CEO of Hunt Energy Network is optimistic about Texas’ power future. Outsiders are surprised when I assert that Texas is setting the global path for the clean...
Today, 63% of Texans heat their homes with electricity; most of the rest use natural gas. Unfortunately, we burn twice as much gas to generate power for electric home heating as we use to heat our homes with natural gas directly. Paying power and gas customers to ratchet back winter demand, plus stronger building code provisions on insulation and appliances could help de-stress the dual-use natural gas system.
We really need a more modern way to rein in our demand for power. ERCOT pays some industrial customers to curtail use if needed. It’s time to open up the party. Most of us have the same flat retail rate year-round, so we don’t have any incentive to conserve when the wholesale price spikes. By paying me if I do conserve, my retailer gets my attention, and ERCOT can count on me to deliver my usage cut. So I can help the system just like a power plant.
Outsiders are surprised when I assert that Texas is setting the global path for the clean energy transition. That shift is happening here faster than anywhere else. And it’s being driven by markets and innovators, not by monopolies and governments. It helps that the good Lord has blessed Texas with abundant resources both above and below the ground. And Texans are the best in the world at converting those resources into useful energy. Wind and solar are now cheaper than gas and coal, and we will get even more power from them. Expect robust expansion of our new tools: power storage and active demand-side participation. Further out, we may see investments in nuclear power again.
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