Authored by APA Vice President Judd Messer
Source: Fort-Worth Star-Telegram
Across Texas, renewable energy is increasingly contributing to a stronger, more reliable grid while saving consumers each month on their electric bills.
For too long, however, the growth of renewable energy has been wrongly blamed for rising power prices in Texas. These assertions disregard the clear evidence and ignore the broader set of factors that are actually driving electricity costs. As demand for power skyrockets, it’s essential that we ground this debate and our policy decisions in data — not rhetoric.
The data tells a clear story. During January’s winter storm, wind generation outperformed forecasts in all but four hours of the 72-hour storm and solar alone supplied nearly 40% of electricity demand at one point. Last summer, as Texas temperatures climbed into triple digits, renewables hit all-time generation records for the Electric Reliability Council of Texas.
Since 2021, renewables contributed significantly more during the hottest hours of the summer when power needs have traditionally been highest. This growth has benefitted the grid in many ways; ERCOT has not issued an energy emergency alert since the fall of 2023, underscoring the role renewable energy plays in supporting reliability.
Texas continues to lead the nation in both renewable energy production and affordable electricity. Today, power prices in Texas remain below the national average and are increasing at a slower rate. In November, for example, residential consumers paid about 16 cents per kilowatt-hour of energy used, up just under half a cent from a year ago. Over the same period, customers nationwide averaged nearly 18 cents, an increase of almost an entire penny.
Texas performs even more strongly when comparing residential, commercial and industrial rates. One recent study suggests that limiting additional renewable energy capacity would increase the cost of electricity for Texas households by nearly $2.6 billion each year.
At the wholesale level, the benefits are even more pronounced. Another study estimates ratepayers save about $1 billion per month in wholesale electricity costs, largely due to the low operating costs of renewable generation and its rapidly growing share of the state’s generation mix.
That boost is made possible by the state’s abundant natural resources and a streamlined grid interconnection process. It was especially clear during the winter storm, when strong contributions from low-cost renewables and battery energy storage limited the maximum real-time price to less than half of expected levels.
So, why do so many get this wrong? Many reduce a complex question’s answer to a single soundbite, but electricity prices are shaped by far more than power generation. Considering the issue in a vacuum oversimplifies the facts at best and misleads the public at worst. In no particular order, fuel prices, the impact of extreme weather on grid infrastructure, inadequate and aging transmission capacity, inflation and taxes all play significant roles in what Texans ultimately pay on their monthly electric bills.
As an example, natural gas generation still makes up the largest share of Texas’ electricity mix and therefore plays the primary role in setting the price for all generators. When natural gas prices rise and fall, wholesale electric prices follow suit, regardless of how much renewable energy is on the system at that time. Aging and congested transmission lines have also cost ratepayers an average of nearly $2.5 billion in each of the last five years.
Blaming renewables for rising electricity prices ignores these realities and is, unfortunately, often driven by deliberate efforts to politicize energy and mislead the public. Stifling the development of renewable energy, as some have proposed, would increase Texans’ electricity prices, mean greater risk of power outages and curtail economic development opportunities for our communities.
Renewables are not the problem behind higher energy prices; they are part of the affordability solution. By embracing all forms of energy, Texas keeps power cheaper, strengthens the grid and fuels economic growth. If we want a reliable, affordable and forward-looking energy future, the path is clear: Expand opportunities for power generation.