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Released June 10, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Texas is well positioned for solar-energy development due to its abundant sunshine and competitive retail energy market. However, the state's current growth of renewable energy is outpacing grid capacity, causing utilities to curtail production. Industrial Info is tracking $2.5 billion in high- and medium-probability (70-99% chance of kicking off as planned) Power Industry projects in Texas that are planned to kick off in the third quarter, which leads all states in the U.S., including $1.8 billion for solar development.
Click on the image at right for a graph showing active high- and-medium-probability third-quarter power project kickoffs in Texas by fuel type.
In 2020, Texas was the country's second-largest producer of solar power (after California), according to the U.S. Energy Information Administration (EIA). Capacity at the state's large- and-small-scale solar facilities nearly doubled between 2019 and 2020, from 3,118 to 6,023 megawatts (MW). That trend is expected to continue as Texas is projected to add 20,327.83 MW of solar capacity over the next five years, according to the Solar Energy Industries Association (SEIA).
Texas' burgeoning solar development is due to a variety of factors, but mainly the state's retail energy market. Certainly not the only state with a deregulated market, the Lone Star State's retail energy providers are able to sign power-purchase agreements (PPA) directly with developers, while customers must choose a provider for service, which incentivizes renewable-energy development; in states with a regulated market, providers instead purchase energy from the wholesale grid operators, of which capacity is heavily regulated.
Power developers and investors are proponents of more renewable energy in Texas. Forecast data supports that sentiment: the state is on pace to have as much green-power development in coming years as the next three states combined, according to the American Clean Power Association (ACP).
But there are obstacles to adoption: renewable energy sources naturally are intermittent forms of electricity, and although the state is seeing its fair share of solar development, Texas ultimately does not yet feature the battery storage capacity needed for renewable energy to emerge as a base load energy source.
Solar development is on the rise but the state's existing transmission lines cannot handle the rapid growth. The Electric Reliability Council of Texas (ERCOT), which manages most of Texas's power grid, is forced to limit the wind and solar power from West Texas that is sold into the grid -- due to a lack of available capacity -- even when demand is at its highest. As a result, the organization recently dropped its forecast for solar power coming on to the grid by next year, from more than 16,000 MW to about 14,000 MW.
Another issue facing solar production is it takes 18 to 24 months to develop solar farms, but up to six years to complete transmission upgrades, according to ERCOT. And as new transmission lines are built, producers quickly build out projects and use up available capacity, leading to more transmission constraints.
"We have to recognize that if we want to get to higher levels of renewables, we're going to have to think about various technical solutions to increase the ability of the grid to receive renewables," said Ross Baldick, an emeritus professor of electrical and computer engineering at the University of Texas at Austin, according to the Houston Chronicle.
Regardless, one-third of the utility-scale solar projects that will be built in the U.S. in 2021 and 2022 will be constructed in Texas, according to the EIA.
Duke Energy Sustainable Solutions, a nonregulated commercial brand of Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina), announced on June 7 it started construction of the $412.5 million, 250-MW Pisgah Ridge Solar Farm in Richland, Texas. Completion is expected at the end of 2022. Once in operation, it will be the largest utility-scale solar facility in Duke Energy Sustainable Solutions' fleet. The company currently operates 500 MW of solar power in Texas.
Charles River Laboratories International Incorporated, (NYSE:CRL) (Wilmington, Massachusetts), a leading life science company for research tools and drug discovery and development, has signed a virtual power purchase agreement (VPPA) with Duke Energy Sustainable Solutions for 102 MW over 15 years. Two other corporations have signed separate 15-year agreements for the remaining generation. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can see the detailed project report.
In West Texas, Cypress Creek Renewables LLC (Santa Monica, California), one of the largest utility-scale solar companies in the U.S., is preparing to start construction in September on the $210 million Emerald Grove Solar Plant in Crane, Texas, which would generate 108 MW. Completion is expected in June 2022. Subscribers can learn more from Industrial Info's detailed project report.
Acciona Energy North America, a subsidiary of Nordex SE (Hamburg, Germany), anticipates beginning construction of its $330 million Fort Bend Solar Farm in Orchard, outside of Houston, in the third quarter. The facility would generate 240 MW from 700,000 thin-film photovoltaic (PV) panels provided by First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona). Completion is expected in September 2022. Subscribers can learn more from Industrial Info's detailed project report.
Renewable Energy System Limited (RES Americas) (Broomfield, Colorado), along with Jones County Solar, LLC, expects to begin construction in August on a pair of $170 million solar farms as part of the Jones County Solar Project in Anson, outside of Amarillo. The facilities would both generate 200 MW from 654,976 PV modules once completed at the end of 2022. Subscribers can read Industrial Info's detailed reports for the grassroot and Plant II projects.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph showing active high- and-medium-probability third-quarter power project kickoffs in Texas by fuel type.In 2020, Texas was the country's second-largest producer of solar power (after California), according to the U.S. Energy Information Administration (EIA). Capacity at the state's large- and-small-scale solar facilities nearly doubled between 2019 and 2020, from 3,118 to 6,023 megawatts (MW). That trend is expected to continue as Texas is projected to add 20,327.83 MW of solar capacity over the next five years, according to the Solar Energy Industries Association (SEIA).
Texas' burgeoning solar development is due to a variety of factors, but mainly the state's retail energy market. Certainly not the only state with a deregulated market, the Lone Star State's retail energy providers are able to sign power-purchase agreements (PPA) directly with developers, while customers must choose a provider for service, which incentivizes renewable-energy development; in states with a regulated market, providers instead purchase energy from the wholesale grid operators, of which capacity is heavily regulated.
Power developers and investors are proponents of more renewable energy in Texas. Forecast data supports that sentiment: the state is on pace to have as much green-power development in coming years as the next three states combined, according to the American Clean Power Association (ACP).
But there are obstacles to adoption: renewable energy sources naturally are intermittent forms of electricity, and although the state is seeing its fair share of solar development, Texas ultimately does not yet feature the battery storage capacity needed for renewable energy to emerge as a base load energy source.
Solar development is on the rise but the state's existing transmission lines cannot handle the rapid growth. The Electric Reliability Council of Texas (ERCOT), which manages most of Texas's power grid, is forced to limit the wind and solar power from West Texas that is sold into the grid -- due to a lack of available capacity -- even when demand is at its highest. As a result, the organization recently dropped its forecast for solar power coming on to the grid by next year, from more than 16,000 MW to about 14,000 MW.
Another issue facing solar production is it takes 18 to 24 months to develop solar farms, but up to six years to complete transmission upgrades, according to ERCOT. And as new transmission lines are built, producers quickly build out projects and use up available capacity, leading to more transmission constraints.
"We have to recognize that if we want to get to higher levels of renewables, we're going to have to think about various technical solutions to increase the ability of the grid to receive renewables," said Ross Baldick, an emeritus professor of electrical and computer engineering at the University of Texas at Austin, according to the Houston Chronicle.
Regardless, one-third of the utility-scale solar projects that will be built in the U.S. in 2021 and 2022 will be constructed in Texas, according to the EIA.
Duke Energy Sustainable Solutions, a nonregulated commercial brand of Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina), announced on June 7 it started construction of the $412.5 million, 250-MW Pisgah Ridge Solar Farm in Richland, Texas. Completion is expected at the end of 2022. Once in operation, it will be the largest utility-scale solar facility in Duke Energy Sustainable Solutions' fleet. The company currently operates 500 MW of solar power in Texas.
Charles River Laboratories International Incorporated, (NYSE:CRL) (Wilmington, Massachusetts), a leading life science company for research tools and drug discovery and development, has signed a virtual power purchase agreement (VPPA) with Duke Energy Sustainable Solutions for 102 MW over 15 years. Two other corporations have signed separate 15-year agreements for the remaining generation. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can see the detailed project report.
In West Texas, Cypress Creek Renewables LLC (Santa Monica, California), one of the largest utility-scale solar companies in the U.S., is preparing to start construction in September on the $210 million Emerald Grove Solar Plant in Crane, Texas, which would generate 108 MW. Completion is expected in June 2022. Subscribers can learn more from Industrial Info's detailed project report.
Acciona Energy North America, a subsidiary of Nordex SE (Hamburg, Germany), anticipates beginning construction of its $330 million Fort Bend Solar Farm in Orchard, outside of Houston, in the third quarter. The facility would generate 240 MW from 700,000 thin-film photovoltaic (PV) panels provided by First Solar Incorporated (NASDAQ:FSLR) (Tempe, Arizona). Completion is expected in September 2022. Subscribers can learn more from Industrial Info's detailed project report.
Renewable Energy System Limited (RES Americas) (Broomfield, Colorado), along with Jones County Solar, LLC, expects to begin construction in August on a pair of $170 million solar farms as part of the Jones County Solar Project in Anson, outside of Amarillo. The facilities would both generate 200 MW from 654,976 PV modules once completed at the end of 2022. Subscribers can read Industrial Info's detailed reports for the grassroot and Plant II projects.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
