during system stress. At the federal level, permitting reforms tied to datacenter infrastructure increasingly treat electricity as a strategic economic input.

As Ken Medlock, senior director at the Baker Institute Center for Energy Studies (CES), explains:

“Many of the planned data centers are now also adding behind-the-meter options to their development plans because they do not anticipate being able to manage their needs solely from the grid, and they certainly cannot do so with only intermittent power sources.”

Behind-the-meter (BTM) refers to power that a consumer controls on its side of the utility meter, such as on-site gas generation or a dedicated power plant. These resources allow data centers to keep operating during grid-related service. Most facilities remain connected to the grid, but the backup BTM generation serves as insurance for operating their core business.

This shifts responsibility. Utilities traditionally manage reliability across all customers by maintaining an operating reserve margin, or spare capacity. Increasingly, large-load customers manage part of their own electricity reliability needs, which changes how infrastructure is planned and how risk is distributed.

Bottom line

AI-driven load growth is arriving faster and in more concentrated places than the power system was built to accommodate. Utilities and regulators are being forced to make decisions sooner than planned about where to build, how fast to build, and which customers get priority when capacity is limited. The effects extend beyond data centers, showing up in system costs, reliability margins, competition for grid access, and pressure on communities and industries that depend on affordable and dependable power. The issue is not whether electricity can be generated, but how the costs and risks of rapid demand growth are distributed as the system tries to keep up. How regulators balance these decisions will determine who pays as AI demand outruns the power grid.

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally appeared on LinkedIn.

Texas solar set to overtake coal for first time in 2026, EIA forecasts

solar on the rise

Solar power promises to shine even brighter in Texas this year.

A new forecast from the U.S. Energy Information Administration (EIA) indicates that for the first time, annual power generation from utility-scale solar will surpass annual power generation from coal across the territory covered by the Electric Reliability Council of Texas (ERCOT).

Solar generation is expected to reach 78 billion kilowatt-hours in 2026 in the ERCOT grid, compared with 60 billion kilowatt-hours for coal, the EIA forecast says. The ERCOT grid supplies power to about 90 percent of Texas, including the Houston area.

“Utility-scale solar generation has been increasing steadily in ERCOT as solar capacity additions help meet rapid electricity demand growth,” the forecast says.

Although natural gas remains the dominant source of electricity generation in ERCOT, accounting for an average 44 percent of electricity generation from 2021 to 2025, solar’s share of the generation mix rose from four percent to 12 percent. During the same period, coal’s share dropped from 19 percent to 13 percent.

EIA predicts about 40 percent of U.S. solar capacity, or 14 billion kilowatt-hours, added in 2026 will come from Texas.

Although EIA expects annual solar generation to exceed annual coal generation in 2026, solar surpassed coal in ERCOT on a monthly basis for the first time in March 2025, when solar generation totaled 4.33 billion kilowatt-hours and coal’s totaled 4.16 billion kilowatt-hours. Solar generation continued to exceed that of coal until August of that year.

“In 2026, we estimate that solar exceeded coal for the first time in March, and we forecast generation from solar installations in ERCOT will continue to exceed that from coal until December, when coal generation exceeds solar,” says EIA. “We expect solar generation to exceed that of coal for every month in 2027 except January and December.”

For 2027, EIA forecasts annual solar generation of 99 billion kilowatt-hours in the ERCOT grid, compared with 66 billion kilowatt-hours of annual coal generation.

In April, ERCOT projected almost 368 billion kilowatt-hours of demand in ERCOT’s territory by 2032. ERCOT’s all-time peak demand hit 85.5 billion kilowatt-hours in August 2023.

“Texas is experiencing exceptional growth and development, which is reshaping how large load demand is identified, verified, and incorporated into long-term planning,” ERCOT President and CEO Pablo Vegas said. “As a result of a changing landscape, we believe this forecast to be higher than expected … load growth.”