New Report Shows Renewable Energy Critical to Keeping Texas Competitive

New Report Shows Renewable Energy Critical to Keeping Texas Competitive

TAB-commissioned study finds restricting renewable projects could raise power bills 10% and leave hundreds of thousands without electricity during peak demand.

AUSTIN, TEXAS – A new analysis by Aurora Energy Research, commissioned by the Texas Association of Business (TAB), finds that limiting renewable energy development in Texas could significantly raise costs for families and businesses while threatening the reliability of our power grid.

The report projects that restricting renewables could drive a 14% increase in wholesale power prices by 2035—equating to a 10% jump in household power bills and up to $6.3 million in annual costs for large industrial users. More alarmingly, such policies could leave as many as 620,000 homes without electricity during extreme heat events.

“As energy demand soars from artificial intelligence, data centers, industrial expansions, and population growth, Texas must continue to embrace an all-of-the-above-and-below energy strategy to remain competitive,” TAB President & CEO Glenn Hamer said. “Our continued leadership depends on reliable, affordable power—and that means keeping every tool in the toolbox to meet growing demand.”

ERCOT has leaned on a diverse mix of energy sources, including wind, solar, and battery storage, to meet Texas’ rising energy needs. The report warns that limiting renewable development could hinder new capacity additions, drive up system costs by more than $5 billion, and increase the risk of outages during peak summer months.

"Renewable energy has helped keep costs down for Texas families and made the Lone Star State a top destination for energy-intensive industries,” said Olivier Beaufils, Head of USA Central at Aurora Energy Research. “Embracing renewables alongside flexible generation sources will help maintain grid stability, lower costs, and sustain Texas’ economic momentum.”

TAB remains committed to policies that protect the grid, support innovation, and ensure that Texas remains the best state for business.

To read the full report, click here.

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TAB is the Texas State Chamber, representing companies of every size and industry. The Association’s purpose is to champion the best business climate in the world, unleashing the power of free enterprise to enhance lives for generations. Follow TAB on Facebook, Twitter, and LinkedIn.