For decades, energy has been valued by two basic metrics: reliability and affordability.
Now, with the United States locked in a far-reaching economic competition with China, a third critical factor has emerged — speed. How fast can new resources plug into the grid to serve growing electricity needs?
That’s especially important as China adds new generators at a startling pace. In just the month of May, China plugged in 93 gigawatts of new solar power capacity. That’s more electricity than Texas’ entire ERCOT grid has ever used in a day.
While energy has always been a driving economic force, it’s never been more important than it is now. Artificial intelligence, advanced manufacturing and other industries that are shaping the modern economy require dramatically more electricity than the nation currently produces.
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Quite simply, we need new generation sources as quickly as possible.
But there’s good news from Texas. The state’s business-friendly regulatory structure and competitive energy market offer a unique opportunity to lead the fast energy build-out that America needs. It’s easier and faster to build energy in Texas than almost anywhere in the country.
Texas leaders need to capitalize on their advantage with wide-ranging, growth-focused energy strategies that build on Texas’ unique strengths — and shut down anti-energy policies that undermine our economy.
By focusing on energy technologies that can be built most rapidly and affordably, Texas can meet ERCOT’s massive growth projections and bolster American competitiveness with China.
In much of the U.S., high costs, slow approvals and burdensome regulations limit energy growth. But by emphasizing competition and eliminating red tape, Texas has ensured that the number and speed of interconnections beat every other market — by a long shot.
Speed is critical right now, especially given China’s massive energy build-out. In just the first five months of this year, China added more than 260 gigawatts of new renewables — that’s about 20% of the entire U.S. grid capacity today. By contrast, the U.S. installed about 18 gigawatts of total capacity in the same time, more than 90% of which were renewables and storage.
It’s crucial to move the energy we need onto the grid faster, and Texas is best positioned to help. Fifty gigawatts of solar and storage are expected to plug into U.S. power grids this year, 40% of which will be built in Texas.
This year, the Texas Legislature wisely rejected policies that would have made it slower and more expensive to build immediate energy resources while also establishing a framework to support the development and deployment of future resources, such as advanced nuclear plants, through House Bill 14 and Senate Bill 1535.
Leaders kept Texas open for business, ensuring that the fastest, relatively low-cost energy resources — solar power and battery storage specifically — can still be built here as quickly as energy-hungry industries demand.
It’s now up to regulators to ensure we keep all resources on the table, including renewables and storage.
These resources kept the grid up during this summer’s heat with lower energy costs and without an emergency order. As our study shows, planned renewables and battery storage projects will reduce wholesale energy costs in ERCOT by a projected $115 billion over the next 15 years.
State regulators should implement pro-energy policies this year to allow all new energy resources to come onto the system as quickly and cheaply as possible. That includes creating streamlined, consumer-friendly regulations around transmission lines and technologies, energy market data and backup power.
Our nation needs all the electricity it can get. And we need Texas to help deliver it.
The Lone Star State has long stressed the importance of both reliability and affordability in its energy policies, and it’s attracted a huge amount of investment from major energy users. Those energy users are now moving a lot faster. It’s time for Texas policymakers to add speed to their equation.
Rich Powell is the CEO of the Texas Energy Buyers Alliance, the state chapter of the Clean Energy Buyers Association, a trade association that activates a community of energy customers and partners to advance reliable, affordable clean energy for Texas.