What do you think of this article on renewable energy in Texas by Ketan Joshi?

2 comments

1. The differences between Texas and California’s regulatory set ups are not as big as this article makes them seem. They both have day-two organized power markets where the large munis do not really participate (though that is changing in California). Texas went further on the retail side and killed the traditional utility. California keeping utilities around post 2001 meant the state was able to make them enter into big, above cost contracts for wind and solar before they were profitable. I think that benefited Texas as it helped stand up a national renewable industry. Texas ran away as the wind leader more than a decade ago, partially because it has better resources for wind than California. California might have a lead for now in solar, but Texas is going to win that race some time this decade. Texas will likely build more batteries. I would give Texas a better chance of eventually building nuclear too. Texas has much easier permitting rules to get anything built, not just energy infrastructure.

   Another massive difference is demand. California is way better on efficiency, but Texas has to use more power for air conditioning than California does. Also Texas is poised to see its demand (already the number one state by far in power use) by almost 50% by the end of the decade due to data centers, bit coins, ongoing electrification of oil drilling, and just economic growth generally.

2. “percentage of power renewable” is really a meaningless measure. In 20-30 years ~all energy must be coming from power.

   So what share of your current power use is renewable, more just reflects how far behind on electrification you are.

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