Watts Up? CBRE Analyzes Electricity Generation For The Continually Growing Texas-Oklahoma Population

Texas-Oklahoma electricity generation is primarily produced by natural gas, followed by coal, then renewables like wind energy, which amounts to more than three-quarters of all renewable sources…

Texas and Oklahoma have a decades long mutually beneficial relationship with energy as electricity generation historically drives the economic expansion throughout both states.

Texas-Oklahoma electricity generation is primarily produced by natural gas, followed by coal, then renewables like wind energy, which amounts to more than three-quarters of all renewable sources – indeed more than 28% of total generation in Oklahoma “when the wind comes right behind the rain.” Interestingly, the Public Utilities Commission of Oklahoma set 5-year renewable energy goals back in 2010 that were shattered well ahead of schedule.

Meanwhile, Texas over the last 20 years has invested in training for a high- quality workforce to lead the way in renewable energy production. The initiative started in 1999 when the Public Utilities Commission set the renewable energy mandates which were revised in 2005 to outline 10- and 20-year renewable electricity generation goals.

In fact, Texas generates more electricity than any other state by a near two-fold, leaving second place to Florida. Natural gas-fired power plants generate more than half of all electricity while coal-fired plants produce roughly a third. Like Oklahoma, wind-powered generation has become increasingly prominent in Texas, so much so that in 2014 wind-powered electricity generation surpassed nuclear power generation for the first time. According to the American Wind Energy Association, in 2017 wind-power generated more than 14% of Texas’ electricity needs.

Throughout Oklahoma, coal-fired power generation has decreased from almost half of state electricity generation 10 years ago to less than one-fourth of net generation in 2016. That same year, Oklahoma ranked third in electricity generated by wind, just behind Texas and Iowa. Oklahoma also established renewable electricity goals they hoped to meet by 2015, they surpassed their target of 15% renewable capacity in 2013, and in 2016 nearly doubled it.

Texas wind is powerful, but it hasn’t blown away other renewables

One reason that renewable energy is growing so much in Texas could be attributed to state incentives such as the Renewables Property Tax Exemption. It essentially protects renewable energy devices from being included in the appraisal of improved land value. Further growth in the renewable energies sector came about by a collaboration between the Public Utilities Commission and ERCOT to create the Competitive Renewable Energy Zone, which was designed to transfer renewable electricity from energy-producing regions to energy consuming regions. The comparative advantage that’s presented from the CREZ has the potential to enable Texas to provide three times as much available wind power as any other state.

Ranked by itself, Texas would come in sixth globally for total installed wind power capacity. There are over 12,560 wind turbines with a capacity of nearly 23,000 megawatts, powering over 6.2 million homes and earning Texas a blue ribbon for first place in both wind capacity and total number of turbines nationally. There are environmental benefits to wind power as well, for instance in 2017 wind power saved 23.4 billion gallons of water and prevented close to 50 million metric tons of carbon dioxide emissions.

While wind energy reigns supreme, Texas still has abundant potential in terms of solar power, biomass, and geothermal electricity generation.

Due to the state’s large geographic size and high levels of direct solar radiation present in the west, Texas solar power is largely underutilized while suppliers wait for the prices of photovoltaic panels to drop into a more profitable range.

But will prove a renewable power source as consumption increases when the Texas-Oklahoma total population pushes past 59 million by 2050 according to the University of Houston Hobby School of Public Affairs and Oklahoma Department of Commerce, respectively.

While renewable energy has grown rapidly in Texas and Oklahoma, the industry is evolving. As renewable technologies become increasingly competitive in price with natural gas, coal, and nuclear generation they are expected to grow in prominence.

These emerging technologies will soon provide cost effective ways to keep our Lone Star and Sooner State stars at night, big and bright.