Texas-California Clean Power Race Heats Up | Reading and Podcast Picks - Mar. 23, 2026
News ClipThe Texas Energy and Power Newsletter·TX·3/23/2026
Texas is experiencing rapid growth in renewable energy, leading the nation in utility-scale solar installations and projected new power capacity. However, this growth, coupled with increasing population and the influx of data centers, is straining the grid and causing electricity bills to rise. State lawmakers and regulatory bodies are deliberating policies to manage the energy demand and grid integration for large users like data centers.
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Gov: Public Utility Commission of Texas, ERCOT, state lawmakers
Texas and California are leading the charge in clean power expansion, with Texas setting new records for solar generation on the ERCOT grid and surpassing California in utility-scale solar. This growth is driven by the economics of solar and energy storage, particularly in Texas's competitive energy market.
Despite the affordability of renewables, Texas utility customers are facing soaring electricity bills due to increasing infrastructure spending, mandated upgrades following the 2021 winter storm Uri, population growth, and the rising demand from data centers. The Texas Energy Poverty Research Institute projects a significant increase in residential electricity prices within the ERCOT region by 2030.
The Dallas Morning News editorial board warns that Texas lawmakers must remain open to renewable energy to keep up with increasing energy demands from population growth, crypto mines, and massive data centers powering AI. They caution against adding barriers to energy development. Meanwhile, the Public Utility Commission of Texas and ERCOT are engaged in quiet deliberations regarding the process for data centers and other large energy users to connect to the state's grid.