A Legislative Tour of West Texas’ Innovative Energy Projects
On October 24-25, 2024, PowerHouse Texas hosted a group of 30 people, including bipartisan legislators, legislative staff, our team and partners, on a fun-filled energy journey through San Angelo, showcasing some of the state's most innovative energy projects. From major utility infrastructure to groundbreaking renewable initiatives, each stop highlighted the future of energy in Texas and the crucial role of sustainable solutions in addressing the state’s growing energy demands. Watch the full recap video, here!
The tour kicked off with the first site visit to AEP Texas in San Angelo. As one of the largest electric utilities in the U.S., AEP Texas manages the infrastructure that delivers power across 100,000 square miles. During an in-depth tour of the facility, attendees saw firsthand how AEP Texas ensures reliable power for over a million customers. Legislators and staff were also able to climb a transmission pole and go up a bucket truck to see transmission lines up close. This visit underscored the critical importance of traditional utility systems and resilient infrastructure in maintaining reliable energy.
Key Takeaways from AEP Texas:
Texas is the fastest-growing state since 2020.
Load growth on the Texas grid was approximately 550 MW/year over the past two years and is continuing to rise.
This growth is largely driven by commercial sectors (data centers and crypto mining) and industrial sectors (oil & gas, chemicals, and metals).
By 2030, ERCOT estimates the potential Texas load to reach 150 GW.
The Permian Basin Reliability Plan, which the legislature requires under HB 5066 (88(R)), was introduced to deal with rapid demand growth, reliability concerns, and infrastructure limitations. Among other solutions, the plan identifies two expansion options for voltage and infrastructure issues: (3) 765 kV lines or (5) 345 kV lines. Higher voltage transmission increases stability and reduces power loss over long distances. The plan states that as much transmission as possible should run out from the Permian Basin.
AEP is evaluating and adopting more automation, including drone technology, line sensors, and early fault detection.
AEP’s response to HB 2555, which mandates improvements to grid reliability during extreme weather events by way of resiliency plans, proposed a comprehensive plan to harden its infrastructure, including:
Investments in distribution automation and advanced monitoring systems to improve outage detection and response.
Upgrades to infrastructure, such as pole replacements and undergrounding select power lines in high-risk areas.
Enhanced vegetation management to prevent outages caused by tree interference during storms.
The tour continued with a welcome dinner and presentation from Texas Pacific Water Resources (TPWR). TPWR is addressing the pressing issue of produced water, which is a byproduct of oil and gas operations. For every barrel of oil produced, between four to nine barrels of salty, contaminated water are generated. Historically, this produced water has been injected back underground, pressurizing aquifers. TPWR is recycling this briny water through treatment processes for alternative uses, helping mitigate Texas’s growing water crisis.
Highlights from TPWR's Presentation:
Produced water must be treated extensively before it can be used for anything other than oil and gas operations (where it's injected back into wells to help bring more oil to the surface).
The Permian Basin generates approximately 20 million barrels of produced water per day—three times the amount used per day by the City of Austin.
TPWR has developed a water treatment system capable of producing varying water qualities for different uses, relying on filtration, chemical treatment, oxidation processes and nanofiber ultrafiltration.
TPWR’s treated water is so pure that minerals must be pumped back before being added to water supply or a local water body.
TPWR has also laid pipelines to transport recycled water directly back to oil and gas operators for reuse, reducing reliance on trucks.
TPWR launched a pilot project this year to test the use of treated produced water for irrigating alfalfa, with promising results from earlier greenhouse testing.
The second day of the tour began with a breakfast presentation from Apex Clean Energy. Apex is making significant strides in Texas with its green hydrogen project, which will produce green fuels in volumes never before seen in the U.S. Apex highlighted Texas as an ideal location for green hydrogen production, noting the projected impact of their Project Rio proposal. This project is expected to contribute $190 million in property taxes, $588 million in school district taxes, and $165 million in water payments, with a total fiscal impact exceeding $2 billion, not including billions in indirect economic benefits.
Key Statistics from Apex Clean Energy:
Nearly $20 billion in projected investment.
Over 400,000 acres leased, with more than $1 billion in lease payments over the project's lifespan.
Over $600 million in local tax revenue over the first 30 years.
More than 4 GW of wind and solar projects under construction or in operation.
The Apex Conservation Grant has contributed $1.1 million in Texas to date.
Approximately 10,000 local construction jobs will be created over a 3- to 5-year build cycle.
The day continued with tours of Angelo Solar & Storage (owned and operated by Apex Clean Energy) and Aviator Wind (owned and operated by NorthStar Clean Energy). Attendees observed the growing impact of solar power, with a focus on both generation and energy storage, as well as the potential of wind energy to meet future power demands. Aviator Wind, Texas’s largest single-phase wind project, demonstrated the vast potential of wind energy to sustainably meet Texas's energy needs.
Notable Points from Aviator Wind:
Aviator Wind is one of the largest single-phase wind projects in the U.S., with a total of 525 MW in Coke County, Texas.
The project features 191 General Electric wind turbines across 50,000 acres spanning 360 square miles.
Aviator Wind’s carbon offset is equivalent to removing nearly 300,000 cars from the road each year.
Superintendent Fabian Gomez of Water Valley ISD presented on new school facilities (Career and Technical Education Facility, Cafetorium, Sports Practice Facility, etc.) built with $14.2 million in funding from this project.
Policy Considerations:
Our key takeaway and policy consideration from the San Angelo Energy Tour revolved around high-voltage direct current (HVDC) transmission lines. Compared to traditional alternating current (AC) lines, HVDC transmission reduces energy losses over long distances and increases efficiency, facilitates renewable development and increases reliable grid interconnectivity over long distances.
Another key policy impact is that of the vast economic growth experienced by rural Texas due to the growth of solar and wind energy in the region. Tracing back to the Renewable Portfolio Standard, Texas’ renewables growth not only increased load to the grid but provides funding for schools and infrastructure in the areas that need it most. According to The Economic Impact of Renewable Energy and Energy Storage in Rural Texas report by Dr. Joshua D. Rhodes (2023), over 60% of the taxes and landowner payments for utility-scale solar, wind and battery storage in Texas are paid to rural counties, where a county receives approximately $16-20 million in lifetime taxes (including school taxes) for a 100 MW wind project
Supporting the treatment of produced water, for instance through the Texas Water Fund, is a central opportunity to make more water available for Texans.
After a full day of learning, the group returned to the Texas Capitol, enriched with new insights and connections. This tour not only showcased Texas’s energy diversity but also underscored the state's commitment to sustainable innovation. These projects are providing carbon offsets, millions of dollars in tax revenue, funding for local schools, net-zero carbon options for transportation and more—benefiting Texas now and in the future.
A big thank you to all the companies that hosted us and shared their valuable insights, and to the legislators and staff who took part in making this tour a success. We look forward to continuing this important conversation and advancing Texas’ energy future together.