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TAB-commissioned report finds demand response and energy efficiency can reduce outages, lower bills, and support grid reliability

AUSTIN, TEXAS – Today, the Texas Association of Business (TAB) released a new report by Aurora Energy Research and the South-central Partnership for Energy Efficiency as a Resource (SPEER), highlighting how expanded use of energy efficiency and demand response programs could provide a cost-effective way to meet Texas’ surging electricity demand while strengthening the reliability of the ERCOT grid.

With electricity use rising rapidly due to population growth, industrial expansion, and a wave of new data center and bitcoin mining operations, the report projects that demand-side tools could deliver significant system benefits. For example, widespread adoption of heat pumps could reduce residential power bills by as much as 45%—or $424 per year—while demand response programs could save large industrial users up to $1.9 million annually.

“Texas is growing fast—and so is our power demand,” said Glenn Hamer, President & CEO of the Texas Association of Business. “This report makes clear that we need to embrace every lever we have to deliver affordable, reliable electricity to homes and businesses. Demand-side programs are a smart, business-friendly solution that can help us get there.”

The analysis found that in a winter storm scenario, increased participation in demand response programs—just 20% of residential and commercial users and 10% of industrial data centers—could reduce load shed by 70%, preventing $1.7 billion in outage-related costs. With even greater participation, grid failures could be eliminated entirely during peak stress periods.

The study also emphasized the growing urgency of these strategies as supply chain constraints and long lead times for thermal generation limit the pace of new capacity additions.

“Texas’s economic momentum is driving a sharp rise in electricity demand, creating both a challenge and an opportunity.” said Olivier Beaufils, Head of USA Central at Aurora Energy Research. “Energy efficiency and demand response programs provide a critical additional lever for Texas to keep pace with the demand while cutting costs for consumers and strengthening the reliability of the grid.”

TAB continues to advocate for an all-of-the-above-and-below energy strategy—supporting innovation across every technology to keep Texas the best state for business.

To read the full report, click here.

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