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Energy expert reviews Texas' big strides in winter grid resilience

How has the Texas grid improved since Winter Storm Uri in 2021? Getty Images

Many Houstonians were holding their breath during the hard freezes that occurred in late January. While Winter Storm Uri was five years ago, the massive blackouts remain a fresh memory.

During that storm, 4.5 million Texans lost power, the state suffered over $80 billion in economic losses, and more than 200 people lost their lives.

During the most recent freeze events, Texas did not experience large-scale blackouts across the state like those in 2021. Regional power outages occurred due to infrastructure issues, including ice on trees and power lines. Since Uri, we have not seen the same sustained weather conditions to test the grid, but there have been significant improvements.

What Has Changed Since Uri

The ERCOT grid has changed significantly since the storm in 2021:

  1. Senate Bill 3 required generators to winterize their equipment, treated the natural gas supply chain as critical infrastructure, and imposed fines of up to $1 million for falling short. More than 300 power units have already been weatherized, and regulators have issued clearer standards to help keep the grid running during extreme cold.
  2. There has been significant progress with monitoring the grid and preparing for emergencies. ERCOT has improved in spotting problems before they turn into outages. Operators now have stronger real-time visibility into generator performance and fuel supplies, improved coordination with natural gas providers, and more advanced forecasting tools that help predict energy availability.
  3. The Texas Energy Fund authorized more than $10 billion for reliability projects across the state. The funds support four programs that aim to increase energy generation and dispatch capacity during periods of grid strain.

Signs of Progress

The grid's performance from 2022 to 2026 shows measurable improvements in how the system handles extreme cold.

  • ERCOT has implemented conservation alerts to help reduce grid load and prevent major blackouts.
  • Operators monitor the reserve margin, essentially the buffer between supply and demand. When that cushion holds, the grid has more flexibility to keep power flowing.
  • Stronger coordination between generators, transmission operators and utilities is also improving overall system resilience.

Additionally, Texas has built one of the largest smart-meter networks in the country, enabling better predictive analysis of electricity demand and usage. These smart meters have been installed in 90% of Texas residential homes, providing a much more accurate picture of energy consumption.

Finally, energy companies are helping customers understand how small changes in usage can ease grid strain. Individually, those adjustments may seem minor, but across millions of homes, they can meaningfully lower demand and help reduce the risk of outages.

Remaining Vulnerabilities and Possible Risks

Despite the progress, Grid Strategies assigned the Texas power grid a D-minus rating this year. A major factor in the rating is Texas’s lack of connections to neighboring power grids. While the state earned a B for legislative engagement, delayed transmission projects contributed to a lower C-minus outcome score.

While the grid has become more reliable since 2021, several threats remain that could impede its continued progress.

  • Population growth remains one of the biggest tests for Texas grid reliability. The state is expected to add roughly 15 million residents over the next three decades.
  • Data centers, industrial expansion, and corporate relocations continue to drive electricity demand higher. Houston sits at the center of that growth, making it a key region to watch to see whether Texas can keep pace with rising energy needs.
  • Increased weather volatility in Texas will make demand predictions even more challenging. Currently, Texas supplies almost 45% of its energy needs with natural gas. Natural gas production and extraction are particularly susceptible to cold weather and freezing conditions.

What “No Blackouts” Really Means for Texans

A stronger grid comes with a price tag. Meeting Texas’s growing demand requires major investments in generation, transmission, and emergency preparedness, and those costs ultimately flow to consumers through higher electric bills.

At the same time, Texans are becoming more proactive about managing energy use and protecting against outages, with more homeowners investing in generators, battery storage, and solar as part of long-term energy planning.

Final Thoughts

As lawmakers continue to debate how to recover grid investments, consumers will ultimately bear part of the cost. The challenge moving forward is improving reliability while keeping electricity affordable for Texans.

Texas continues to expand renewable generation to diversify the power mix, and battery storage is quickly becoming a key reliability tool because it can respond almost instantly to demand spikes. At the same time, advanced forecasting technology is helping operators better anticipate grid stress.

The Texas energy market is evolving fast, driven by population growth and rising electricity demand. Lawmakers, regulators, and grid operators will need to stay aligned to keep reliability moving in the right direction, while consumers will play a bigger role in managing how and when they use electricity.

So, is Texas better prepared for winter today? In many ways, yes. But the grid is still vulnerable to extreme weather and rapid demand growth. Maintaining reliability will require continued investment, planning, and coordination to keep the lights on across the state.

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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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A View From HETI

Can Texas build the energy infrastructure needed to power what comes next? Photo via Getty Images

For a few weeks this summer, Houston welcomed the world.

The FIFA World Cup 2026 showcased our city's ability to host one of the largest international events on the planet. Millions watched from around the globe while hundreds of thousands of visitors experienced firsthand what Houston has become: a world-class destination for business, culture and global events.

But once the final match is played and the visitors return home, a more important question remains: Can Texas build the energy infrastructure needed to power what comes next?

The World Cup wasn't the finish line. It was a glimpse into the future.

That future is being shaped not only by population growth, but also by artificial intelligence, hyperscale data centers, advanced manufacturing, electrification, LNG expansion and continued industrial investment. Together, these forces are creating an unprecedented demand for electricity and placing new expectations on the infrastructure that supports it.

Energy Has Become Economic Infrastructure

For decades, economic development centered around highways, ports, airports and workforce.

Today, another asset has moved to the top of that list: energy infrastructure.

Reliable electricity is no longer simply a utility service. It has become a competitive advantage.

Companies evaluating where to build the next AI campus, manufacturing facility or industrial complex are increasingly asking different questions. How quickly can power be delivered? Is there enough transmission capacity? Can substations support future expansion? Is water infrastructure available? What is the long-term reliability of the local grid?

These questions are becoming just as important as tax incentives and available real estate.

Recent comments from Governor Greg Abbott that future AI developments should provide their own power generation and water illustrate just how dramatically the conversation has evolved. The challenge is no longer limited to meeting today's demand. It is preparing for a future where entirely new industries require unprecedented amounts of electricity while ensuring existing homes and businesses continue to receive reliable, affordable service.

The Next Energy Race Has Already Begun

Texas remains the nation's energy leader, producing more electricity than any other state while continuing to expand natural gas, wind, solar and emerging technologies.

But leadership in the next decade will be measured differently.

Success will depend on how quickly we can expand transmission infrastructure, modernize distribution systems, accelerate interconnection, strengthen grid resilience and support new generation where economic growth is occurring.

The conversation has shifted from producing more electricity to delivering it smarter.

That requires planning years before demand arrives.

Houston Is the Proving Ground

Houston sits at the center of this transformation.

Already recognized as the Energy Capital of the World, the region continues attracting major employers, global headquarters, industrial expansion and technology investment. The Port of Houston continues to grow. Advanced manufacturing is expanding. AI companies are evaluating Texas alongside other national markets.

Every one of these investments depends on reliable infrastructure.

While the World Cup demonstrated Houston's ability to manage a temporary surge of visitors, the more significant challenge lies ahead. Permanent economic growth creates sustained electricity demand that cannot be addressed with temporary solutions.

Meeting that demand will require coordinated investment across generation, transmission, distribution, storage and increasingly, digital technologies capable of forecasting and managing electricity in real time.

Smarter Infrastructure for a Smarter Grid

The future electric grid will look very different from the one that built modern Texas.

Artificial intelligence, predictive analytics, advanced sensors and distributed energy resources will allow operators to anticipate demand, identify equipment failures before they occur and optimize energy delivery across increasingly complex networks.

Infrastructure is no longer simply about building more. It is about building smarter.

At the same time, resilience must remain central to every investment. Texans understand better than most that hurricanes, flooding, winter storms and prolonged heat waves are no longer rare events. Modern infrastructure must not only support growth but also withstand increasingly volatile weather.

Building Beyond the Headlines

The World Cup generated headlines because of what happened on the field.

Its lasting legacy may be what it revealed about the city beyond the stadium.

Houston demonstrated that it can host the world. The next challenge is ensuring it can continue to power one of the fastest-growing economies in North America.

That will require continued investment, thoughtful policy and long-term planning that recognizes energy infrastructure as essential economic infrastructure.

Texas has spent decades leading the world in energy production.

The next opportunity is even greater.

To become the global leader in how energy systems are planned, built and operated for a future defined by artificial intelligence, industrial growth and rapidly evolving consumer demand.

Because the cities that lead tomorrow won't simply generate the most energy.

They'll be the ones best prepared to deliver it where opportunity is growing.

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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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