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Renewable Energy’s Impact on the Texas Economy

Texas has long dominated the energy sector by employing a comprehensive "all-of-the-above" strategy that not only expands consumer choices but also fosters healthy competition among a variety of energy providers and encourages more supply. Texas leads in oil and natural gas production and also is the top state for renewables, with the largest planned green hydrogen facility in the United States. This approach optimizes the utilization of America's natural resources, while ensuring a reliable and sustainable supply of energy to power the operation of millions of Texas businesses.

 

As the Texas economy and population continues to grow — we are now the world’s eighth largest — we’re going to need a lot more.

 

Beyond the practical benefits, continuing to diversify our state’s energy portfolio is a crucial step to strengthening our already booming economy. Texas, for the sixth time in the last eight years, proudly clinched the top spot for greatest population growth in 2023. To ensure we can sustain this growth – and the increased energy demands that come with it – Texas must continue to pursue policies that will support current and future renewable energy projects that generate additional power for the Texas grid.

 

That’s why TAB was delighted to partner with the Advanced Power Alliance (APA) and Conservative Texans for Energy Innovation (CTEI) to conduct a study that revealed the significant economic impact renewable energy and energy storage initiatives have had statewide. New data recently released demonstrates that these projects have become generators of wealth, contributing tens of billions of dollars in tax revenue and landowner payments while playing a vital role in powering our state’s electric grid.

 

Statistics from 2023, encompassing both existing and planned utility-scale wind, solar, and energy storage initiatives, project a significant economic boon for the state. The estimated cumulative impact over the lifetime of these projects is staggering – a forecasted $16.7 billion in local tax revenue, marking a robust 16% increase from the previous year. Meanwhile, these projects are expected to pay out $19.3 billion to local landowners – a 15% surge from 2022.

 

Texas consumers and businesses benefit as well, with 2022 estimates showing annual ERCOT market costs decreasing by up to $11 billion annually due to new renewable energy production coming online.

 

This data not only highlights the fiscal benefits but also emphasizes the substantial contribution such projects will have on the power generation capacity of Texas’ grid. As Texas continues to lead the charge in embracing an all-of-the above strategy — including more renewable energy and energy storage — the benefits ripple beyond the economic sphere, promising a future defined by a secure energy grid for Texans, their businesses, and their local communities.

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