Powering rural Texas: Key insights into the state’s evolving energy landscape

The Lone Star State must address three critical areas to ensure that its grid can maintain reliability while meeting the increased demand for renewable energy.

For decades, Texas has ranked first in the country for net natural gas and coal generation. Today, the Lone Star State also claims second place in net solar generation and first in new energy storage capacity. Industry experts predict that this growth trend will continue; the Solar Energy Industry Association (SEIA) estimates that the state’s installed solar capacity will increase by more than 50.5 GW over the next five years.

To capitalize on this immense potential, Texas must address three critical areas to ensure that its grid can meet increasing renewable energy demand and maintain reliability.

Bridging the demand gap in transmission needs

The Electric Reliability Council of Texas (ERCOT) oversees more than 680 power plants and 46,500 miles of transmission lines, managing the power supply for 26 million Texans and accounting for roughly 90% of the state’s total electricity demand.

Renewable energy generation continues to grow at historic rates, yet ERCOT must prepare for an additional 67 GW of demand by 2030 – a 78% increase from 2023. Meeting this challenge requires massive investment in transmission infrastructure. Texas utilities have committed $13.6 billion over the next two years to upgrade 4,600 miles of transmission lines, install transformers, and enhance other critical components to bridge this demand gap.

Empowering rural energy through electric co-operatives

Electric co-operatives are the backbone of Texas’ rural energy landscape, serving approximately 75% of the state’s land area. These nonprofit, member-owned utilities power 3 million customers in rural areas, small towns, and suburbs. Increasingly, co-ops are investing in renewable energy and energy storage projects, signaling a shift toward local, sustainable power generation. Supporting these co-ops’ transition is crucial for ensuring reliable energy access across rural Texas.

Modernizing infrastructure to meet evolving demands

Many providers face challenges in maintaining reliability across vast, sparsely populated areas, where remote locations can delay repairs and upgrades. Additionally, some regions are experiencing economic growth and higher energy demand, while others are seeing their populations decline. Grid modernization, including the integration of distributed energy resources (such as EV chargers), is essential. Adopting innovative technologies and strategic planning will help rural energy providers meet evolving priorities and bolster grid resilience.

By addressing these critical considerations, Texas can unlock its full solar and storage potential, ensuring a sustainable, reliable, and affordable energy future for all Texans.