But continue the subsidies and incentives for petroleum production?
In reality the attempts to kneecap either has been mostly unsuccessful.
The Lone Star State is demonstrating an affordable and reliable path to achieving American energy resilience that prioritizes practicality over ideology, writes Amperon CEO Sean Kelly.
But while the federal government continues picking winners and losers among energy technologies, Texas demonstrates an affordable and reliable path to achieving American energy resilience that repeatedly prioritizes practicality over ideology.
With no fuel costs, solar operates at a low marginal cost, pushing market prices down. Thanks to ERCOT’s competitive market structure, wholesale cost savings make their way not just to investors but also to customers.
The dynamics are the same for wind power, but the
development of new wind generation hasn’t moved as quickly as solar has in recent years. Combined, though,
wind and solar can now supply up to nearly half of ERCOT’s total electricity demand, which makes the market less reactive to increases in the cost of natural gas. The rapid installation of battery storage is also expanding the impact of low-cost renewables by storing and discharging excess generation during other times of high demand.