Aug 30, 2022 - News

How the Inflation Reduction Act might help the Texas grid

Illustration: Annelise Capossela/Axios

The Inflation Reduction Act, which aims to reduce U.S. emissions and secure the country's energy future, could also help stabilize the Texas power grid.

Driving the news: President Biden signed the $740 billion bill into law this month, and Republicans are lambasting it.

Why it matters: The Texas electric grid failed during the deadly winter storm in 2021 and flirted with catastrophic failure multiple times during record heat waves this summer.

  • And as the state's population continues to increase, electricity demand will only grow.

How it works: The new law has provisions that encourage more energy-efficient appliances, including electric HVAC and water heaters, which would lower the demand per household.

  • The law will also make it less expensive to install solar panels, which could alleviate demand on Texas power stations.
  • It also provides tax credits for purchasing new or used electric vehicles, which can be used to store energy. Parking lots could hold energy while demand is low and release it when demand increases.

What they're saying: "This has the potential to reshape our electric infrastructure and bring down energy consumption on a local level," Javad Mohammadi, a researcher specializing in power grid modernization at the University of Texas at Austin, tells Axios.

  • "We need to prepare to leverage this opportunity."

The bottom line: Although the bill isn't popular among the Republicans leading Texas, the new policies will likely benefit this state more than most.


Get more local stories in your inbox with Axios Dallas.


Support local journalism by becoming a member.

Learn more

More Dallas stories

No stories could be found


Get a free daily digest of the most important news in your backyard with Axios Dallas.


Support local journalism by becoming a member.

Learn more