Texas- The Renewables State

Why is Texas at the forefront of renewable energy production in the United States? Because a decade and a half ago the State had a vision and demonstrated its commitment to increase green energy production through a combination of legislation and Government funding. Contrast and compare this approach to the Texas of the seventies and eighties where the oil business ruled the roost. It’s a breathtaking turnaround and to be applauded and yes, imitated, by other States of the Union.

Texas thrives on a market-driven system with genuine competition, incentives for renewables and other factors. Electricity customers have more choices and prices are lower than they would be without State encouragement.  For example, a great step forward was taken in 1999 when a Senate Bill brought electric power competition in Texas. One of the stated goals of this legislation was to encourage the addition of clean energy into the Texas power grid. The Bill promoted the growth of renewable energy by establishing the Texas Renewable Portfolio Standard (RPS). This is the amount of power sold in the state that must be generated using renewable sources. In one stroke the RPS created a viable market for renewable power by requiring the State’s electricity providers to either construct renewable generation facilities themselves or buy renewable power in from other firms which did so.

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Unlike some other countries where there has been a reluctance to embrace genuine competition and where the anti-wind lobby has managed to scupper or slow new developments, Texas energy providers have far exceeded expectations:  The original RPS standard to be achieved was 2,000 MW of extra, new renewable resource generation capacity by 2009. That level was met three years early in  2006.  Not resting on their laurels, the State Legislature upped the ante by passing another Senate Bill, which increased the target to 5,880 MW of renewable energy by 2015 and 10,000 by 2025.  This included 500 MW from non-wind renewable sources.  Staggeringly, Texas achieved and exceeded the 2025 goal in 2010, some 15 years early!

Unsurprisingly,  Texas leads the way in wind capacity among all other states by an impressive margin. It boasts 12,214 MW installed as of June last year (figures from the American Wind Energy Association- AWEA). That’s more than twice as much as any other state. The Lone Star State also ranked first in new installations in 2012, with an addition of almost 1,826 MW. Wind provided over 7% of the State’s electricity in that year.

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Texas has some ideal environments for onshore wind farms, with wide open spaces and plenty of wind, such as West Texas. But the trick is to get the power that’s generated there to the main areas of population, the large towns and cities. The Electric Reliability Council of Texas (ERCOT) was tasked to come up with the optimal way to link these areas to the population centres where the demand for electricity was (and is still) high. After reviewing potential routes and options, ERCOT initiated a plan in 2008. Power conveyancing and transmission projects involving billions of dollars in investment and years of construction have been ongoing since that time. These power lines originate at the wind farms around Amarillo and the High Plains, the Permian Basin, Abilene and west of San Angelo. From there, most go east to serve the large metropolitan areas.

The problems in achieving this should not be underestimated. Apart from the money required, there were sensitivities around the lands to be crossed and landowners to be won over. Over 3,500 miles of power lines were required. Also the technology required was (and still is) cutting edge  and required a leap of faith from investors and transmission companies. These companies will recover their outlay through fees paid by the retail providers of electricity.

It all came together at the end of last year when all of the major transmission projects in the ambitious plan were completed. The enormous resource of wind power is now being utilized and the the visionaries who conceived the plan and those who worked to make it a reality can feel justly proud.

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