The Texas electricity market is evolving. Low prices have helped natural gas become the dominant electricity generation resource, surpassing coal for the first time. The state’s unique competitive wholesale market, along with recently built transmission lines, have led to exciting opportunities for the rapid development of wind and solar generation. But in looking at the cost of various fuel sources and Texas’ energy future, confusion about electricity subsidies needs to be addressed.
Yes, wind and solar power have recently benefitted from the federal Production Tax Credit and Investment Tax Credit. That said, it’s important to recognize that natural gas and coal generation have enjoyed state and federal incentives for a century, and continue to do so.
The tax benefits for wind and solar generation are not the same as those for fossil fuel generation, but each plays a similar role: Tax benefits affect the final cost of electricity. Read More
Also posted in Coal, Natural gas
What would a world powered by clean, low-water energy look like? If you visit Israel’s southern region, you don’t have to imagine.
In 2011, Arava Power in the southern Israeli desert launched a 4.9 MW solar field (enough to power more than 3,000 U.S. homes). Since then nearly 200 times as much capacity – both fields and rooftops – has been installed in the region. By 2025, it’s likely solar will provide 100 percent of daytime electricity, plus excess, along the border with Jordan.
With solar technology more advanced and cheaper than ever, solar power can take off quickly in Texas, as it has in Israel.
The Arava Desert, where many of Israel’s solar fields are located, averages about 360 days of sunshine per year. Austin, where I live, averages about 300 days per year, and it’s not even as sunny as West Texas. But in January 2017, solar provided just 0.4 percent of power across the vast majority of the state. There is huge opportunity for solar growth in Texas. Read More
It’s that time again. Texas leaders are meeting in Austin for the 85th Legislative Session and the next five months will be an interesting wrestling match over human rights, voting rights, bathroom rights, and local rights.
But what about our economic rights? A new report Environmental Defense Fund (EDF) issued to the Texas Legislature, Texas’ Clean Energy Economy: Prioritizing Jobs, Investments, and Growth, shows the Lone Star State’s evolving electricity landscape has created enormous economic growth and jobs. The report explores the policies put in place years ago that has allowed Texas’ power market to become cleaner and more affordable, and it outlines the state’s impressive job growth in energy efficiency, wind, and solar power.
The report urges our leaders to develop and implement a bold, comprehensive Texas energy plan to create well-paid jobs, drive innovation and investment, make us more energy independent, and protect our water supplies, while improving the health of Texans and the environment. Read More
For one scorching week in August, Texas broke electricity-use records on three different days. And the main grid operator met that exceptional demand every time.
That’s because the grid operator’s top priority is right there in its name: the Electric Reliability Council of Texas (ERCOT). ERCOT deploys many tools to ensure the lights stay on, including Reliability Must-Run (RMR) agreements, which keep open a power plant – like a coal or natural gas plant – that otherwise planned to stop or suspend operations. Recently, there has been concern that the use of RMRs may increase due to market conditions, specifically low electricity prices that are forcing uneconomic plants to retire.
RMRs serve a critical purpose. But as technology transforms the way we power our lives, we need smart policies that recognize the unprecedented array of new energy options. ERCOT currently is in the process of revising its rules, and Environmental Defense Fund has a few recommendations on how the grid operator can improve its approach to reliability agreements, so Texans can enjoy a healthier, cleaner, and more affordable energy future. Read More
Also posted in ERCOT Tagged reliability
By: Laura Sanchez, EDF Climate Corps 2016 Fellow
Like many booming cities, Texas’ capital is experiencing overwhelming demand for affordable housing. Austin’s Mayor Steve Adler highlighted the affordable housing crisis shortly after taking office in January 2015, and urged the use of Property Assessed Clean Energy (PACE) to help encourage affordability. PACE enables commercial, industrial, and multifamily property owners to improve the water or energy efficiency of their buildings – without having to worry about steep upfront costs. Investing in these types of upgrades can reduce a property’s operating costs, as well as tenants’ utility bills.
That’s why I spent this past summer with Environmental Defense Fund (EDF), as an EDF Climate Corps Fellow with Texas PACE Authority, the PACE program administrator in the state. In June 2016, Mayor Adler created a committee of housing experts to determine how to leverage PACE for affordable housing. Alongside the committee, I worked to size up the opportunity, benefits, and challenges of using PACE to help pay for upgrades to affordable multifamily-housing properties.
After conversations with officials and program administrators from over 30 public for-profit and non-profit entities, we found there are significant opportunities – in Texas and nationwide – for the affordable multifamily-housing sector to leverage PACE. We are proud to present a new whitepaper that can serve as a guide to unlocking water, energy, and cost savings. Read More
Also posted in Energy Efficiency Tagged PACE
This year has seen historic flooding across the South. In addition to the devastating rains that recently hit Louisiana, severe floods pummeled Texas earlier this year. In both cases, the states’ National Guards were first responders, rescuing families, delivering meals and supplies to survivors, and providing local agencies with high-water trucks, boats, and helicopters.
As the frequency of extreme weather events like these increases, it is imperative that the National Guard can continue devoting resources to critical, first-responder services. But in Texas, those services could be threatened by the state’s dwindling water supplies.
A new study from CNA Analysis & Solutions, funded by Environmental Defense Fund and in collaboration with the Texas Army National Guard (TXARNG), shows many Texas defense facilities are in water-stressed counties. Over time, this could result not only in higher water costs, but also power production constraints, since it requires a lot of water to produce and move electricity from traditional energy sources like coal and natural gas. Both of these challenges pose a direct threat to the budget and operating capabilities of the TXARNG. Fortunately, the analysis also indicates these same areas have great potential for solar energy, which requires little to no water to meet power needs on-site.
By tapping into that potential and pursuing bolder energy efficiency initiatives, TXARNG could ease pressure on the electric grid and reduce utility bills, all while safeguarding residents and precious water supplies. Read More