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 to access Heatmap’s expert analysis of energy, climate change, and sustainability, including coverage of our regular survey research. Save $57 on an annual subscription, just $156 $99/year.
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
Daily Briefing

Why Saying ‘Climate Crisis’ Falls Flat

A new study suggests skeptical voters don’t respond to such urgent language — while climate-concerned voters find it depressing.

Climate protester.
Heatmap Illustration/Getty Images

This is an edition of Heatmap Daily, a digest from our executive editor that comes out every weekday. Subscribe to this newsletter here.

We have a fascinating new project to share with you today. It gets to the heart of the question: Is there anything that can make Americans care about climate change right now?

Keep reading...Show less
Yellow
Energy

Why ‘Clean Is Cheap, Cheap Is Clean’ Isn’t Breaking Through

New polling by Heatmap and Embold Research shows where one of climate advocates’ favorite arguments for renewables is falling short.

A clean energy salesperson.
Heatmap Illustration/Getty Images

It’s the million-dollar question of clean energy advocacy: How do you persuade climate change skeptics to love renewables?

For years, the clean energy industry has treated the fact that renewables are the cheapest form of new electricity as its messaging trump card. This argument has the advantage of being true. Yes, there is nuance, room for debate, and always the possibility that things could change dramatically in the future. But this summer, the investment bank Lazard reconfirmed what the Lawrence Berkeley National Laboratory and the International Renewable Energy Agency — and plenty of other independent analyses — had found before it: that wind and solar energy are, on the whole, cheaper than fossil fuels.

Keep reading...Show less
Green
AM Briefing

Nuclear’s Alpha Bet

On solar manufacturing, New England gas, and Pacific Northwest geothermal

Finland nuclear.
Heatmap Illustration/Getty Images

Current conditions: The Pacific just can’t catch a break this hurricane season as forecasters warn that a new tropical development called Invest 96E could form in the next two days off Baja California, right behind Hurricane Lowell • In Indonesia, the wildfires blazing through the peatlands and forests of Borneo and Sumatra are now emitting by far the most carbon dioxide of any blazes in the world • A late-summer heat wave is sending temperatures along the California coastline beyond 100 degrees Fahrenheit this week.


THE TOP FIVE

1. Google cements its place as a nuclear salvager

When Alphabet inked its first nuclear deal in 2024, the Google parent company opted to back a next-generation, fluoride salt-cooled reactor startup called Kairos Power. Six months later, the tech behemoth contracted Elementl Power, a nuclear project developer that works with all kinds of reactors, to scout locations for deploying novel atomic technologies. Last October, Google broadened its approach to focus on large-scale reactors that either already existed or were under development. The company eyed financing the construction of the abandoned Westinghouse AP1000s planned for the V.C. Summer plant in South Carolina before the project went under nearly a decade ago. Then Google and NextEra began laying the groundwork to restart the Duane Arnold nuclear station, Iowa’s only such plant, which shut down in 2020. As I told you on Tuesday, that latter deal took a major step forward when the Department of Energy pledged $1.9 billion toward bringing the single 615-megawatt reactor back online.

Keep reading...Show less
Green