Texas Grid's 17 TWh Demand Surge in 2024 Covered by Clean Energy

AUSTIN, Texas – Texas' rapidly expanding electricity demand in 2024 was entirely met by renewable energy sources and battery storage, signaling a significant shift in the state's power landscape. Through July of the past year, the Electric Reliability Council of Texas (ERCOT) observed a substantial increase in consumption, rising by approximately 17 terawatt-hours (TWh) compared to the previous year. Energy analyst Doug Lewin highlighted this trend in a recent social media post, stating, "nearly all of that incremental demand was met by clean generation."

The growth was predominantly driven by solar power, which saw a nearly 47% increase, contributing 12 TWh of additional electricity. Wind energy also played a role, adding 3 TWh to the grid, while energy storage capacity tripled, contributing another 3 TWh. According to the 2024 State of the Market Report by Potomac Economics, ERCOT saw approximately 14 GW of new capacity enter commercial operation in 2024, including 7.5 GW of solar and 5.0 GW of energy storage.

While natural gas continues to be a major component of ERCOT's overall energy mix, providing 44.2% of all output in 2024, the incremental demand growth underscores the rising prominence of clean energy. This surge in renewable and storage capacity has also positively impacted energy affordability. As Lewin noted, "Prices are rising due to higher fuel and transmission & distribution costs, but renewables and storage are holding them down compared to where they would be otherwise." The State of the Market Report further confirmed that average real-time prices fell by 52% in 2024, despite only a 14% decline in natural gas prices, partly due to the influx of new supply.

Texas has solidified its position as a national leader in renewable energy, driven by its unique competitive market structure and developer-friendly environment. Experts like Ric O’Connell, executive director of GridLab, emphasize that clean energy is thriving in Texas because it is economically viable. This robust growth in renewables and storage is not only meeting the state's increasing energy needs but also strengthening grid reliability and building a more resilient foundation for the future.