Texas created a $7.2B fund for gas plants. Hardly any are being built.

AI generated summary

In 2023, Texas established a $7.2 billion Texas Energy Fund (TEF) aimed at stimulating the construction of natural gas power plants to alleviate pressure on the state's power grid. However, despite the fund's financial incentives, the development of new gas-fired plants has stalled due to unfavorable market conditions. Only two projects have been approved, utilizing a mere $321 million of the fund, while several other applications have been withdrawn or denied due to economic uncertainties and supply chain issues.

The challenges facing the natural gas sector have intensified, with rising global energy demand and increased competition from cheaper renewable energy sources. As the Electric Reliability Council of Texas predicts a doubling of energy demand by 2030, the state is leaning towards solar technology and battery storage rather than new gas plants. Legislators have responded by extending the deadline for fund disbursement, acknowledging that unforeseen market influences have complicated the TEF's objectives. The effectiveness of the fund and its policies will be reviewed in upcoming meetings of the Texas Energy Fund Advisory Committee.