Why West Texas Needs More Power
Texas Is Growing Faster Than Its Power Supply
Texas continues to experience unprecedented growth in population, industry, and technology. Meeting tomorrow’s energy needs requires thoughtful investment in modern, reliable infrastructure today.
Power Demand
Texas Is Changing
The Texas economy of 2035 will not look like the Texas economy of years past.
Population continues to climb, and with it residential and commercial demand. Manufacturing has returned to the state at a scale not seen in decades, bringing industrial load with it. Energy production across the Permian Basin has grown, and the operations producing that energy are converting from diesel to electric power. Technology infrastructure, particularly large computing and technology facilities, has arrived with power requirements measured in hundreds of megawatts per site.
Each of these trends is independently significant. Together they represent a structural change in how much electricity Texas needs and how reliably it needs to be delivered.
The driving demands in Texas:
A Fast-Growing Population
Texas continues to add residents faster than nearly every other state. Every new household, business, and public facility adds electricity demand.
Expanding Industry
Industrial development across the state continue to grow, and industrial load is among the most power-intensive on the grid.
A Projected Shortfall
ERCOT projects a supply deficit in the Far West region on the order of 20.9 GW by 2030.
Grid Reliability
Generation that runs on demand is what supports homes, businesses, and critical infrastructure when demand peaks.
What Reliable Power Actually Means
Because electricity must be generated at the moment it is used, a stable grid requires dispatchable power to bridge the gap between continuous demand and intermittent renewable generation.
- Supply and Demand, Continuously Balanced: Electricity is consumed the instant it is generated, so the two must match at all times.
- Dispatchable Generation: Capacity that runs on demand, independent of weather or time of day.
- Peak Demand: The hours when the grid is most stressed are the hours when firm capacity matters most.
- Critical Loads: Hospitals, water systems, communications, and industrial processes cannot tolerate interruption.
- Grid Stability: Firm generation provides the reserve that keeps the system balanced when conditions change.
On-Demand Generation
RUNNING WHEN NEEDED, NOT JUST WHEN CONDITIONS ALLOW
Connecting the Basin
$60 BILLION IN APPROVED ERCOT TRANSMISSION EXPANSION
Why West Texas Matters
By leveraging the Permian Basin’s abundant natural gas to meet rapid regional demand, generation built today serves local load immediately while capitalizing on $60 billion in upcoming transmission expansion, including new 345-kV and 765-kV pathways, is set to convert the region from a constrained power island into a connected, export-capable hub.
- Permian Basin Location: At the center of the most prolific oil and gas producing region in North America.
- Abundant, Low-Cost Natural Gas: Regional supply priced at a discount to national benchmarks.
- Existing Energy Infrastructure: Pipelines, roads, and an experienced industrial workforce already in place.
- Transportation Access: Established highway networks and hard-top county road access.
- Transmission Expansion: More than $60 billion of approved ERCOT investment reshaping regional connectivity.
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Frequently Asked Questions
Why is electricity demand increasing across Texas?
Several trends at once. Population and commercial growth, a return of manufacturing investment to the state, electrification of oilfield operations that previously ran on diesel, and large computing and technology facilities, all which require large amounts of continuous power.
What is the ERCOT grid?
The Electric Reliability Council of Texas operates the electrical grid serving most of the state. Unlike most of the country, the ERCOT grid operates largely independently of the two major national interconnections, which means Texas manages its own supply and demand balance.
What is dispatchable power?
Generation that can be called on when it is needed, rather than producing only when conditions allow. A gas plant is dispatchable. Wind and solar are not, because their output depends on weather. A stable grid needs both, and the dispatchable portion becomes more important as demand grows.
Why is West Texas important?
It has abundant, low-cost natural gas, rapidly growing local demand, and existing industrial infrastructure. Historically it has also been transmission constrained, which is why generation built locally can serve regional load without waiting for new transmission.
How do new power projects support economic growth?
Reliable power is a prerequisite for industrial investment. Manufacturers and industrial producers site facilities where they can count on supply. Beyond that, construction and operation of a facility generate direct employment, local business demand, and tax revenue.
Why does long-term infrastructure investment matter?
Power plants take years to develop and operate for decades. The capacity available in 2035 depends on decisions made now.
A Scalable Solution for Texas
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