Open figure viewer
Significance
After extreme cold caused the failure of much of its electricity system in February 2021, Texas coped with this summer’s high temperatures even though demand for power reached unprecedented levels. New reform proposals to meet higher demand would reward fossil fuel generators and increase costs for consumers, but would not address all the vulnerabilities in the state’s electricity system.
Impacts
Texas is attempting to keep fossil fuel capacity available to meet demand spikes while also encouraging renewables.
Current proposed reforms to the Texas electricity market could hamper further renewable energy investment.
Insufficient investment in the Texas transmission system looks likely to keep congestion costs high.
Keywords:
United States,
NA,
industry,
politics,
electricity,
government,
infrastructure,
nuclear energy,
regional,
regulation,
renewable energy,
utilities,
Fossil fuels,
Electric
© Oxford Analytica 2022. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2022
You do not currently have access to this content.
