Texas renewables restrictions could increase power prices by 14% in 2035: Aurora

AI generated summary

A recent report by Aurora Energy Research indicates that restrictions on wind and solar development in Texas could lead to a 14% increase in wholesale power prices by 2035, alongside potential capacity shortfalls resulting in significant load shedding during extreme weather events. The analysis suggests that a typical industrial customer could face an additional $6.3 million in annual power costs, while households might see their electricity bills rise by approximately $225 per year. The report emphasizes the critical role of renewables in managing load growth and maintaining price stability, countering the narrative that they compromise grid reliability.

The Texas legislature is currently considering several bills that could hinder renewable energy development in favor of natural gas and other firm generation resources. Recent legislative actions have included imposing new fees on wind and solar projects and requiring new renewable capacity to be matched with dispatchable resources. Aurora's findings highlight that limiting renewable energy deployment could not only escalate power prices but also diminish reliability, with potential economic impacts reaching up to $450 million during extreme weather scenarios. The report underscores the challenges posed by supply constraints in gas turbine manufacturing, which could further complicate the state's energy landscape.