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Guest column: How growing energy demand will impact the Texas grid

Guest Column

Texas' energy demand will nearly double by 2030, says ERCOT. Photo via Getty Images

Although Texas increased its power supply by 35% over the last four years, a recent report from ERCOT predicts that Texas’ energy demand will nearly double by 2030, with power supply projected to fall short of peak demand in a worst-case scenario beginning in summer 2026. There are many factors and variables that could either increase or decrease the grid’s stability.

Homebuilding in Texas

One of the most easily identifiable challenges is that the population of Texas is continuing to grow, which places greater demand on the state’s power grid. With its booming population, the state is now the second most populous in the country.

In 2024, Texas led the nation in homebuilding, issuing 15% of the country's new-home permits in 2024. Within the first two months of 2025, Houston alone saw more than 11,000 new building permits issued. The fact that Houston is the only major metro in the United States to lack zoning laws means it does not directly regulate density or separate communities by use type, which is advantageous for developers and homebuilders, who have far fewer restrictions to navigate when constructing new homes.

Large-scale computing facilities

Another main source of the growing demand for power is large-scale computing facilities such as data centers and cryptocurrency mining operations. These facilities consume large amounts of electricity to run and keep their computing equipment cool.

In 2022, in an effort to ensure grid reliability, ERCOT created a program to approve and monitor these large load (LFL) customers. The Large Flexible Load Task Force is a non-voting body that develops policy recommendations related to planning, markets, operations, and large load interconnection processes. LFL customers are those with an expected peak demand capacity of 75 megawatts or greater.

It is anticipated that electricity demand from customers identified by ERCOT as LFL will total 54 billion kilowatt-hours (kWh) in 2025, which is up almost 60% from the expected demand in 2024. If this comes to fruition, the demand from LFL customers would represent about 10% of the total forecast electricity consumption on the ERCOT grid this year. To accommodate the expected increase in power demand from large computing facilities, the state created the Texas Energy Fund, which provides grants and loans to finance the construction, maintenance, modernization, and operation of electric facilities in Texas. During this year’s 89th legislative session, lawmakers approved a major expansion of the Texas Energy Fund, allocating $5 billion more to help build new power plants and fund grid resilience projects.

Is solar power the key to stabilizing the grid?

The fastest-growing source of new electric generating capacity in the United States is solar power, and Texas stands as the second-highest producer of solar energy in the country.

On a regular day, solar power typically constitutes about 5% of the grid’s total energy output. However, during intense heat waves, when the demand for electricity spikes and solar conditions are optimal, the share of solar power can significantly increase. In such scenarios, solar energy’s contribution to the Texas grid can rise to as much as 20%, highlighting its potential to meet higher energy demands, especially during critical times of need.

While the benefits of solar power are numerous, such as reducing greenhouse gas emissions, lowering electricity bills, and promoting energy independence from the grid, it is important to acknowledge its barriers, such as:

  • Sunlight is intermittent and variable. Cloudy days, nighttime, and seasonal changes can affect energy production, requiring backup or storage solutions. Extreme weather conditions, such as hailstorms, can damage solar panels, affecting their performance and lifespan.
  • The upfront costs of purchasing and installing solar panels and associated equipment can be relatively high.
  • Large-scale solar installations may require significant land area, potentially leading to concerns about land use, habitat disruption, and conflicts with agricultural activities.
  • Integrating solar power into existing electricity grids can pose challenges due to its intermittent nature. Upgrading and modifying grids to handle distributed generation can be costly.

Although Texas has made progress in expanding its power supply, the rapid pace of population growth, homebuilding, and large-scale computing facilities presents challenges for grid stability. The gap between energy supply and demand needs to continue to be addressed with proactive planning. While solar power is a promising solution, there are realistic limitations to consider. A diversified approach that includes both renewable and traditional energy sources, along with ongoing legislative movement, is critical to ensuring a resilient energy future for Texas.

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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.

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Texas fell four spots on WalletHub's annual Greenest States report. Photo via Pexels

Texas falls lower on national ranking of greenest states for 2025

room to improve

Texas dropped in the rankings on WalletHub's Greenest States 2025 report.

The report, released last month, considered 28 relevant metrics—from air and water quality to the number of alternative fuel stations and green buildings per capita—to call out states doing the best (and worst) jobs of caring for the environment.

Texas came in at No. 42 out of 50, with a total score of 42.54 out of 100. Last year, the Lone Star State ranked No. 38 with a score of 50.40 based on 25 metrics.

Texas' poor ranking was driven by its last-placed ranking, coming in at No. 50, for overall environmental quality. It was tied for No. 45 for air quality and ranked No. 46 for water quality, which helped comprise the overall environmental quality score.

Other metrics fell closer toward the middle of the pack. The state ranked No. 32 for eco-friendly behaviors and No. 39 for climate-change contributions.

California also fell on the annual report. While the state claimed the top spot in 2024, it came in at No. 7 this year. Vermont, which came in second in 2024, was named the greenest state in 2025.

Hawaii, which didn't crack the top five last year, was ranked No. 2 on the 2025 report. New York, Maryland and Maine rounded out the top five this year.

West Virginia was the country's least green state again this year, followed by Louisiana, Kentucky, Alabama and Mississippi.

The report also showed that Democrat-led states ranked around No. 12 on average, whereas Republican states fell at around No. 33.

While the WalletHub report seems bleak for Texas, others have shown more positive signs for the state. Texas was ranked slightly above average in a recent ranking of the best states for sustainable development. A recently released U.S. Energy Storage Monitor shows that Texas led all states and surpassed California in the fourth quarter of 2024 by installing 1.2 gigawatts of utility-scale energy storage for solar and wind power.

Still, WalletHub also recently ranked Houston No. 98 out of 100 of the largest cities on its Greenest Cities in America report. Read more here.

Source: WalletHub
Texas ranked 24th on SmileHub's list of the best states for sustainable development. Photo via Getty Images.

New report ranks Texas in the middle for sustainable development

room to improve

Texas appears in the middle of the pack in a new ranking of the best states for sustainable development.

SmileHub, a nonprofit that rates charities, examined 20 key metrics to create its list of the best states for sustainable development. Among the metrics it studied were the share of urban tree cover, green buildings per capita and clean energy jobs per capita. Once SmileHub crunched all the numbers, it put Texas in 24th place — one notch above average.

The United Nations defines sustainable development as “meeting present needs without compromising the chances of future generations to meet their needs.”

Here’s how Texas fared in several of SmileHub’s ranking categories:

  • No. 2 for water efficiency and sustainability
  • No. 7 for presence of wastewater reuse initiatives
  • No. 18 for environmental protection charities per capita
  • No. 25 for green buildings per capita
  • No. 34 for clean energy jobs per capita
  • No. 34 for industrial toxins per square mile
  • No. 38 for share of tree cover in urban areas

California leads the SmileHub list, followed by Vermont, Massachusetts, Oregon and Maryland.

When it comes to water, a 2024 report commissioned by Texas 2036, a nonpartisan think tank, recommends that Texas invest $154 billion over the next 50 years in new water supply and infrastructure to support sustainable growth, according to the Greater Houston Partnership.

“The report underscores a stark reality: a comprehensive, sustainable funding strategy for water is necessary to keep Texas economically resilient and competitive,” the partnership says.

Ørsted, which maintains offices in Houston and Austin, just flipped the switch on its 468-megawatt Mockingbird Solar Center in Lamar County, a project that also established a nearby nature preserve. Photo courtesy of Ørsted

Danish renewable company’s largest solar project to power Texas grid, preserve prairie habitat

seeds planted

The largest solar project in the global portfolio of Danish renewable energy company Ørsted is now supplying power to the Electric Reliability Council of Texas (ERCOT) grid.

Ørsted, which maintains offices in Houston and Austin, just flipped the switch on its 468-megawatt Mockingbird Solar Center in Lamar County, which is northeast of Dallas-Fort Worth and directly south of the Texas-Oklahoma border. The $500 million project can produce enough power for 80,000 homes and businesses.

ERCOT provides power to more than 25 million Texas customers, representing 90 percent of the state’s electric load.

In conjunction with the solar project, Ørsted donated 953 acres to The Nature Conservancy to establish the Smiley Meadow Preserve. This area, adjacent to the Mockingbird facility, protects a tallgrass prairie habitat featuring more than 400 species of grasses and wildflowers. Accounting for land already owned by the conservancy, Smiley Meadow exceeds 1,000 acres.

“Through the power of partnership, Ørsted has helped The Nature Conservancy protect an irreplaceable landscape that might otherwise have been lost to development,” Suzanne Scott, The Nature Conservancy’s Texas state director, says in a news release.

Mockingbird Solar Center is part of Ørsted’s $20 billion investment in U.S. energy generation. With this project now online, Ørsted owns a portfolio of more than six gigawatts of onshore wind, solar, and battery storage projects that either are operating or are being built.

Plug and Play is opening a Sugar Land hub to accelerate startups and innovation across smart cities, energy, health, and mobility sectors. Photo courtesy of Plug and Play

Global organization unveils new location in Houston suburb to drive energy transition innovation and beyond

moving in

Leading innovation platform Plug and Play announced the opening of its new flagship Houston-area location in Sugar Land, which is its fourth location in Texas.

Plug and Play has accelerated over 2,700 startups globally last year with corporate partners that include Dell Technologies, Daikin, Microsoft, LG Chem, Shell, and Mercedes. The company’s portfolio includes PayPal, Dropbox, LendingClub, and Course Hero, with 8 percent of the portfolio valued at over $100 million.

The deal, which facilitated by the Sugar Land Office of Economic Development and Tourism, will bring a new office for the organization to Sugar Land Town Square with leasing and hiring between December and January.

The focus will be on “smart cities,” which include energy, health, transportation, and mobility sectors. The official launch is slated for the first quarter of 2025, and will feature 15 startups announced on Selection Day.

"By expanding to Sugar Land, we’re creating a space where startups can access resources, build partnerships, and scale rapidly,” VP Growth Strategy at Plug and Play Sherif Saadawi says in a news release. “This location will help fuel Texas' innovation ecosystem, providing entrepreneurs with the tools and networks they need to drive real-world impact and contribute to the state’s technological and economic growth."

Plug and Play plans to hire four full-time equivalent employees and accelerate two startup batches per year. One Sugar Land City representative will serve as a board member.

“We are excited to welcome Plug and Play to Sugar Land,” Mayor of Sugar Land Joe Zimmerma adds. “This investment will help us connect with corporate contacts and experts in startups and businesses that would take us many years to reach on our own. It allows us to create a presence, attract investments and jobs to the city, and hopefully become a base of operations for some of these high-growth companies.”

The organization originally entered the Houston market in 2019 and now has locations in Bryan/College Station, Frisco, and Cedar Park in Texas.

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This article originally ran on InnovationMap.

A new report ranks Texas as one of the least cycling-friendly states in the U.S., citing poor infrastructure, limited bike routes, and low safety measures, highlighting the need for improved sustainable transportation. Photo by Photo Mizuno K/Pexels

Report: Texas trails behind in cycling safety, sustainability

share the road

In what will come as no surprise to cyclists around Houston, the state of Texas is not a good place for bicycle riding. According to a new report of the "Most Cycling-Friendly States in the U.S.," Texas comes in at No. 47 — meaning that only three other states are worse.

The report, from Philadelphia personal injury law firm KaplunMarx, examines all 50 states based on six metrics: Air quality index, the number of cyclist deaths per one million residents, bike routes per square mile, local government actions supporting cycling, federal funding for cycling projects, and bicycle laws.

Texas musters a mere 31 points out of 100 for its "cycling friendly score."

The most cycling friendly state in the U.S.: Minnesota, which earned 84 points to claim the title.

According to the report's findings, there have been 15 local government actions per capita in Texas that integrate pedestrians and cyclists in transportation projects. Texas' has a 41 air quality index value, and there are approximately 1.2 bike routes per 1,000 square miles in the state.

On cyclist deaths, Texas does a little better, with three cyclist deaths per one million residents in Texas — about nine percent lower than the national average.

According to KaplunMarx founding partner Ted Kaplun, there is an average of 857 cyclist fatalities in the U.S. every year. He adds that every measure or community effort to improve cyclist-friendliness is beneficial for all Americans.

"It's crucial for all states to continually assess and enhance their cycling provisions, learning from both high-ranking peers and their own experiences," he says.

Top-ranking Minnesota has only one cyclist death per one million state residents. It also has about 27.2 bike routes per 1,000 square miles.

After Minnesota, the remaining top five best states for cyclists are Massachusetts (No. 2), Rhode Island (No. 3), Washington (No. 4), and Iowa (No. 5).

At the bottom of the list are Nevada (No. 48), Arizona (No. 49), and Utah (No. 50) — all of which performed far worse than Texas to be declared the three least cycling-friendly states.

The entire country still has areas for improvement when it comes to creating a safer environment for cyclists, regardless of where each state landed on the list, according to Kaplun.

"With over 53 million Americans riding bicycles regularly, the importance of cycling-friendly infrastructure and safety measures cannot be overstated," said Kaplun in the report. "This isn't just about rankings – it's about enhancing the quality of life, promoting sustainable transportation, and most crucially, saving lives."

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This article originally ran on CultureMap.

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7 Houston energy-focused businesses among Time's best midsize companies 2025

new report

Seven Houston-based businesses focused on the energy industry appear on Time magazine and Statista’s new ranking of the country’s best midsize companies.

Time and Statista ranked companies based on employee satisfaction, revenue growth, and transparency about sustainability. All 500 companies on the list have annual revenue from $100 million to $10 billion.

The Houston energy-focused companies on the list are:

  • No. 141 MRC Global. Score: 85.84
  • No. 176 National Oilwell Varco. Score: 84.50
  • No. 266 Nabor Industries. Score: 81.59
  • No. 296 Archrock. Score: 80.17
  • No. 327 Superior Energy Services. Score: 79.38
  • No. 359 CenterPoint Energy. Score: 78.02
  • No. 461 Oceaneering. Score: 73.87
In total, 13 Houston-based businesses appear, with Houston engineering firm KBR topping the Texas businesses that made the list. KBR earned the No. 30 spot, earning a score of 91.53 out of 100. It is joined by these other Houston companies:
     
  • No. 168 Comfort Systems USA. Score: 84.72
  • No. 175 Crown Castle. Score: 84.51
  • No. 234 Kirby. Score: 82.48
  • No. 332 Insperity. Score: 79.15
  • No. 485 Skyward Specialty Insurance. Score: 73.15

Additional Texas companies on the list include:

  • No. 95 Austin-based Natera. Score: 87.26
  • No. 199 Plano-based Tyler Technologies. Score: 86.49
  • No. 139 McKinney-based Globe Life. Score: 85.88
  • No. 140 Dallas-based Trinity Industries. Score: 85.87
  • No. 149 Southlake-based Sabre. Score: 85.58
  • No. 223 Dallas-based Brinker International. Score: 82.87
  • No. 226 Irving-based Darling Ingredients. Score: 82.86
  • No. 256 Dallas-based Copart. Score: 81.78
  • No. 276 Coppell-based Brink’s. Score: 80.90
  • No. 279 Dallas-based Topgolf. Score: 80.79
  • No. 294 Richardson-based Lennox. Score: 80.22
  • No. 308 Dallas-based Primoris Services. Score: 79.96
  • No. 322 Dallas-based Wingstop Restaurants. Score: 79.49
  • No. 335 Fort Worth-based Omnicell. Score: 78.95
  • No. 337 Plano-based Cinemark. Score: 78.91
  • No. 345 Dallas-based Dave & Buster’s. Score: 78.64
  • No. 349 Dallas-based ATI. Score: 78.44
  • No. 385 Frisco-based Addus HomeCare. Score: 76.86
  • No. 414 New Braunfels-based Rush Enterprises. Score: 75.75
  • No. 431 Dallas-based Comerica Bank. Score: 75.20
  • No. 439 Austin-based Q2 Software. Score: 74.85
  • No. 458 San Antonio-based Frost Bank. Score: 73.94
  • No. 475 Fort Worth-based FirstCash. Score: 73.39
  • No. 498 Irving-based Nexstar Broadcasting Group. Score: 72.71
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This article originally appeared on our sister site, InnovationMap.

TEX-E names Houston VC leader as new executive director

new hire

The Texas Exchange for Energy & Climate Entrepreneurship (TEX-E) has named Houston venture capital and innovation leader Sandy Guitar as its new executive director.

Guitar succeeds David Pruner, who will move into the board chair role.

Guitar previously served as general partner and managing director at Houston-based VC firm HX Venture Fund and is co-founder of Weathergage Capital. She also sits on the advisory board of Rice University's Liu Idea Lab for Innovation and Entrepreneurship (Lilie) and launched the Women Investing in VC in Houston group.

In a LinkedIn post, Guitar shared that she's looking forward to bringing her problem-solving skills to the energy transition.

"Innovating in the energy sector is as significant and intricate a problem as I have ever worked on — one that demands creativity, collaboration, and resourcefulness at every turn," she shared.

"I'm honored to join TEX-E at such a pivotal time in the energy transition," she added in a news release. "Energy and climate innovation is accelerating at the intersection of brilliant minds and bold ideas. I'm excited to help TEX-E amplify that collision between students who think differently and the real-world problems that demand fresh solutions."

According to TEX-E, Guitar will continue to lead the organization's programming that aims to connect student climate entrepreneurs with "industry reality."

"Sandy understands the complexities of the Texas energy ecosystem and brings a forward-looking vision for how related innovation can drive meaningful, lasting impact. She's exactly the leader we need to take TEX-E to the next level and help create the next generation of energy transition innovators," David Baldwin, TEX-E board member, added in the release.

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.

It's known for its student track within the Energy Venture Day and Pitch Competition at CERAWeek, which awarded $25,000 to HEXASpec, a Rice University-led team, at the 2025 event. It also hosted its inaugural TEX-E Conference, centered on the theme of Energy & Entrepreneurship: Navigating the Future of Climate Tech, earlier this year.

Expert: Debunking the myth that Texas doesn't care about renewable energy

Guest Column

When most people think about Texas, wind turbines and solar panels may not be the first images that come to mind. But in reality, the state now leads the nation in both wind-powered electricity generation and utility-scale solar capacity. In 2024 alone, Texas added approximately 9,700 megawatts of solar and 4,374 megawatts of battery storage, outpacing all other energy sources in new generation capacity that year. So what’s driving Texas’ rapid rise as the renewable energy capital of the United States?

Leader in wind energy

Texas has been a national leader in wind energy for more than a decade, thanks to its vast open landscapes and consistent wind conditions, particularly in regions like West Texas and the Panhandle. These ideal geographic features have enabled the development of massive wind farms, giving Texas the largest installed wind capacity in the United States. Wind energy also plays a strategic role in balancing the grid and complements solar energy well, as it often peaks at night when solar output drops.

Battery storage growth

Increasing battery storage capacity is unlocking more potential from solar and wind. When intermittent energy sources like wind and solar go offline, batteries release stored electricity and provide stability to the Electric Reliability Council of Texas system. Excluding California, Texas has more battery storage than the rest of the United States combined, accounting for over 32% of all the capacity installed nationwide.

Solar electricity generation and utility-scale batteries within ERCOT power grid set records in summer 2024. Between June 1 and August 31, solar contributed nearly 25% of total power demand during mid-day hours. In the evening, as demand stayed high but solar output declined, battery discharges successfully filled the gap. Battery storage solutions are now a core element of ERCOT’s future capacity and demand planning.

Interest in creating a hydrogen economy

Texas is well positioned to become a national hub in the hydrogen economy. The state has everything needed to lead in this emerging space with low-cost natural gas, abundant and growing low carbon electricity, geology well suited for hydrogen and carbon storage, mature hydrogen demand centers, existing hydrogen pipelines, established port infrastructure and more. The state already has an existing hydrogen market with two-thirds of the country’s hydrogen transport infrastructure.

In 2023, the Texas Legislature created the Texas Hydrogen Production Policy Council, which found that:

  • Hydrogen could represent a grid-scale energy storage solution that can help support the increased development of renewable electricity from wind and solar. Renewable electricity that is converted to hydrogen can improve overall grid reliability, resilience and dispatchability.
  • The development of the hydrogen industry, along with its supporting infrastructure and its downstream markets within Texas, could attract billions of dollars of investment. This development may create hundreds of thousands of jobs - especially with younger generations who are passionate about climate science - and greatly boost the Texas economy.
  • Hydrogen supports the current energy economy in Texas as a critical component to both conventional refining and the growing production of new biofuels (such as renewable diesel and sustainable aviation fuel) within the state.

Legislative action and pressure to reduce carbon emissions

Texas has also seen key legislative actions and policies that have supported the growth of renewable energy in Texas. During the most recent legislative session, lawmakers decided that The Texas Energy Fund, a low-interest loan program aimed at encouraging companies to build more power infrastructure, will receive an additional $5 billion on top of the $5 billion lawmakers approved in 2023. Of that amount, $1.8 billion is earmarked to strengthen existing backup generators, which must be powered by a combination of solar, battery storage and natural gas. These funds signal growing institutional support for a diversified and more resilient energy grid.

Furthermore, there is growing pressure from investors, regulators and consumers to reduce carbon emissions, and as a result, private equity firms in the oil and gas sector are diversifying their portfolios to include wind, solar, battery storage and carbon capture projects. In 2022, private equity investment in renewable energy and clean technology surged to a record-high $26 billion.

The future of the renewable energy workforce

With renewable energy jobs projected to grow to 38 million globally by 2030, the sector is poised to be one of the most promising career landscapes of the future. Given that young people today are increasingly environmentally conscious, there is a powerful opportunity to engage students early and help them see how their values align with meaningful, purpose-driven careers in clean energy. Organizations like the Energy Education Foundation play a vital role in this effort by providing accessible, high-quality resources that bridge the gap between energy literacy and real-world impact. The nonprofit employs comprehensive, science-based educational initiatives to help students and educators explore complex energy topics through clear explanations and engaging learning tools, laying a strong foundation for informed, future-ready learners.

STEM and AI education, which are reshaping how young people think, build, and solve problems, provide a natural gateway into the renewable energy field. From robotics and coding to climate modeling and sustainable engineering, these learning experiences equip students with the critical skills and mindsets needed to thrive in a rapidly evolving energy economy. By investing in engaging, future-focused learning environments now and through leveraging trusted educational partners, like the Energy Education Foundation, we can help ensure that the next generation of learners are not just prepared to enter the clean energy workforce but are empowered to lead it.

With its rapidly growing wind, solar, battery and hydrogen sectors, Texas is redefining its energy identity. To sustain this momentum, the state must continue aligning education, policy, and innovation—not only to meet the energy demands of tomorrow, but to inspire and equip the next generation to lead the way toward a more sustainable, resilient and inclusive energy future.

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Kristen Barley is the executive director of the Energy Education Foundation, a nonprofit dedicated to inspiring the next generation of energy leaders by providing comprehensive, engaging education that spans the entire energy spectrum.


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