by the numbers

Report: Texas scores significant chunk of federal clean energy investment

For the 2023 budget year, Texas’ total pot of federal money ranked second behind California’s. Photo via Getty Images

On a per-person basis, Texas grabbed the third-highest share of federal investment in clean energy and transportation during the government’s 2023 budget year, according to a new report.

Texas’ haul — $6.2 billion in federal investments, such as tax credits and grants — from October 1, 2022, to September 30, 2023, worked out to $204 per person, bested only by Wyoming ($369) and New Mexico ($259). That’s according to the latest Clean Investment Monitor report shows. Rhodium Group and MIT’s Center for Energy and Environmental Policy Research produced the report.

For the 2023 budget year, Texas’ total pot of federal money ranked second behind California’s ($7.5 billion), says the report. Nationwide, the federal government’s overall investment in clean energy and transportation reached $34 billion.

Other highlights of the report include:

  • Public and private investment in clean energy and transportation soared to $239 billion in 2023, up 37 percent from the previous year.
  • Overall investment in utility-scale solar power and storage systems climbed to $53 billion in 2023, up more than 50 percent from the previous year.
  • Overall investment in emerging climate technologies (clean energy, sustainable aviation fuel, and carbon capture) during 2023 surpassed investment in wind energy for the first time. This pool of money expanded from $900 million in 2022 to $9.1 billion in 2023.

The Lone Star arm of the pro-environment Sierra Club says the federal Inflation Reduction Act, which took effect in 2022, “includes a dizzying number of programs and tax incentives” for renewable energy.

“While it will take several years for all the programs to be implemented, billions in tax incentives and tax breaks, along with specific programs focused on clean energy development, energy efficiency, onsite solar, and transmission upgrades, means that Texas could help lower costs and transform our electric grid,” says the Sierra Club.

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A View From HETI

The company's 200-megawatt battery facility in Galveston County came online this month. Photo via aoprenewables.com

Houston-based Alpha Omega Power, which develops, invests in and runs utility-scale battery energy storage systems, has signed a deal to add more storage capacity from a subsidiary of South Korean tech giant Samsung.

The latest deal adds 1 gigawatt-hour of storage capacity to Alpha Omega’s existing contract with Samsung SDI America, bringing total storage capacity to 1.5 gigawatts.

The Michigan-based Samsung subsidiary is manufacturing the systems’ cells and modules at a plant in Indiana, Alpha Omega said. Samsung SDI plans to deliver them by the end of this year.

“This second agreement strengthens our domestic supply chain supporting the next generation of energy infrastructure,” Paul Choi, CEO of Alpha Omega, said in a press release.

Houston-based Fengate Asset Management owns Alpha Omega. In 2023, they formed a partnership to build, acquire, and operate utility-scale battery energy storage projects in the U.S. Their 200-megawatt Vertus battery facility in Galveston County came online this month.

Alpha Omega plans to use the Samsung SDI systems to improve grid reliability and meet greater demand for power in markets served by the Electric Reliability Council of Texas (ERCOT) and the Salt Lake City-based Western Electricity Coordinating Council.

ERCOT covers 90 percent of power customers in Texas. The Western Interconnection grid covers all or part of 14 states, as well as parts of Canada and Mexico.

Samsung SDI is the only non-Chinese supplier of rigid-metal “prismatic” energy storage batteries in North America, according to Alpha Omega.

“With strong durability and fire safety compared with pouch-type batteries, its prismatic batteries have helped the company meet the stringent requirements of U.S. energy companies,” Alpha Omega said.

The Samsung Battery Box 1.7 equipment being purchased by Alpha Omega offers AI-powered algorithms and 25 years of continuous use, along with greater energy density than its predecessor. It also features the ability to directly inject fire-extinguishing agents on a module-by-module basis.

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