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Texas boosts investment in energy fund to meet increasing demand

Ashley Fisher by Ashley Fisher
July 22, 2024
in U.S. News
0

San Marcos, Texas was once classified as a small town, but now, growth is apparent in most cities along the I-35 corridor.

Andrea Villalobos, the assistant director of planning and development services for the City of San Marcos, expressed her fondness for the community’s growth and her love for living in the area.

The San Marcos community has been benefiting from Villalobos’ services for over ten years now.

Villalobos shared, “I was actually born in San Marcos and attended Texas State University.”

San Marcos’ continuous growth has been observed by Villalobos, who is currently assisting the city in devising a strategic plan for the next two decades.

According to Villalobos, San Marcos has witnessed significant growth in the housing sector in recent times. He stated that the city has added approximately 8,000 new housing units since 2020.

In 2023, Texas witnessed a staggering influx of nearly 500,000 people, as per the U.S. Census Bureau report. This surge in population has led to a rise in residential and commercial construction, thereby amplifying the energy demands in the state.

According to Dr. Taylor Collins, an energy economics researcher at the University of the Incarnate Word, the intense sunshine and strong winds provide natural advantages that enable us to better meet the rising energy demand.

According to the Electric Reliability Council of Texas (ERCOT), the energy demand in the state is expected to double by 2030. It’s not just the increasing population that’s leading to this surge, as per Collins.

According to Collins, the reason for the increased demand for energy in Texas is largely due to the tech sector and data centers that require constant operation. As a result, the state heavily relies on fossil fuels to ensure a continuous energy supply.

Texas leaders have revealed their intention to increase investment in the power grid by doubling the Texas Energy Fund from $5 billion to $10 billion.

Collins expressed that the recent development is a positive move. He emphasized that when it comes to electricity, it’s better to be cautious and over-invest than to be under-prepared.

ERCOT, which manages the grid for 90% of the state, has allocated funds to assist in the development of new gas power plants. These plants will help meet the growing demand for electricity and provide power to numerous households. According to Collins, it is crucial to utilize all available energy sources to ensure the grid’s reliability.

Collins emphasized the importance of ensuring a resilient and secure energy system by avoiding over-investment in a single source. “We want to have a diverse range of sources,” she stated.

Reference Article

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