Although Texas is currently a leader in energy use, the state is far from a renewable energy utopia. Texas still relies on oil and gas for its energy, so windmills are rare and solar panels not widely available. State support will be required for a widespread transition to renewable energies.
Natural gas
Texas' natural gas industry is a major part of its economy. The oil and gas sector employed 312,000 people in 2006 and contributed 14.9% to Texas' gross state product. But what happens if natural gas prices continue to rise? What impact will this have on ratepayers? And what can Texas do?
In Texas, natural gas production is concentrated in and around the Gulf of Mexico. Nearly three percent worldwide's total natural gaz reserves is found in Texas, Louisiana, and the United States. The state is home of the nation's largest processing capacities. The Barnett Shale, Texas' largest onshore natural-gas field, is located in Texas' Bend Arch-Fort Worth Basin.
The pipeline will be able to transport enough gas to supply 1.5million homes in Texas every day. It also has the potential to deliver enough gas to Europe and other European countries. This will be a boon for Texas' growing demand for natural gas to power its air conditioners. However, the state's grid reaches peak demand on Monday, and the Public Utility Commission of Texas (ERCOT) has asked consumers to conserve energy.
Numerous oil and natural gas companies call the state home. The agencies regulate how companies run their operations to protect the environment and public health. They regulate air emissions as well as flaring. Operators can be denied permits to operate in Texas if they do not adhere to these rules.
Wind energy
Texas has wind energy as part of its overall energy mix. There are over 150 wind farms in the state, which produce over 30,000 MW of electricity. This makes the state a major source of renewable energy. It also accounts for a large portion of its energy usage. Texas' wind energy is expanding rapidly and the government is investing heavily.
Texas' wind energy boom is bringing many benefits for the state, both in terms of cost and in terms of environmental impact. This growth can pose challenges to grid reliability. This is why policymakers must address these issues now to prevent a crisis. Analysts suggest many solutions but none of them have been proven to work. A combination of pure free and capacity markets may prove to be the most efficient.
Both wind power and solar energy play a significant role in Texas' energy mix. Although solar energy is a smaller part of Texas' electricity mix, it is still growing rapidly. Texas generated about 4% of its electricity last summer from solar energy. This figure is expected to rise to 7.2% in the coming summer. Summer is when winds are slower so solar energy will be particularly important. It is also more difficult for the sun to shine during the summer. Therefore, solar energy will be needed to manage the summer heatwaves.
Texas is a leader for wind power generation and wind power projects are rapidly becoming more popular. The state is second in size after Alaska and has numerous wind sites that are available for development. Wind power projects can also be cheaper than electricity produced from coal. A wind turbine farm can be built in Texas with minimal effort.