Texas: A Leader in Oil, Gas, and Renewable Energy Transformations
Texas has long been the dominant force in America’s oil and gas sector. Its vast reserves and state-of-the-art technologies make it the top producer of fossil fuels in the United States. However, in recent years, Texas has not only maintained its grip on the traditional energy markets, but has also emerged as a leader in the renewable energy space. The state’s increasing renewable energy and battery storage capacities are quickly making it a powerhouse in the clean energy transition.
While much of the world focuses on Texas's oil fields, the state has quietly built an impressive renewable energy infrastructure, becoming the largest producer of both wind and solar power in the United States. The role that Texas plays in renewable energy has often been overshadowed by the state's fossil fuel legacy, but this new focus on green energy is undeniable.
As of the end of 2024, Texas had an operational renewable energy capacity of:
42 gigawatts (GW) of wind power capacity
22 GW of solar power capacity
6.5 GW of utility-scale battery storage capacity
These figures are based on data from the Cleanview platform, which reports on energy data and statistics compiled from the U.S. Energy Information Administration (EIA). Texas outstrips other states in terms of total renewable energy capacity, including battery storage, positioning it as the undisputed leader in America’s clean energy sector.
The Rise of Wind Power in Texas
Wind energy is one of the cornerstones of Texas’s renewable energy transformation. Thanks to its vast flat landscapes and the geographic location of the state, Texas enjoys some of the most productive wind energy resources in the world. With over 40% of all U.S. wind power coming from Texas, the state leads in wind energy installations by a considerable margin.
At the end of 2024, Texas’s wind power capacity stood at an impressive 42 GW, the largest in the United States. This figure surpasses the combined total of the next two leading states, Iowa and Oklahoma, by more than 10 GW. The expansion of wind power capacity in Texas is no accident—it’s a result of years of infrastructure investment, policies that support renewable energy growth, and abundant natural resources.
This surge in wind power can also be attributed to Texas’s vast land area and its commitment to adopting advanced wind turbine technology. Wind farms can be found across the state, from the Great Plains in the north to the Gulf Coast in the south. The state's early adoption of the Competitive Renewable Energy Zones (CREZ) transmission initiative, which allowed the connection of remote wind farms to major cities, has also been a key driver behind the state’s wind power capacity.
Solar Power in Texas
While Texas is renowned for its wind power, it’s also making impressive strides in solar energy. As of the end of 2024, Texas's solar capacity stood at 22 GW, positioning it as the leading state for solar energy production in the U.S. California, which has long been the leader in solar energy, saw its capacity dip to 21.5 GW, making Texas the new top producer of solar power in the country.
The rise of solar energy in Texas is a result of both the state's high levels of sunshine and its market-driven approach to energy. Texas is the sunniest state in the continental U.S., and its vast stretches of unutilized land make it an ideal location for solar installations. Moreover, the state's deregulated energy market has created favorable conditions for the development of solar energy projects.
Utility-scale solar projects have been expanding rapidly in Texas, especially in the west and south of the state. In particular, large-scale solar farms in areas such as Pecos and the Texas Panhandle have helped the state realize its full solar potential. These solar projects are playing a crucial role in ensuring that Texas continues to meet its growing energy demand, while also lowering emissions and providing new economic opportunities in rural areas.
Battery Storage
Texas’s renewable energy transformation wouldn't be complete without the integration of cutting-edge battery storage technology. As intermittent energy sources like wind and solar become more prevalent, the need for energy storage to smooth out supply and demand fluctuations has grown. Battery storage allows surplus energy generated during sunny or windy days to be stored and used when production dips due to weather patterns or high demand.
As of the end of 2024, Texas has made significant advancements in this area, with 6.5 GW of utility-scale battery storage capacity—more than any other state. This surge in battery storage capacity has been nothing short of remarkable. Between 2020 and 2024, the state saw an astounding 4,100% increase in its utility-scale battery storage capacity. In September 2020, the state’s total battery storage capacity was only 135 megawatts (MW), and by 2024, it had reached over 5.7 GW, marking a monumental leap in the state’s energy infrastructure.
The Texas energy grid's ability to store and deploy energy during extreme weather events has become increasingly important. During heatwaves, cold snaps, and other crises, Texas's battery storage systems have played a crucial role in ensuring the reliability of the state’s energy supply. These batteries have helped reduce energy costs, avoid energy conservation appeals, and provided greater stability during power shortages.
Noah Roberts, Vice President of Energy Storage for the American Clean Power Association (ACP), emphasized the significance of energy storage: "Energy storage is doing the job it was designed to do, delivering affordable power for Texas during the most critical moments, whether historic heatwaves or winter storms."
The Economic Impact of Texas’s Renewable Energy Boom
The expansion of renewable energy and battery storage in Texas has had a profound economic impact. The state has become a hub for the green energy sector, attracting billions of dollars in investments and creating tens of thousands of jobs. Texas is now home to hundreds of renewable energy companies, ranging from wind turbine manufacturers to solar panel installers and battery storage developers.
In addition to the creation of direct jobs in the renewable energy sector, the economic benefits of Texas’s clean energy boom also extend to local communities. Rural areas, where many of Texas’s wind farms and solar projects are located, have benefited from an influx of investment, increased tax revenues, and new business opportunities. Wind and solar farms often provide tax revenue to local governments and offer landowners the opportunity to lease their land to energy companies.
The transition to renewable energy has also contributed to Texas's broader efforts to diversify its economy. By leading the nation in both oil and gas and renewable energy production, Texas is positioning itself as a leader in both traditional and green energy markets, ensuring that it remains economically resilient in an increasingly carbon-conscious world.
A Bright Future Ahead
Looking ahead, the future of renewable energy and battery storage in Texas is extremely promising. The state has already committed to continuing its investments in clean energy technologies and infrastructure. Texas has set its sights on expanding its renewable energy capacity even further, with ongoing projects in both wind and solar energy.
With plans to build out even more wind farms in the coming years and ambition us projects to expand solar energy capacity, Texas is well on its way to becoming a global leader in clean energy. The state is also focusing on increasing its energy storage capacity to ensure that renewable energy can be efficiently stored and distributed, making the grid even more resilient and flexible.
Texas is uniquely positioned as the leader in both fossil fuels and renewable energy production. The state’s vast wind and solar retsources, combined with its rapid expansion of battery storage capacity, have positioned it as a global energy powerhouse. As of 2024, Texas leads the U.S. in renewable energy and battery storage capacity, surpassing even states like California, Florida, Arizona, and Colorado in these critical sectors. The state's commitment to both conventional and clean energy is a testament to its ability to innovate and adapt, ensuring that it remains a dominant player in the evolving energy landscape. As Texas continues to push forward with its clean energy revolution, its future as a global energy leader looks brighter than ever.
Are you a landowner or an industrial roof owner? Join Telkes in leading the green energy revolution! Let us help you turn your property into a sustainable energy solution that benefits the planet. Visit Telkes today and discover how you can contribute to a cleaner future while maximizing your property's potential. Together, we can power a brighter, greener world!
