Natural Gas, Renewables Find Common Ground in Texas

The two energy sources should complement, not compete, with each other in the Lone Star State.

June 14, 2013

DALLAS – Texas, with its own power grid, is testing the relationship between natural gas and renewable energy, the Pew Charitable Trust reports. A new report by The Brattle Group commissioned by the Texas Clean Energy Coalition found that renewable energy and natural gas could coexist together on the Lone Star State’s power grid. 

Texas has more wind and natural gas resources than any other state, along with soaring energy consumption from a growing population. Analysis found that the low cost of natural gas would not take over the current renewable energy volume in the sate. What is likely to happen is that both fuel sources will consume coal’s market share. 

A report by the Electric Reliability Council of Texas, which runs the state’s power grid, said “natural gas generation and renewable resources are likely to be competitive across a broad range of potential future market outcomes.” The council also pointed out that the grid would have more than 20,000 megawatts of capacity from new natural gas generation between now and 2033, plus an additional 10,000 megawatts from solar energy and close to 17,000 from wind-generated energy. 

Currently, federal assistance is key to renewable energy’s competitiveness. For example, the confusion over the continuation of the wind production tax credit has halted the rapid expansion of the wind industry.

Overall, renewable energy and natural gas are a natural fit to work together. “Low-priced natural gas and clean renewable resources are complementary, not competing, resources to displace other fuels over the long term,” said Kip Averitt, chairman of the Texas Clean Energy Coalition.

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