Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Podcast

How Texas Could Destroy Its Electricity Market

Rob and Jesse talk with Texas energy expert Doug Lewin.

The rotunda of the Texas statehouse.
Heatmap Illustration/Getty Images

Texas is one of the country’s biggest producers of zero-emissions energy. Last year, the Lone Star State surpassed California to become the country’s No. 1 market for utility-scale solar. More solar and batteries were added to the Texas grid in 2024 than any other energy source, and the state has long dominated in onshore wind.

But that buildout is now threatened. A new tranche of bills in the Texas House and Senate could impose punitive engineering requirements on wind, solar, and storage plants — even those already in operation — and they could send the state’s power bills soaring.

Doug Lewin is the founder and CEO of Stoic Energy Partners in Austin, Texas. He writes the Texas Energy and Power Newsletter, and he is the host of the Energy Capital podcast. On this week’s episode of Shift Key, Jesse and Rob talk with Doug about how Texas became a clean energy powerhouse, how it has dealt with eye-watering demand power growth, and why a handful of bills in the Texas statehouse could break its electricity market. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap, and Jesse Jenkins, a professor of energy systems engineering at Princeton University.

Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.

You can also add the show’s RSS feed to your podcast app to follow us directly.

Here is an excerpt from our conversation:

Robinson Meyer:  What is the menagerie of legislation here that folks need to understand? What should they be following?

Doug Lewin: There’s a couple of different flavors of this. There’s a bunch of them that are just right up, they’re on a level like 1A, 1B, 1C, 1D — they’re all major, major problems that if any of them passed, the cost for all consumers in Texas would go up. And this is something that I think is starting to set in at the legislature right now — that members are starting to think about, what does this vote look like? If I actually take this vote and power prices go up 20%, 50%, 80%, what have I just done? That’s starting to set in.

But I would say one of them that is the most pernicious — and I think you’re going to see this around the country as a lot of the national groups start talking about it more and more — is firming requirements on renewables and assigning them to individual projects, or even individual developers across their portfolios. Because as you guys know, and I think most of your listeners know, but legislators don’t necessarily know yet — they’re getting an education in real time right now — you don’t firm for individual resources. You firm for a system, right? That is far more economically efficient. '

And we should talk about the right level of how many backups we need. Those conversations have been going on for years, and they continue to go on in Ercot stakeholder forums and at the Public Utility Commission. But to require every resource to have its own backup, you create, as I heard one witness at one of the hearings say, you’ve got a thousand mini Ercots, right? Everybody’s gotta have their own backup. That is an insane way to run an energy system.

Meyer: Can you just describe what exactly you mean by — like, what would it mean to firm up solar? What do these bills actually require?

Lewin: One of them actually requires solar to have full, 24-hour, round the clock backup. So like, forget the fact that solar has meant so much for Texas in the summertime. We had no conservation alerts last year, 2024, the sixth hottest summer in the history of the state. Not only did we not have any blackouts or energy emergencies, not even a conservation alert, all summer long. Because that 30 gigawatts, when it’s hottest, when it’s 105 degrees [Fahrenheit] and all those air conditioners are cranking all around Texas — we love our air conditioning — solar is just perfectly suited for that. But no, you would have to back it up around the clock.

Music for Shift Key is by Adam Kromelow.

Green

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Politics

House Republicans Take Their First Real Swipe at the IRA

The Transportation and Infrastructure Committee released a budget proposal that attempts to claw back nearly $9 billion in grants.

The Capitol, money, and solar panels.
Heatmap Illustration/Getty Images

The House Transportation and Infrastructure Committee released the first draft of its portion of Trump’s big budget bill on Tuesday, and it includes the first official swipe at the Inflation Reduction Act of the months-long process ahead.

Remember, the name of the game for Republicans is to find ways to pay for Trump’s long list of tax cuts. The budget framework Congress passed two weeks ago assigned eleven House committees to craft proposals that would each raise or reduce revenue by a specific amount to accomplish Trump’s agenda.

Keep reading...Show less
Donald Trump.
Heatmap Illustration/Getty Images

Chaos, uncertainty, “we don’t know yet.” These are words I’ve heard more during Donald Trump’s first 100 days back in the White House than I’ve heard at any other time as a reporter.

That’s not to say there haven’t already been real-world impacts. Trump has gutted the staff of key agencies dealing with climate policy and science, and shut multiple offices focused on environmental justice. His administration has taken offline thousands of web resources related to climate change and shut down a $5 billion offshore wind project that had just started construction. And then there’s the fact that now everyone, no matter what side of the energy transition they fall on, is talking about “energy dominance.”

Keep reading...Show less
Sparks

Utilidata Raises $60 Million to Scale the Smart Grid of the Future

The AI-powered startup aims to provide home-level monitoring and data to utilities.

Power lines and a microchip.
Heatmap Illustration/Getty Images

In theory at least, an electrified household could play a key role in helping stabilize the grid of the future, alleviating times of peak electricity demand by providing power back to the grid and giving utilities timely warnings about hardware that may be failing. But devices used to measure and monitor power demand today, such as smart meters, aren’t advanced enough to do this type of orchestrated power management and fault detection at a granular level — thus leaving both financial and grid efficiency savings on the table.

Enter Utilidata, which just raised a $60 million Series C funding round to get its artificial intelligence-powered software module into smart meters and other pieces of grid infrastructure. This module acts as the brains of a device, and can provide utilities with localized insights into things like electricity usage levels, the operations of distributed energy resources such as home solar and batteries, anomalies in voltage data, and hardware faults. By forecasting surges or lulls in electricity demand, Utilidata can optimize power flow, and by predicting when and where faults are likely to occur, it empowers utilities to strategically upgrade their grid infrastructure, or at least come up with contingency plans before things fail.

Keep reading...Show less
Blue