The Lone Star State is leading the charge in renewable energy, meeting increasing electricity demands with solar, wind, and battery power, as reported by the U.S. Energy Information Administration (EIA). This shift marks a significant evolution in how Texas powers its growing economy and population.
During the initial nine months of 2025, the Electric Reliability Council of Texas (ERCOT) experienced unprecedented demand, maintaining its status as the fastest-growing electricity grid in the United States. This trend of rising demand is projected to continue, with over 200 gigawatts of large load interconnection requests from major energy consumers like data centers and industrial complexes looking to tap into Texas’ wholesale electricity market.
Solar energy has been at the forefront of this renewable surge, with utility-scale solar projects contributing significantly to ERCOT’s capacity. In conjunction with wind power, renewables accounted for over a third of ERCOT’s electricity needs in the same time frame, according to the EIA. Solar alone generated 45 terawatt hours of power—an impressive 50 percent increase from the previous year and nearly quadruple the output of 2021.
This solar boom has reduced the dependency on gas-fired power during midday, despite earlier legislative efforts to limit renewable energy development. Dennis Wamsted, an energy analyst, noted that in Texas’ deregulated market, renewables are the preferred choice: “People are going to build solar and wind, and now battery storage, essentially as quickly as they possibly can. It’s economic—it is what customers want.”
ERCOT’s expedited interconnection process makes it an attractive location for rapid renewable project development. The favorable regulatory landscape enables generators to engage in power purchase agreements with companies, securing stable pricing and fostering a conducive environment for large-scale renewable energy projects.
Wamsted highlighted that the reliability and cost-effectiveness of renewables drive their growth: “It wouldn’t be happening if they weren’t also reliable and cost effective. Nobody’s running out to build something that’s overpriced and can’t be counted on.”
Looking ahead, Nathalie Limandibhratha from BloombergNEF indicated that ERCOT’s supply should match demand over the next five years. However, by 2035, a potential imbalance looms if demand continues to outpace supply, partly due to a slowdown in thermal energy expansion post-2030. Meanwhile, forecasts for solar and storage have been revised upwards due to rapid market developments.
Despite natural gas currently providing 43 percent of ERCOT’s power, its growth has plateaued. In contrast, wind power has seen a 4 percent increase from last year and a 36 percent rise since 2021, overcoming political challenges. Notably, former President Donald Trump vowed to halt new wind energy projects, yet ERCOT remains a leader in wind interconnections.
A recent report by Wood Mackenzie and the American Clean Power Association suggests that while Texas is a current leader in wind installations, the Midwest might surpass it by 2027 and 2028.
Original Story at insideclimatenews.org