grid tech

Houston energy leaders form new coalition to improve Texas power grid

A new coalition of energy leaders wants to “take the Texas grid from good to great." Photo via Getty Images

A Houston-based coalition that launched this month aims to educate Texas officials about technology designed to shore up the state’s power grid.

The public-private Texas Reliability Coalition says it will promote utility-scale microgrid technology geared toward strengthening the resilience and reliability of the Texas power grid, particularly during extreme weather.

A utility-operated microgrid is a group of interconnected power loads and distributed energy sources that can operate in tandem with or apart from regular power grids, such as the grid run by the Electric Reliability Council of Texas (ERCOT). Legislation passed in 2023 enables the use of utility-scale microgrid technology in Texas’ deregulated energy market, according to the coalition.

John Elder, executive director of the coalition, says that with the legal framework now in place, the Public Utility Commission of Texas and ERCOT need to create rules to establish the Texas marketplace for microgrid technology. The goal, he says, is to “take the Texas grid from good to great” by installing microgrid technology, improving the infrastructure, and strengthening the system — all targeted toward meeting power needs during extreme weather and amid growing demand.

Houston-based CenterPoint Energy will test the utility-scale microgrid technology being promoted by the coalition. In a January 31 filing with the Public Utility Commission, CenterPoint says microgrid technology will be featured in a $36.5 million pilot program that’ll set up an estimated three to five microgrids in the company’s service area. The pilot program is slated to last from 2026 to 2028.

In the public affairs arena, five Houston executives are leading the new reliability commission’s microgrid initiative.

Elder, one of the coalition’s founding members, is president and CEO of Houston-based Acclaim Energy. Other founders include Ember Real Estate Investment & Development, Park Eight Development, and PowerSecure. Ember and Park Eight are based in Houston. Durham, North Carolina-based PowerSecure, which produces microgrid technology, is a subsidiary of energy provider Southern Co.

Aside from Elder, members of the coalition’s board are:

  • Stewart Black, board secretary of the coalition and vice president of Acclaim Energy’s midstream division
  • Todd Burrer, president of municipal utility districts at Inframark.
  • Harry Masterson, managing principal of Ember
  • Martin Narendorf, former vice president at CenterPoint Energy.

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A View From HETI

Shell's Woodcreek campus is home to about 67,000 workers. Photo courtesy HOK

Energy giant Shell has put its U.S. headquarters in Houston’s Energy Corridor on the market and is exploring the sale of its U.S. chemical business.

Green Street News reported Shell just listed its longtime Energy Corridor campus at 150 N. Dairy Ashford Road. The asking price is $325 million, The Real Deal reported. Shell plans to lease back half of the nearly 1.5 million-square-foot Woodcreek campus for 15 years.

A sale-leaseback deal could transform the 43.6-acre campus into a multitenant hub, CoStar News reported.

“Houston is a critical hub for Shell globally and the headquarters of our U.S. businesses,” a Shell spokesperson told the Houston Business Journal. “We remain committed to Houston and are evaluating opportunities to optimize our Woodcreek campus as part of our ongoing review of workplace needs while maintaining a strong presence in the city.”

Shell occupied its first building at the West Houston campus in 1980. The company employs more than 6,000 people in Texas.

Shell is one of the highest-profile businesses occupying space in the Energy Corridor. It’s home to 67,000 workers, more than 27 million square feet of office and mixed-use space, and 3.8 million square feet of retail and restaurant space.

Shell considers $8B sale of chemical business

As the company seeks to unload its Woodcreek campus, The Financial Times reported Shell is looking into selling its U.S. chemical business. The price tag: $8 billion.

Potential buyers include Spring-based ExxonMobil and Houston-based LyondellBasell.

Shell operates four chemical plants in Texas, Louisiana and Pennsylvania, producing an array of chemicals for use in plastics, detergents and pharmaceuticals.

Shell CEO Wael Sawan said last year that the company had spent $45 billion in capital “that is underperforming for us,” split between its chemical business and renewable energy arm.

Shell also agreed to sell its solar and wind power business in India this summer. Read more here.

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