Untapped potential: The role of residential energy management in Texas

Guest Column

Despite its high energy production, Texas has had more outages than any other state over the past five years due to the increasing frequency and severity of extreme weather events and rapidly growing demand. Photo via Getty Images

Texas stands out among other states when it comes to energy production.

Even after mass rolling blackouts during Winter Storm Uri in 2021, the Lone Star State produced more electricity than any other state in 2022. However, it also exemplifies how challenging it can be to ensure grid reliability. The following summer, the state’s grid manager, the Electrical Reliability Council of Texas (ERCOT), experienced ten occasions of record-breaking demand.

Despite its high energy production, Texas has had more outages than any other state over the past five years due to the increasing frequency and severity of extreme weather events and rapidly growing demand, as the outages caused by Hurricane Beryl demonstrated.

A bigger storm is brewing

Electric demand is poised to increase exponentially over the next few years. Grid planners nationwide are doubling their five-year load forecast. Texas predicts it will need to provide nearly double the amount of power within six years. These projections anticipate increasing demand from buildings, transportation, manufacturing, data centers, AI and electrification, underscoring the daunting challenges utilities face in maintaining grid reliability and managing rising demand.

However, Texas can accelerate its journey to becoming a grid reliability success story by taking two impactful steps. First, it could do more to encourage the adoption of distributed energy resources (DERs) like residential solar and battery storage to better balance the prodigious amounts of remote grid-scale renewables that have been deployed over the past decade. More DERs mean more local energy resources that can support the grid, especially local distribution circuits that are prone to storm-related outages. Second, by combining DERs with modern demand-side management programs and technology, utilities can access and leverage these additional resources to help them manage peak demand in real time and avoid blackout scenarios.

Near-term strategies and long-term priorities

Increasing electrical capacity with utility-scale renewable energy and storage projects and making necessary electrical infrastructure updates are critical to meet projected demand. However, these projects are complex, resource-intensive and take years to complete. The need for robust demand-side management is more urgent than ever.

Texas needs rapidly deployable solutions now. That’s where demand-side management comes in. This strategy enables grid operators to keep the lights on by lowering peak demand rather than burning more fossil fuels to meet it or, worse, shutting everything off.

Demand response, a demand-side management program, is vital in balancing the grid by lowering electricity demand through load control devices to ensure grid stability. Programs typically involve residential energy consumers volunteering to let the grid operator reduce their energy consumption at a planned time or when the grid is under peak load, typically in exchange for a credit on their energy bill. ERCOT, for example, implements demand responseand rate structure programs to reduce strain on the grid and plans to increase these strategies in the future, especially during the months when extreme weather events are more likely and demand is highest.

The primary solution for meeting peak demand and preventing blackouts is for the utility to turn on expensive, highly polluting, gas-powered “peaker” plants. Unfortunately, there’s a push to add more of these plants to the grid in anticipation of increasing demand. Instead of desperately burning fossil fuels, we should get more out of our existing infrastructure through demand-side management.

Optimizing existing infrastructure

The effectiveness of demand response programs depends in part on energy customers' participation. Despite the financial incentive, customers may be reluctant to participate because they don’t want to relinquish control over their AC. Grid operators also need timely energy usage data from responsive load control technology to plan and react to demand fluctuations. Traditional load control switches don’t provide these benefits.

However, intelligent residential load management technology like smart panels can modernize demand response programs and maximize their effectiveness with real-time data and unprecedented responsiveness. They can encourage customer participation with a less intrusive approach – unlocking the ability for the customer to choose from multiple appliances to enroll. They can also provide notifications for upcoming demand response events, allowing the customer to plan for the event or even opt-out by appliance. In addition to their demand response benefits, smart panels empower homeowners to optimize their home energy and unlock extended runtime for home batteries during a blackout.

Utilities and government should also encourage the adoption of distributed energy resources like rooftop solar and home batteries. These resources can be combined with residential load management technology to drastically increase the effectiveness of demand response programs, granting utilities more grid-stabilizing resources to prevent blackouts.

Solar and storage play a key role

During the ten demand records in the summer of 2023, batteries discharging in the evening helped avoid blackouts, while solar and wind generation covered more than a third of ERCOT's daytime load demand, preventing power price spikes.

Rooftop solar panels generate electricity that can be stored in battery backup systems, providing reliable energy during outages or peak demand. Smart panels extend the runtime of these batteries through automated energy optimization, ensuring critical loads are prioritized and managed efficiently.

Load management technology, like smart panels, enhances the effectiveness of DERs. In rolling blackouts, homeowners with battery storage can rely on smart panels to manage energy use, keeping essential appliances operational and extending stored energy usability. Smart panels allow utilities to effectively manage peak demand, enabling load flexibility and preventing grid overburdening. These technologies and an effective demand response strategy can help Texans optimize the existing energy capacity and infrastructure.

A more resilient energy future

Texas can turn its energy challenges into opportunities by embracing advanced energy management technologies and robust demand-side strategies. Smart panels and distributed energy resources like solar and battery storage offer a promising path to a resilient and efficient grid. As Texans navigate increasing electricity demands and extreme weather events, these innovations provide hope for a future where reliable energy is accessible to all, ensuring grid stability and enhancing the quality of life across the state.

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Kelly Warner is the CEO of Lumin, a responsive energy management solutions company.

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Texas energy startup closes $200M round to fund first factory in the state

fresh funding

Base Power, an Austin-based startup that provides battery-powered home energy services and just entered the Houston market, has raised $200 million in series B funding.

The money will help finance the construction of Base Power’s first factory in Texas. A site for the factory hasn’t been announced. The cash will also go toward the national expansion of Base Power’s services.

Andreessen Horowitz, Lightspeed Venture Partners and Valor Equity Partners co-led the round, with participation from existing investors such as Thrive Capital, Altimeter, Terrain, and Trust.

As part of the fundraising, Lee Fixel of Addition and Antonio Gracias of Valor Equity Partners are joining Base Power’s board of directors.

Last year, the startup landed $68 million in a series A funding round.

Base Power, founded in 2023, specializes in developing battery storage for energy that it provides to residential customers. Its partners include homebuilder Lennar and the Bandera Electric Cooperative, which supplies power to customers in seven Hill Country counties. Earlier this year it began serving the Houston-area territory serviced by CenterPoint Energy.

“Our rapid expansion has allowed us to power up thousands of Texans in just a few months, while driving their energy costs down and power reliability up,” Zach Dell, co-founder and CEO of Base Power, says in a news release. “With this investment, we will continue to innovate on new grid solutions, establish our domestic manufacturing capabilities, and accelerate adoption nationally.”

Dell’s father is Austin tech billionaire Michael Dell. He founded the company with Justin Lopas.

Houston cleantech company expands into China with hydrogen energy pilot

going global

Hydrogen-based clean energy technology company HNO International has announced its first foray into the Chinese market.

The company, which is building a state-of-the-art hydrogen production and refueling facility in Katy, has entered into an agreement with renewable energy company Zhuhai Topower New Energy Co., according to a release. This initiative includes a pilot deployment of HNOI’s Scalable Hydrogen Energy Platform, or SHEP, in China.

“Partnering with Zhuhai Topower represents a significant milestone in our mission to expand the global reach of our hydrogen production and refueling solutions,” Don Owens, Chairman and CEO of HNO International, said in the news release.

The collaboration plans to use HNO’s innovative SHEP technology to install hundreds of low-cost modular hydrogen production and refueling infrastructure projects, according to the company. HNO’s SHEP hydrogen energy system is known to require less than 3,000 square feet of space to operate while producing 5,000 kilograms of hydrogen per day.

Both companies plan to set a precedent for scalable and sustainable energy solutions in China.

Zhuhai Topower has investments totaling $340.63 million in new energy holdings for power generation, including a 100-megawatt wind power project and a 50-megawatt photovoltaic power generation project.

“This collaboration not only underscores the versatility of our SHEP technology, but also aligns with our commitment to supporting sustainable energy initiatives worldwide,” Owens added in the news release.

Rice University and UH labs team up to improve emerging carbon capture technique

new findings

A team of researchers led by professors from two Houston universities has discovered new methods that help stabilize an emerging technique known as carbon dioxide reduction reaction, or CO2RR, that is used for carbon capture and utilization processes.

The team led by Rice University’s Haotian Wang, associate professor in chemical and biomolecular engineering, and Xiaonan Shan, associate professor of electrical and computer engineering at University of Houston, published its findings in a recent edition of the journal Nature Energy.

CO2RR is an emerging carbon capture and utilization technique where electricity and chemical catalysts are used to convert carbon dioxide gas into carbon-containing compounds like alcohols, ethylene, formic acids or carbon monoxide, according to a news release from Rice. The result can be used as fuels, chemicals or as starting materials to produce other compounds.

The technology is used in commercial membrane electrode assembly (MEA) electrolyzers to convert carbon dioxide into valuable compounds, but the technology isn’t perfected. A significant challenge in CO2RR technology has been the accumulation of bicarbonate salt crystals on the backside of the cathode gas diffusion electrode and within the gas flow channels. The salt precipitates block the flow of carbon dioxide gas through the cathode chamber, which reduce the performance and can cause a failure of the electrolyzers.

The goal in the study was to understand why and how bicarbonate salts form during this reaction. The Rice and UH teams worked together using operando Raman spectroscopy, which is a technique that allows researchers to study the structure of materials and any precipitates that adhere to them while the device is functioning.

“By utilizing operando Raman spectroscopy and optical microscopy, we successfully tracked the movement of bicarbonate-containing droplets and identified their migration pattern,” Shan said in the release. “This provided us the information to develop an effective strategy to manage these droplets without interrupting system stability.”

Next, the team worked to prevent the salt crystals from forming. First, they tested lowering the concentration of cations, like sodium or potassium, in the electrolyte to slow down the salt formation. This method proved to be effective.

They also coated the cathode with parylene, a synthetic polymer that repels water, like Teflon, which also notably improved the stability of the electrolyzer and prevented salt accumulation.

“Inspired by the waxy surface of the lotus leaf which causes water droplets to bead up and roll off, carrying off any dirt particles with it and leaving the leaf’s surface clean, we wondered if coating the gas flow channel with a nonstick substance will prevent salt-laden droplets from staying on the surface of the electrodes for too long and, therefore, reduce salt buildup.” Wang said in the release.

According to Wang, these relatively simple discoveries can extend the operational lifespan of CO2RR systems from a few hundred hours to over 1,000 hours.

The findings also have major implications for commercial applications, Shan added.

“This advancement paves the way for longer-lasting and more reliable (CO2RR) systems, making the technology more practical for large-scale chemical manufacturing,” Shan said in the release. “The improvements we developed are crucial for transitioning CO2 electrolysis from laboratory setups to commercial applications for producing sustainable fuels and chemicals.”

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