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Report: Texas solar power, battery storage helped stabilize grid in summer 2024, but challenges remain

by the numbers

Solar power met nearly 25 percent of midday electricity demand within the ERCOT grid during some of 2024's hottest summer days. Photo by Red Zeppelin/Pexels

Research from the Federal Reserve Bank of Dallas shows that solar power and battery storage capacity helped stabilize Texas’ electric grid last summer.

Between June 1 and Aug. 31, solar power met nearly 25 percent of midday electricity demand within the Electric Reliability Council of Texas (ERCOT) power grid. Rising solar and battery output in ERCOT assisted Texans during a summer of triple-digit heat and record load demands, but the report fears that the state’s power load will be “pushed to its limits” soon.

The report examined how the grid performed during more demanding hours. At peak times, between 11 a.m. and 2 p.m. in the summer of 2024, solar output averaged nearly 17,000 megawatts compared with 12,000 megawatts during those hours in the previous year. Between 6 p.m. and 9 p.m., discharge from battery facilities averaged 714 megawatts in 2024 after averaging 238 megawatts for those hours in 2023. Solar and battery output have continued to grow since then, according to the report.

“Batteries made a meaningful contribution to what those shoulder periods look like and how much scarcity we get into during these peak events,” ERCOT CEO Pablo Vegas said at a board of directors conference call.

Increases in capacity from solar and battery-storage power in 2024 also eclipsed those of 2023. In 2023 ECOT added 4,570 megawatts of solar, compared to adding nearly 9,700 megawatts in 2024. Growth in battery storage capacity also increased from about 1,500 megawatts added in 2023 to more than 4,000 megawatts added in 2024. Natural gas capacity also saw increases while wind capacity dropped by about 50 percent.

Texas’ installation of utility-scale solar surpassed California’s in the spring of last year, and jumped from 1,900 megawatts in 2019 to over 20,000 megawatts in 2024 with solar meeting about 50 percent of Texas' peak power demand during some days.

While the numbers are encouraging, the report states that there could be future challenges, as more generating capacity will be required due to data center construction and broader electrification trends. The development of generating more capacity will rely on multiple factors like price signals and market conditions that invite more baseload and dispatchable generating capacity, which includes longer-duration batteries, and investment in power purchase agreements and other power arrangements by large-scale consumers, according to the report.

Additionally, peak demand during winter freezes presents challenges not seen in the summer. For example, in colder months, peak electricity demand often occurs in the early morning before solar energy is available, and it predicts that current battery storage may be insufficient to meet the demand. The analysis indicated a 50% chance of rolling outages during a cold snap similar to December 2022 and an 80% chance if conditions mirror the February 2021 deep freeze at the grid’s current state.

The report also claimed that ERCOT’s energy-only market design and new incentive structures, such as the Texas Energy Fund, do not appear to be enough to meet the predicted future magnitude and speed of load growth.

Read the full report here.

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French energy company opens AI-focused training center in Houston

flagship facility

French multinational company Schneider Electric has opened a new 10,500-square-foot, state-of-the-art Energy Innovation Center in Houston.

The new facility is located in Houston’s Energy Corridor and is designed to “foster increased collaboration and technological advancements across the entire value chain,” according to a news release from the company. The new Houston location joins Schneider's existing innovation hubs in Paris, Singapore and Bangalore.

The venue will serve as a training center for process control engineers, production superintendents, manufacturing managers, technical leads and plant operations personnel. It can simulate various real-world scenarios in refineries, combined-cycle power plants, ethylene plants, recovery boilers and chemical reactors.

It includes an interactive control room and artificial Intelligence applications that “highlight the future of industrial automation,” according to the release.

"Digitalization is significantly enhancing the global competitiveness of the U.S. through continuous innovation and increased investment into next-generation technology," Aamir Paul, Schneider Electric's President of North America Operations, said in the release.

Texas has over 4,100 Schneider Electric employees, the most among U.S. states, and has facilities in El Paso, the Dallas-Fort Worth metroplex and other areas.

"This flagship facility in the Energy Capital of the World underscores our commitment to driving the future of software-defined automation for our customers in Houston and beyond,” Paul added in the release. “With this announcement, we are excited to continue supporting the nation's ambitions around competitive, efficient and cost-effective manufacturing."

Schneider Electric says the new Houston facility is part of its expansion plans in the U.S. The company plans to invest over $700 million in its U.S. operations through 2027, which also includes an expansion at its El Paso campus.

The company also announced plans to invest in solar and battery storage systems developed, built, and operated by Houston-based ENGIE North America last year. Read more here.

Hydrogen industry could have major impact on Texas water resources, study says

water works

Just as the data center industry thrives on electricity, the hydrogen industry thrives on water.

A new study from researchers at the University of Texas at Austin found that by 2050, new hydrogen production facilities could account for 2 percent to nearly 7 percent of water demand in the state. The impact could be especially dramatic along the Gulf Coast, where most of the state’s hydrogen production facilities are already built or are being planned.

The research was published in the journal Sustainability.

The study reported that "most existing and proposed hydrogen production infrastructures are within projected water-strained cities and counties, such as Houston in Harris County and Corpus Christi in Nueces County."

Compared with municipal water supplies or irrigation systems, the hydrogen industry’s demand for water is comparatively small, the study’s lead author, Ning Lin, an energy economist at UT’s Bureau of Economic Geology, said in a news release. But hydrogen-fueled demand could strain communities that already are grappling with current and future water shortages.

“Where you put a project can make a huge difference locally,” Lin says. “With multiple hydrogen facilities planned in water-stressed Gulf Coast counties, this study highlights the urgent need for integrated water and energy planning and provides a solid foundation to help policymakers, industry, and communities make informed decisions about hydrogen and water management.”

To forecast water demand, Lin and her colleagues crunched data from a 2024 National Petroleum Council study that estimated the regional hydrogen demand from 2030 to 2050 based on two energy policy scenarios.

As part of the study, researchers reviewed water use and water quality for various hydrogen production methods that affect whether water remaining from production can be recycled.

“In order to plan for water needs, somebody has to figure out what those future demands might look like, and this paper puts some numbers to (it) that, I think, will be very helpful,” Robert Mace, executive director of the Meadows Center for Water and the Environment at Texas State University, who was not part of the study, added in the release.

Co-founder of Houston hypersonic engine co. lands on Inc. 500 list

Ranking It

Five Houston female founders have been recognized by Inc. Magazine for their innovation, including Sassie Duggleby, the CEO and co-founder of groundbreaking space tech and engine company Venus Aerospace.

The women were named to Inc.'s Female Founders 500 list, which features female entrepreneurs based in the U.S. The group attracted approximately $9 billion in 2024 revenue and $10.6 billion in funding, according to Inc.

“Female founders know what struggle is, but they’re also experts of improvisation, adaptability, and creativity. The women featured on this year’s list exemplify these qualities," Diana Ransom, Inc. executive editor said in a release. "Through times of uncertainty, their unwavering dedication and steadfast leadership are not only inspiring but vital to driving progress.”

Venus Aerospace is the Houston-based company that is developing reusable hypersonic technology that it hopes "will revolutionize and redefine the boundaries of aviation, defense, and beyond." The company won the in the Deep Tech Business category in the 2024 Houston Innovation Awards. Duggleby also serves on the Texas Space Commission board of directors.

Duggleby is joined by four other Houston founders:

  • Stephanie Murphy, CEO and executive chairman of Aegis Aerospace, which provides space services, spaceflight product development, and engineering services. Murphy also serves on the Texas Aerospace Research and Space Economy Consortium Executive Committee.
  • Emily Cisek, founder of The Postage, now known as Paige, a comprehensive life planning and succession software platform for families and small businesses. The company won the Female-Owned Business category in the 2023 Houston Innovation Awards.
  • Margo Jordan, founder of adolescent mental health startup Enrichly, which uses AI-driven self-esteem development and behavioral insights to boost student performance.
  • Nina Magon, founder of Nina Magon Studio / Nina Magon Consumer Products, a residential and commercial interior design company.
"While I don't know many of the ladies on this list, I do know they're some of the most tenacious role models in entrepreneurship. I'm beyond honored to be included among them," Duggleby said in a LinkedIn post.
Twenty-eight Texas female founders made this list, including Kendra Scott and Allison Ellsworth, co-founder of Poppi, and many others.

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A version of this story first appeared on our sister site, InnovationMap.com.

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