Renewables, Fossil Fuels Unite on Threat to Texas ‘Energy Miracle’

Texas is an energy powerhouse, leading the U.S. in not only oil production but also wind-powered generation and utility-scale solar.

However, proposed legislation making its way through the Texas Legislature is threatening that, according to panelists speaking at the recently held RE+ Texas conference in Houston.

“There’s this idea that if you are a Republican and you run in the Republican primary here in Texas, you got to be against certain things and one of them is renewable energy,” said Judd Messer, vice president of Advanced Power Alliance, an industry trade group. “I think we all in this room know that that’s not only a failed political philosophy, but it’s also not how an effective grid operates either. All these folks should have an interest in making sure the power stays on in Texas and rates are kept as low as possible.”

Some industry advocacy groups, including Texas Oil and Gas Association (TXOGA), share similar concerns in keeping the lights on. 

Flourishing in Texas’ competitive energy landscape, renewable energy companies have been stepping up to help meet rising energy demand, including that of Big Tech companies looking to shrink their carbon footprints while powering data centers. Making up the bulk of new capacity additions, renewables such as solar and storage hit generation records during some of the hottest days last summer.

However, fears of crippling grid reliability and price hikes remain. President Donald Trump’s energy dominance agenda, which is pro-fossil fuels and anti-renewables for the most part, may also be an influential factor—despite the all-of-the-above strategy backed by many energy leaders.

“This year is unique because we just came off the presidential election and really for the first time our industry was in the crosshairs at a national level and the rhetoric was just blown sky high,” said Hesston Klenk, director of government relations for renewable energy developer AES. “I’ve often said that the IRA [Inflation Reduction Act] was the best and worst thing that could have happened to our industry because it put us right there in the crosshairs.”

Tammy Embrey, senior manager of Texas government affairs for Invenergy, said the industry and energy trade associations went into the legislative session prepared to address siting and permitting issues and proactively address known challenges such as recycling.

“We were coming into session knowing that we had done our homework. We also didn’t think we were walking into being the tip of the spear,” she said.

Michael Jewell, managing attorney for Jewell & Associates, pointed out concerns about the large loads that the Electric Reliability Council of Texas (ERCOT) projects will come onto the grid.

“How are we going to serve that … when you’ve got these attacks that are not only against new renewables but getting rid of existing renewables?” Jewell said. “It’s just been somewhat insane from that perspective. If you want the Texas miracle to continue, then by gosh, you’ve got to have clean energy as part of the mix.”

‘Trifecta of bad bills’

Several industry groups have come together in opposition to what Embrey called the “trifecta of bad bills.”

SB 715 requires electric generation facilities, including renewable energy facilities, in the ERCOT region to secure backup power. That could come from either battery energy storage systems or natural gas.

While supporters argue the bill ensures grid stability and strengthens accountability, opponents take issue with it being retroactive and its potential to raise energy prices. Existing backup mechanisms are already in place, and requiring a backup power for every generator would be expensive and may discourage further investment, they said.

Status: Passed in Senate; Pending in the House State Affairs Committee

SB 388 requires half of ERCOT’s generating capacity installed after Jan. 1, 2026, to be sourced for dispatchable generation other than battery energy storage and calls for the establishment of a dispatchable generation credits trading program. The bill specifically excludes battery energy storage while encouraging development of new natural gas energy projects. The problem is a shortage of natural gas turbines.

Other forms of dispatchable generation, excluding batteries, include coal, nuclear and geothermal.

Status: Passed in Senate; Referred to House State Affairs Committee

SB 819 prohibits the interconnection of a renewable energy generation facility with a capacity of 10 megawatts or more to a transmission facility unless an application for determination of public interest is filed with the Public Utility Commission of Texas. Electric cooperatives and municipal-owned utilities would be subject to the rule, which also includes an environmental impact analysis for the renewable energy generation facility. Opponents say the bill could slow renewable energy development.

Status: Passed in Senate; Pending in the House State Affairs Committee

“The three most significant threats are very much still alive,” Messer said.

Efforts to defeat some of the legislation has brought together some renewable energy and oil companies. These include SB715’s companion bill HB3356, based on media reports.

“If you would have said at the beginning of session that we would hit a point where TXOGA, TAM-Texas Association of Manufacturers, Texas Chemical Council, Texas Association of Business and Texas Public Power were all joining in with us to oppose a bill, I would have been blown over,” Embrey said. “But that’s where we are and to pull that type of coalition together has really been, I think, helpful as we continue to fight.”

Electricity demand is expected to reach 248 gigawatts (GW) by 2031 as data centers drive new growth, according to ERCOT. Its adjusted load forecast, which uses historical trends to adjust the Transmission Service Provider-provided load forecast, shows demand rising to 145 GW by 2031.

“I think it’s worth saying that I don’t think any of us up here have any partisan slant,” Messer said. “It’s just that we’re dealing with this hypocrisy and somebody needs to call it out.”

Addressing concerns

The industry is supporting some legislation as it works to combat known challenges, including legislation covering fire safety for batteries and a battery decommissioning bill, Jewell said.

Others such as HB 3228 and HB 3229 involve end-of-life projects, particularly recycling of renewable energy components. Sweetwater, Texas, has become home to graveyards of unwanted wind turbine blades.

Recycling is addressed both on the developer and recycler side, Embrey said. On the developer side, legislation incorporates a recycling requirement into landowner agreements and calculates that into decommissioning costs, Embrey said. Recyclers, she said, have to prove their own financial assurance and show they have the ability to carry out contracts they’ve been hired to do.

Concerns have also risen on deceptive practices in the residential market for rooftop solar, Jewell said.

“A lot of folks … have worked on legislation for beefing up the customer protection language, beefing up customer education.”

Panelists also noted the importance of thinking politically; addressing misinformation, including on social media; telling their stories; communicating with community stakeholders early and often; and encouraging supporters of projects to speak up, including to neighbors and legislators.

“The more we can do to really show that we’re an industry, and we’re not a niche anymore … will help avoid some of the issues we’re dealing with today as we move forward,” Klenk said.

The emphasis needs to shift from technology to power generation.

“We need to talk about how the grid works as a complete system and how all of the technologies work together,” Embrey said.

ERCOT is powered by energy sources that include natural gas, wind, solar, coal, nuclear and hydropower, along with energy storage.

Without renewables and energy storage, she said, “you don’t have the power on the grid that allows the thermals to go down in the spring for summer maintenance and then the fall for winter maintenance, but nobody wants to acknowledge that.”

The Texas legislative session ends June 2.