Everything is Bigger in Texas Even Growth of Power Generation

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Researched by Industrial Info Resources (Sugar Land, Texas). Legend has it that everything is bigger in Texas. It sure seems as though the electric power industry is following this motto when it comes to adding new generation in the state. Currently, there is roughly 92,400 megawatts of operational capacity in Texas. Plans are in the works to build additional capacity to an increase of 26.8%, or over 24,800 megawatts. If all of this new generation is built, it will bring the state’s total capacity to over 107,000 megawatts.

Click on the image at right to view a breakdown of planned Texas power generation unit construction

There are 28 solid (primarily coal and or petroleum coke) fuel-based units that will account for 15.8% or, 14,600 megawatts of the new capacity. The new megawatts will come from integrated gasification combined cycle (IGCC), circulating fluidized bed (CFB) and pulverized fuel units. TXU Corporation (NYSE:TXU) (Dallas, Texas) has announced plans for the construction of eleven of these units. The state of Texas, along with many others, is actively pursuing proposals to attract The Department of Energy’s FutureGen Project, which is proposed as an IGCC project. Indications are that if Texas is not selected as the home for FutureGen, there may be interest in pursing a similar project sponsored by the state and private industry.

In addition to solid fuel facilities, there are also 42 units in development that are planned as peaking units and expected to utilize landfill gas, natural gas or oil-fired combustion turbines and internal combustion generators. These planned units currently account for 5.1% of capacity under development. Assuming that all the units move forward to completion they will be capable of supplying 4,700 megawatts of new capacity.

Texas is also one of the leading areas in the development of renewable energy projects. Developers with plans to utilize wind or solar include seventeen additional wind projects to produce over 2,400 megawatts and a solar tower that will produce 200 megawatts in development for a total growth of 2.8%, or 2,600 megawatts.

For more information on future business trends and project spending in the Power Industry, check out Industrialinfo.com's recently released 2006 Power Industry Forecast.

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