How can Houston's energy transition be built with the city's communities in mind? Through trust, public education, and intention, according to a panel of experts. Photo via Getty Images

As the energy sector transitions toward a more sustainable future, a Houston organization is driving forward the idea to do so with a community-based approach, as some experts discussed at a recent breakfast panel.

The Center for Houston's Future hosted a breakfast discussion on August 10, entitled "Building a Community-Based Approach to the Energy Transition," sponsored by BP Energy. The conversation covered various ways corporations, organizations, and individuals could work together to build this approach, including through education, upskilling, collaborations, and more.

Photo by Laura Goldberg/Center for Houston's Future on LinkedIn

The event kicked off with a keynote address from Brad Townsend, vice president of policy and outreach at the Center for Climate and Energy Solutions, who set the scene for the discussion.

“The energy transition offers an opportunity to build a thriving, just, and resilient net-zero economy that can benefit companies and communities alike" he says to the crowd. "It’s the chance to raise jobs standards and safely through local and federal policies, employ a practice change, cross-sector collaboration, and worker training.

“It's also an opportunity to diversify the workforce to better reflect local communities, including in Houston," he continues. "If we approach this engagement however as a box checking exercise or unwilling to really provide communities an opportunity to help shape projects, we’re destined to fail. Being genuinely open to feedback from communities and actively incorporating them into the decision-making process is foundational to generating the community buy-in that will be crucial to a successful energy transition.”

Here were some of the key takeaways from the event.

"When we talk about Houston we need to be cognizant that it is a huge geographical area, and you cannot speak to Houston as a monolith. You can't even speak to individual communities as single entities."

— Anne Bartlett, vice president of industry and community resources at Brazosport College.

"Our responsibility is to recognize and really understand our communities not just from labor market data perspective, but also by having conversations with people who know what’s happening on the ground," she continues. "Our charge is to recognize that yes, this is a regional opportunity but it really does need to be situationalized in our specific communities and recognize the strengths and the opportunities that are present in all of those."

"One of the opportunities and challenges that's part of this massive energy transition, which I think will not only bring about investments of billions of dollars but potentially trillions of dollars, is to utilize these significant investments as an opportunity to not only transform how we make, use, and transport energy, but also uplift these communities that are adjacent to the facilities where hydrogen and other resources will be will be produced."

— John Hall, president and CEO of Houston Advanced Research Center.

"We (need to) use this entire transformational effort to open the doors of opportunity for every community," he adds.

“While it is the right thing to do to bring in the full breath of diversity that we have, it's (also) absolutely necessary.”

— Mark Crawford, senior vice president at BP Energy.

"We're in in Houston. We are the most diverse city in the United States, and the United States is becoming more and more diverse," he explains.

"It is important to bring holistic solutions to communities. ... We can't do everything, but there are organizations working on the ground that are doing really great work. It's about companies going in and partnering with stakeholders on the ground who understand the communities so that we are bringing these wrap-around services."

Crawford continues, noting that it's on companies like BP to tap into and support local entities.

“There's a fundamental shift that needs to happen in the way that we're talking about these jobs to really encourage young people to take advantage of resources that are made available, because we can integrate that into the educational curriculum, but unless students and young people are willing to move in that direction it's not going to make a difference.”

— Townsend says on the panel, addressing the sentiment that young people are told job security comes only with a college degree. The panelists agree this isn't the case anymore, yet that message is still being conveyed.

“I think it's really important to pull back and recognize the opportunity that's in the K-12 space — not only with the children and making sure that they're aware that these careers even exist, but perhaps just as importantly with their parents.” 

Bartlett says, adding that these kids will be the ones in thes jobs in 10 or so years, so that message needs to start being conveyed now.

“All of these things cost money. There are dollars that are out there right now that we are not leveraging — there are dollars that are available through the Texas Workforce Commission, through Chambers of Commerce. So, we're not talking about having to reinvent the wheel and having to go to our industry partners with palms up, we're talking about leveraging the resources that are already out there in a wiser way.”

Bartlett says about the feasibility of workforce development programs.

“It would be unfortunate — (and) it would be potentially catastrophic — if we see the trillions and trillions of dollars invested over the next 20 years, and we have left behind 25 percent or more of citizens.”

Hall says, emphasizing how important working with communities — and hearing their concerns — is to this process.

He later adds that he's worked with community leaders, and he knows they are optimistic — as is he — about this process. “These are not peculiar human beings. They have the same hopes and dreams that we have, and if we will take the step to just reach out and connect and communicate with sincerity, then those barriers are easier to overcome.”

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CenterPoint and partners launch AI initiative to stabilize the power grid

AI infastructure

Houston-based utility company CenterPoint Energy is one of the founding partners of a new AI infrastructure initiative called Chain Reaction.

Software companies NVIDIA and Palantir have joined CenterPoint in forming Chain Reaction, which is aimed at speeding up AI buildouts for energy producers and distributors, data centers and infrastructure builders. Among the initiative’s goals are to stabilize and expand the power grid to meet growing demand from data centers, and to design and develop large data centers that can support AI activity.

“The energy infrastructure buildout is the industrial challenge of our generation,” Tristan Gruska, Palantir’s head of energy and infrastructure, says in a news release. “But the software that the sector relies on was not built for this moment. We have spent years quietly deploying systems that keep power plants running and grids reliable. Chain Reaction is the result of building from the ground up for the demands of AI.”

CenterPoint serves about 7 million customers in Texas, Indiana, Minnesota and Ohio. After Hurricane Beryl struck Houston in July 2024, CenterPoint committed to building a resilient power grid for the region and chose Palantir as its “software backbone.”

“Never before have technology and energy been so intertwined in determining the future course of American innovation, commercial growth, and economic security,” Jason Wells, chairman, president, and CEO of CenterPoint added in the release.

In November, the utility company got the go-ahead from the Public Utility Commission of Texas for a $2.9 billion upgrade of its Houston-area power grid. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

A month earlier, CenterPoint launched a $65 billion, 10-year capital improvement plan to support rising demand for power across all of its service territories.

ERCOT approves $9.4B project to improve grid, meet data center demand

power project

The Electric Reliability Council of Texas, which manages the electric grid for 90 percent of Texans, is undertaking a $9.4 billion project to improve the reliability and efficiency of statewide power distribution. The initiative comes as ERCOT copes with escalating demand for electricity from data centers and cryptocurrency-mining facilities.

The project, approved Dec. 9 by ERCOT’s board, will involve building a 1,109-mile “super highway” of new 765-kilovolt transmission lines. One kilovolt equals 1,000 volts of electricity.

According to the Hoodline Dallas news site, the $9.4 billion project represents the five- to six-year first phase of ERCOT’s Strategic Transmission Expansion Plan (STEP). Hoodline says the plan, whose price tag is nearly $33 billion, calls for 2,468 miles of new 765-kilovolt power lines.

STEP will enable ERCOT to “move power longer distances with fewer losses,” Hoodline reports.

Upgrading the ERCOT grid is a key priority amid continued population growth in Texas, along with the state’s explosion of new data centers and cryptocurrency-mining facilities.

ERCOT says about 11,000 megawatts of new power generation capacity have been added to the ERCOT grid since last winter.

But in a report released ahead of the December board meeting, ERCOT says it received 225 requests this year from large power users to connect to its grid — a 270 percent uptick in the number of megawatts being sought by mega-users since last December. Nearly three-fourths (73 percent) of the requests came from data centers.

Allan Schurr, chief commercial officer of Houston-based Enchanted Rock, a provider of products and services for microgrids and onsite power generation, tells Energy Capital that the quickly expanding data center industry is putting “unprecedented pressure” on ERCOT’s grid.

“While the state has added new generation and transmission capacity, lengthy interconnection timelines and grid-planning limitations mean that supply and transmission are not keeping pace with this rapid expansion,” Schurr says. “This impacts both reliability and affordability.”

For families in Texas, this could result in higher energy bills, he says. Meanwhile, critical facilities like hospitals and grocery stores face a heightened challenge of preventing power outages during extreme weather or at other times when the ERCOT grid is taxed.

“I expect this trend to continue as AI and high-density computing grow, driving higher peak demand and greater grid variability — made even more complex by more renewables, extreme weather and other large energy users, like manufacturers,” Schurr says.

According to the Pew Research Center, data centers accounted for 4 percent of U.S. electricity use in 2024, and power demand from data centers is expected to more than double by 2030. Data centers that support the AI boom make up much of the rising demand.

In September, RBN Energy reported more than 10 massive data-center campuses had been announced in Texas, with dozens more planned. The Lone Star State is already home to roughly 400 data centers.

“Texas easily ranks among the nation’s top states for existing data centers, with only Virginia edging it out in both data-center count and associated power demand,” says RBN Energy.

Federal judge strikes Trump order blocking wind energy development

wind win

In a win for clean energy and wind projects in Texas and throughout the U.S., a federal judge struck down President Donald Trump’s “Day One” executive order that blocked wind energy development on federal lands and waters, the Associated Press reports.

Judge Patti Saris of the U.S. District Court for the District of Massachusetts vacated Trump’s executive order from Jan. 20, declaring it unlawful and calling it “arbitrary and capricious.”

The challenge was led by a group of state attorneys general from 17 states and Washington, D.C., which was led by New York Attorney General Letitia James. The coalition pushed back against Trump's order , arguing that the administration didn’t have the authority to halt project permitting, and that efforts would critically impact state economies, the energy industry, public health and climate relief efforts.

White House spokesperson Taylor Rogers told the Associated Press that wind projects were given unfair treatment during the Biden Administration and cited that the rest of the energy industry suffered from regulations.

According to the American Clean Power Association, wind is the largest source of renewable energy in the U.S. It provides 10 percent of the electricity generated—and growing. Texas leads the nation in wind electricity generation, accounting for 28 percent of the U.S. total in 2024, according to the U.S. Energy Information Administration.

Several clean-energy initiatives have been disrupted by recent policy changes, impacting Houston projects.

The Biden era Inflation Reduction Act’s 10-year hydrogen incentive was shortened under Trump’s One Big Beautiful Bill Act, prompting ExxonMobil to pause its Baytown low-carbon hydrogen project. That project — and two others in the Houston region — also lost federal support as part of a broader $700 million cancellation tied to DOE cuts.

Meanwhile, Texas House Democrats have urged the administration to restore a $250 million Solar for All grant that would have helped low-income households install solar panels.