Wind and solar projects are hot in Texas — and short interconnection times, low development costs and rising regional power needs are fueling the demand.
Why it matters: Companies are searching for the quickest way to get clean electricity to power data centers for AI, and Texas' relatively quick hookups are increasingly attractive.
State of play: Texas installed the second most solar panels of any state in the first quarter of 2024, per Wood Mackenzie researchers.
Growing power needs in Texas, long interconnection delays in other markets, and the explosive growth of AI and data centers are driving the demand for clean energy.
Investors and developers are focused on clean energy projects.
Most roads appear to be leading to Texas for the next two years when it comes to new wind and solar projects, says Sam Scroggins, managing director of Lazard's Global Power, Energy & Infrastructure Group.
Yes, but: The Texasgrid can get congested during peak times and has faced rolling blackouts.
Solar project developers need to be able to manage their risks for when clean energy is curtailed during peak times.
What's next: All eyes will be on how the state's grid performs this summer with record-shattering heat expected.
ERCOT has said it could face rolling blackouts in August.
