Texas electricity reforms recognise rising demand

Significance

After extreme cold caused the failure of much of its electricity system in February 2021, Texas coped with this summer’s high temperatures even though demand for power reached unprecedented levels. New reform proposals to meet higher demand would reward fossil fuel generators and increase costs for consumers, but would not address all the vulnerabilities in the state’s electricity system.

Impacts

• Texas is attempting to keep fossil fuel capacity available to meet demand spikes while also encouraging renewables.
• Current proposed reforms to the Texas electricity market could hamper further renewable energy investment.
• Insufficient investment in the Texas transmission system looks likely to keep congestion costs high.