How Texas Became the Leader in Wind Energy

The state of Texas has recently become the nation?s leader in wind energy, thanks to the Texas renewable portfolio standard. Through this, Texas has expanded their energy portfolio. Many people have heard of this, some people haven?t. So, what exactly is the Texas renewable portfolio standard?

According to the city?s website, the Texas renewable portfolio ?ensures that the public benefits of renewable energy, such as wind and solar, continue to be recognized as electricity markets become more competitive. It requires companies that sell electricity to retail customers to support renewable energy generation.? By doing this, the Texas renewable portfolio has become one of the most successful ones throughout the United States and has been used as a model by other states.

The first standard of the Texas renewable portfolio was developed in 1999 and required the renewable industry within the state to increase its production rapidly.

The sources that qualified under this standard are:

• Solar
• Wind
• Geothermal
• Hydroelectric
• Tidal energy
• Biomass

The Texas renewable portfolio standard also required electricity providers to produce 2,000 megawatts of renewable energy by 2009, which they accomplished in just six years.

In 2005, a mandate called Senate Bill 20 passed in the Texas Legislature that required these same providers to produce 5,880 megawatts of energy by 2015 (500 megawatts of this will need to come from sources other than wind power) and 10,000 by the year 2025. This standard allowed the state to invest one billion dollars in the wind energy sector and create jobs.

The Texas renewable portfolio standard also has a provision for a renewable energy credit (REC) until 2019. Utility companies can trade or buy these, and they earn one credit for every one megawatt-hour of renewable energy that is produced in the state. The renewable energy credits are given based on meter readings and are issued on a quarterly basis by ERCOT, which is the operator of the electric grid throughout Texas.

Even though wind is a very important part of the renewable energy industry throughout Texas, there is a non-wind requirement in place to help diversify the Texas renewable portfolio a little more. This requirement says that the state must produce 500 megawatts of non-wind renewable industry by 2025. The provision promotes the use and production of solar energy, as well as that of biomass.

Energy transmission has long been a bit of a problem in Texas, but Senate Bill 20 includes a plan for remote areas in Texas to get help to increase their energy transmission. By doing this, more clean energy will move from the remote areas to the bigger cities throughout the state.

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