Insufficient energy reliability thwarts new economic growth & opportunity
By Ray Rothrock, Joshua Rhodes, and Armond Cohen
AUSTIN, Texas (Texas Insider Report) — Electricity powers the Texas Economy – which is now the 8th largest in the world, and the 3rd largest in the United States. With, and because of this economic vitality, electricity demand is soaring.
The Electric Reliability Council of Texas (ERCOT) projects electricity demand could increase up to 50% by 2035 – and double in just 25 years from now. Much of this demand requires uninterrupted, around-the-clock power.
However, Texas already faces these concerns today.
A recent survey by the Bureau of Business Research and IC2 at University of Texas asked nearly 100 local Texas officials about challenges to industrial growth in their regions. Most officials identified “power capacity” as their top concern, frequently emphasizing that certainty of electricity at facility operation and 24/7 electricity without interruptions often outweigh even electricity costs.
Insufficient energy reliability frequently thwarts new industrial facilities and costs communities valuable economic opportunity.
Fortunately, Texas is well-positioned to address this challenge.
As the nation’s top electricity producer, Texas recognizes the need for diversified, reliable, and dispatchable energy sources – and new nuclear capacity is an ideal candidate to complement natural gas.
Texas is no stranger to nuclear energy. The Lone Star State is home to four commercial nuclear reactors that deliver 10% of the state’s power.
Over the last three decades, these reactors have proven exemplary performance and resilience, even during extreme weather.
Now, Texas is preparing to construct two new advanced nuclear demonstration projects and host additional projects, signaling a resurgence in nuclear energy in the state.
As the nation’s top electricity producer, Texas recognizes the need for diversified, reliable, and dispatchable energy sources – and new nuclear capacity is an ideal candidate to complement natural gas.
Texas is no stranger to nuclear energy. The Lone Star State is home to four commercial nuclear reactors that deliver 10% of the state’s power.
Over the last three decades, these reactors have proven exemplary performance and resilience, even during extreme weather.
Now, Texas is preparing to construct two new advanced nuclear demonstration projects and host additional projects, signaling a resurgence in nuclear energy in the state.
While nuclear energy involves higher upfront capital cost, it produces low-cost power for 60-80 years – potentially for 100 years – which is three times longer than gas plants. Nuclear also offers more stable fuel prices, shielding Texas ratepayers from volatile energy prices.
Beyond reliability, nuclear energy offers many benefits including energy independence, very small land use, and reduced air emissions. Perhaps the greatest benefit is the opportunity to be an economic engine. National demand for nuclear energy is rising, and by moving first, Texas could become the nation’s – and the world’s – commercial nuclear energy capital.The University of Texas estimates that a buildout of new reactors alone in Texas could add 148,000 annual jobs in construction, operations, and manufacturing – and generate $51 billion in new economic output. And, Texas already has what it takes:
- A skilled energy workforce
- Robust manufacturing capabilities
- A network of industry and refining
- World-class ports, and
- World-renowned universities that already lead in nuclear science and technology education.
This investment would accelerate advanced nuclear to the grid by getting projects past the first, and often biggest, hurdles of assessing project feasibility, assembling a workforce, and breaking through permitting and other licensing hangups.
What Texas gets in return for a modest investment is a more rapidly deployed, reliable, and scalable nuclear industry that will power the economy for much of this century if not beyond.
What Texas gets in return for a modest investment is a more rapidly deployed, reliable, and scalable nuclear industry that will power the economy for much of this century if not beyond.
Nuclear energy represents a Texas-sized opportunity to deliver reliable, abundant energy our taxpayers, businesses, and economy need over the next century.
Texas has always led on energy. Nuclear should be no exception.
Ray Rothrock is a Texas-born nuclear engineer, storied venture capitalist, and a graduate of Texas A&M, MIT, and Harvard Business School. Joshua D. Rhodes, PhD, is a Research Scientist at the University of Texas-Austin and a lead author on IC2's and Bureau of Business Research's report on Nuclear Energy. Armond Cohen is Executive Director of Clean Air Task Force, an organization that advocates for advanced nuclear energy and other advanced energy technologies.
