These days, the word “Texas” is synonymous with energy. The state has oil and natural gas reserves that surpass whole nations. They produce more than 11% of the electricity of the entire United States and consume more energy than any other state (by a long shot).
That means all energy-conscious eyes will be on Texas for the foreseeable future. The question is: what will Texas’ energy production look like several decades from now?
A Changing Landscape
Though you might not know it from the headlines, Texas’ energy production has shifted dramatically in recent years. Coal-fired electric plants, which accounted for 37% of Texas’ electricity production in 2009, shrunk to 20.3% of the state’s production in 2019.
Conversely, wind power has more than quadrupled from 6% to 20% in the same decade. Today, natural gas dominates with 47.4% of all electricity production, while nuclear makes up 10.8%, and solar just 1.1%.
Renewables: The Elephant in the Room
In Texas, renewables are many things: a source of excitement, an object of misunderstanding, a great opportunity, a political straw man. People’s opinions on renewables are often as strong as their opinions on the state’s best barbeque or who should win the congressional race.
However, the case for renewables in Texas seems increasingly inarguable. The fact that wind power alone can supply adequate electricity for a fifth of the state’s needs is remarkable. The state receives enough sunlight to provide 22,787 TWh/year with large solar infrastructure — that’s 62 times more than what the state currently uses.
Despite providing only 1.1% of the state’s energy needs today, solar capacity has grown by a factor of nearly 2500 in the last 13-14 years. Texas has the second-largest number of homes with rooftop solar in the country after California, with around 780,000 homes and a cost payback period of around 12 years.
Though misinformation has run rampant, renewables were not any more responsible for the February 2021 energy crisis in Texas than other forms of energy. The effect of the crisis on the state’s energy companies and future will be interesting to watch. Texas’ population is increasingly younger and more racially diverse, which may also impact political support for renewables.
Natural Gas: King of Energy
Texas is a gas state. With 163 natural gas plants in the state producing around 20 billion cubic feet per day, Texas produces far more natural gas than any other state in the country. Texas’ natural gas output accounts for nearly 15% of its entire GDP.
It’s no wonder, then, that natural gas reigns supreme in the Lone Star State. The electricity provided by natural gas is so pivotal in the state’s infrastructure that, when it fails, it tends to bring down other power sources with it. As an energy source, it is nearly twice as clean as coal in terms of CO2 production.
However, several factors may conspire to challenge natural gas’ supremacy in Texas. Natural gas is mainly methane, and leaks from drill sites account for nearly 30% of all methane emissions in the U.S. and around 3% of its greenhouse gas emissions. Prospecting, fracking, and producing natural gas also take a toll on the environment.
Texas’ Exciting Future
All of this is to say that Texas is primed for some high drama on the energy field. Natural gas has plenty of infrastructure, financial gain, and political support behind it. Still, the decreasing cost and rising efficiency of renewables will continue to make them competitive in Texas’ changing energy landscape.
No matter how things change, one thing will stay constant: Electricity Scout will be here to help you compare electricity rates among Texas electric companies. We make it simple to find the best cheap electricity available.
