Energy Exchange

Big (REALLY Big) News In San Antonio

Earlier this week I posted a few of the great clean energy stories throughout Texas, with a glancing reference to the exciting work going on in San Antonio.  Almost as soon as the post went up San Antonio’s electric utility CPS Energy (CPS) made an announcement that is truly astounding: because of the increasingly lower costs of solar power and rising costs of fossil fuels, they have increased their bid for a solar power plant from 50 MW to 400 MW.  I’ll let that sink in a little, but I’ll just say this: they mean it.

It’s been fascinating to watch this historical shift over the last several years at CPS (the largest utility of its kind in the nation) from a conventional utility with conventional power plants to a national leader in wind and solar.  It’s a story that is probably worth several blog posts in its own right, and unfortunately we don’t have the space to go into it today.  While cities like Houston, Austin & San Antonio are leading the way on clean energy, the state of Texas is still falling behind.

Charlie Brown And The Football

Source: PBS

When the state legislature wrapped up their session with little help to offer the solar industry and other forms of renewable energy, there were few opportunities left for a stable regulatory framework for renewable energy in Texas.  The best hope was for the Public Utilities Commission (PUC) to enact the goal for non-wind renewable energy in the state set by the Texas Legislature in 2005, which expires today with the deadline to consider the rule proposed in January.  It’s no surprise that the wheels of commerce turn faster than the gears of government, but it’s taken seven years for the PUC to come close to finally enacting this goal and it looks like they’re going to drop the ball again. 

When it comes to clean energy in Texas, it reminds me of Lucy and the football from Charlie Brown: every time the state gets close to creating a market for solar power, they yank the football away again.  The PUC proposed this rule back in January and has apparently decided to back out of it.  Senator Troy Fraser, historically a champion of solar power filed his bill that came very close to passing last session but failed to bring it up for a hearing this session despite being Chair of the Committee the bill sat in.  Governor Perry has championed Texas’ leadership in wind energy as proof that Texas can create good clean energy policy, but sent mixed signals this session, leaving open the question of whether or not he supports solar power or other renewables as he does wind.

Will Texas Be The Clean Energy Capitol?

Businesses can’t operate under that kind of uncertainty, and the solar industry is the fastest growing industry in the U.S.  A handful of Texas cities, like San Antonio, Houston and Austin, are working hard to capitalize on that growth by creating new jobs locally, but without a stable statewide policy, businesses won’t come to or stay in Texas.  Just last week, the U.S. Department of Energy announced $4.5 billion in loan guarantees for solar projects.  Unfortunately, none of the projects are in Texas, though, because the business climate is too uncertain in our state to get solar projects of the scope and scale needed to attract that kind of business. 

In my last blog post I mentioned a company, AETI, with a long history in Texas’ oil and gas industry that has begun to move into the world of renewable energy.  Their CEO, Charles Dauber wrote in May about the need to look forward and not only backward in the search for jobs.  I think his conclusion bears repeating: “While our dominance in oil and gas was dictated largely by location and good fortune, the economic boom that comes with our new energy economy is not guaranteed. We will either be reaping the rewards of the tens of thousands of jobs brought to Texas from renewable energy industries or be importing parts and services from California, New England or locations outside of the United States, including Europe and China.”

In just the past two weeks there have been some exciting announcements from clean tech businesses across the state:

Old Dog Learns New Tricks

First up on the list of new TX success stories is actually a company that’s been established in the oil and gas industry for almost 70 years.  AETI was founded in Beaumont, TX to provide what they call “power delivery solutions” – basically the electrical products, technologies, and services used to connect power generation sources to the users of that power. 

Last Monday, AETI’s Integrated Solar Inversion Station (ISIS™) crossed the final hurdle needed before it can be used by utility-scale solar developers.  The ISIS is the first 1000 volt, 1megawatt (MW) solar inverter approved by a certified test laboratory for use with distributed energy resources.  AETI is a company that, after 60 years in the oil and gas industry, decided to diversify into renewable energy to grow profits and stabilize their business.  To me that sounds a lot like Texas: almost one hundred years after Spindletop, a wind rush started in the state which helped keep electric prices low in the face of rising fossil fuel costs.  As their CEO, Charles Dauber wrote in the Houston Chronicle in May: “I believe that just as my company found strength in realizing its role in our nation’s energy future, so too can the state of Texas.”

Industry Leaders Join Pecan Street Project

AETI isn’t alone: Last week the Pecan Street Project announced the formation of its Industry Advisory Council.  With such household names as Best Buy, Intel, Sony, LG and Texas Gas Service, the formation of this council shows that industry players across the spectrum want to be involved in a cleaner, more secure energy future.  In fact, as these companies will often say, they need to be involved to make sure they stay profitable as the energy industry continues to move in new directions.

Come On In, The Water Is Fine!

Next on the list of exciting announcements (but certainly not least in terms of size) is Baryonyx, a Texas based offshore-wind energy company that took their first step into Texas waters (pardon the pun) by applying for a permit with the U.S. Army Corps of Engineers.  Baryonyx is leasing the state-owned sites from Texas’ General Land Office (GLO), providing much needed income for the state’s Permanent School Fund.  Earlier this week I had the chance to meet with GLO Commissioner Jerry Patterson who feels confident that Baryonyx will have the first offshore wind farm built in the U.S.

(The Best Kind Of) Leadership Struggle

Finally, followers of Texas clean energy industry have known for some time that Austin isn’t the only town vying for Texas’ clean energy crown and the jobs that come with it.  Already the state’s leader in solar with 14 MW and another 30 MW on the way soon, San Antonio recently announced some more great news in the form of not one, not two, but five clean technology companies partnering with the city to bring jobs and clean energy.  Not one to sit on the sidelines as the energy industry continues its shift towards clean technology, Houston continues to attract national attention as a growing hub for clean energy.

For old manufacturing companies and the Silicon Valley set, for cities steeped in oil or just looking to attract new jobs, the clean energy economy seems to be the natural choice to grow a business.  And Texas, America’s oil and gas capital for the last hundred years, has a chance now to be our clean energy capital as well.  Companies like Baryonyx and AETI, and forward-looking city efforts from San Antonio, Houston and Austin’s Pecan Street Project are making sure that Texas is in a position to do just that.