Texas Can Accelerate U.S. Energy Production to Compete Globally

The United States is facing an urgent need for energy resources to compete effectively with China, particularly as that nation rapidly expands its electricity generation capacity. In May alone, China integrated an astonishing 93 gigawatts of new solar power, surpassing the total daily usage of Texas’ entire ERCOT grid. With industries such as artificial intelligence and advanced manufacturing demanding more power than ever, the U.S. must find ways to increase energy production swiftly and efficiently.

Texas stands out as a potential leader in this energy race, thanks to its business-friendly regulatory environment and competitive energy market. The state has positioned itself as a prime location for rapid energy expansion, making it easier and faster to build new energy resources compared to almost anywhere else in the country. As Texas leaders and policymakers recognize this unique advantage, they are called upon to implement strategies that focus on sustainable growth in energy production while dismantling policies that hinder economic progress.

Texas’ Energy Advantage

The state’s regulatory framework allows for a streamlined process in energy production, an essential factor as competition heats up with China, which added over 260 gigawatts of renewable energy in the first five months of 2023. In stark contrast, the U.S. managed to install only 18 gigawatts during the same period, with over 90% of that being renewable and storage capacity. This discrepancy highlights the need for the U.S. to expedite energy generation to keep pace with international competitors.

This year, Texas is set to contribute significantly to national energy needs. Approximately 50 gigawatts of solar and storage capacity are expected to connect to U.S. power grids, with 40% of that total originating from Texas. The state legislature recently took proactive measures by rejecting policies that would have delayed energy resource development. Instead, they have established a supportive framework for future advancements, including advanced nuclear plants, through legislation such as House Bill 14 and Senate Bill 1535.

Future Energy Developments

Texas’ commitment to a diverse energy portfolio has proven effective, particularly during extreme weather conditions. This summer, the state’s renewable resources and battery storage solutions played a crucial role in maintaining grid stability while keeping energy costs low, all without the need for emergency orders. According to a recent study, planned renewable and battery storage projects could reduce wholesale energy costs in ERCOT by a projected $115 billion over the next 15 years.

Regulatory bodies must prioritize the rapid integration of all energy resources into the system. Streamlining regulations concerning transmission lines, energy market data, and backup power will be vital. As energy consumption continues to rise, it is imperative for Texas to remain a focal point in delivering the resources necessary to meet these demands.

The Lone Star State has long emphasized reliability and affordability in its energy strategy, attracting substantial investment from major energy consumers. As these consumers increasingly accelerate their operations, Texas policymakers are urged to add speed into their energy equation. By leveraging its unique strengths, Texas can help bolster U.S. competitiveness against global challengers like China.

Rich Powell, the CEO of the Texas Energy Buyers Alliance, emphasizes the necessity for swift action. As the energy landscape evolves, Texas must remain open for business, ensuring that the fastest and most cost-effective resources can be developed to keep pace with a growing economy and the world’s shifting energy dynamics.