Business leaders urge Legislators – Red tape in energy generation is bad for Texas
By Glenn Hamer
AUSTIN, Texas (Texas Insider Report) — A few short years ago it was more common to see a UFO in Texas than a Solar or Wind Farm on the Lone Star State's High Plains. But times have changed for the better, and today Texas leads all states in adding utility-scale solar and battery storage to the electrical grid. The result: a stronger electricity market that is more stable and diversified – and cheaper for businesses and consumers.
While there are several bills in the Legislature that would severely restrict the buildout of Texas' clean energy infrastructure, state leaders should embrace an “all-of-the-above-and-below” strategy to energy generation to ensure that we can meet rising energy demand and strengthen the grid’s reliability. Our economy depends on it.
It is no secret that energy demand is growing rapidly in Texas and across the country. The Electric Reliability Council of Texas (ERCOT Control Room, right,) forecasts that energy demand will increase 40% by 2030 – and that it will need to double generation by 2035 to meet demand.As more and more people, businesses and new power-hungry industries such as data centers and cryptocurrency come to Texas, a clear consensus has emerged among energy experts, business leaders and statewide leaders alike: We need all the electricity generation we can get.
However, despite the urgent need for new energy generation – and the widespread economic benefits that come with it – there are several bills in the Legislature that will severely restrict the buildout of clean energy, which accounts for the vast majority of new energy added to the grid in recent years.
The Texas business community strongly urges legislators to oppose any legislation that harms energy generation, and thus the state’s economy.
However, despite the urgent need for new energy generation – and the widespread economic benefits that come with it – there are several bills in the Legislature that will severely restrict the buildout of clean energy, which accounts for the vast majority of new energy added to the grid in recent years.
The Texas business community strongly urges legislators to oppose any legislation that harms energy generation, and thus the state’s economy.
Instead of wrapping energy generation in red tape, we should continue to practice the free-market principles that made Texas not just the energy capital, but the clean energy capital. We like to “build, baby, build” in Texas.
Sen. Phil King (R-Weatherford,) and Rep. Jay Dean (R-Longview,) introduced SB 1202/HB2304 to do just that by streamlining the approval process to install energy generation devices like solar and storage on homes. These bills will cut costs and increase energy resilience for homeowners and the entire state.
According to a recent report by the Solar Energy Industries Association, Texas added more solar and storage to the grid in 2024 than any other state, and we are also fast becoming a solar and battery storage manufacturing powerhouse.
Technologies like solar and dispatchable resources like battery storage are playing an increasingly large and important role in our state’s energy mix. According to the U.S. Energy Information Administration, battery storage – which would be difficult to build should the Legislature pass SB 388 – represented roughly 6.4 GW of additional utility-scale additions to the Texas grid in 2024.The Texas Comptroller‘s office agrees that battery storage is instrumental in stabilizing the grid, saying that battery systems “have proven their value to the Texas market by increasing reliability and reducing costs while allowing for greater stability in the integration of renewable resources.”
Fortunately for our grid’s reliability, in addition to battery storage making it easier to respond to fluctuations in demand at the drop of a hat, many industries coming to the state – like bitcoin – can adjust their power consumption up and down quickly.
Beyond powering our grid and homes, the energy sources that threaten to be curtailed by certain legislative proposals are also powering up Texas’ economy.
Fortunately for our grid’s reliability, in addition to battery storage making it easier to respond to fluctuations in demand at the drop of a hat, many industries coming to the state – like bitcoin – can adjust their power consumption up and down quickly.
Beyond powering our grid and homes, the energy sources that threaten to be curtailed by certain legislative proposals are also powering up Texas’ economy.
No state has more clean energy jobs than Texas. The solar industry alone has invested over $50 billion into the state’s economy. Landowners are investing lease payments from clean energy projects back into their farms and local communities, and 75% of Texas counties are expected to receive substantial tax revenue from clean energy projects, according to leading energy expert Joshua Rhodes, of the University of Texas at Austin.
We need to keep this momentum going.
Business leaders have many factors to consider when deciding where to invest – including taxes, workforce needs, and the regulatory environment. Energy resource adequacy is growing increasingly important in business leaders’ decision-making rubric; they need to know that they will be able to power their operations, affordably, well into the future.
We need to generate the power to drive future innovation.
Business leaders have many factors to consider when deciding where to invest – including taxes, workforce needs, and the regulatory environment. Energy resource adequacy is growing increasingly important in business leaders’ decision-making rubric; they need to know that they will be able to power their operations, affordably, well into the future.
We need to generate the power to drive future innovation.
We urge our state leaders to continue to make the right choice and support an all-of-the-above-and-below strategy for energy generation that includes oil and gas, solar, wind, nuclear, carbon capture, geothermal, hydrogen and battery storage.
Glenn Hamer is the President & CEO of the Texas Association of Business.
