President Donald Trump claims that rapid adoption of solar and wind power has made U.S. electricity unstable and expensive, justifying his bid to end most subsidies for renewable energy.
- Texas grid relies increasingly on solar and wind power
- State reduces blackout risk with battery storage
- Big fossil fuel dependent grid PJM doing worse on cost and reliability
July 10, (Reuters) – President Donald Trump claims that rapid adoption of solar and wind power has made U.S. electricity unstable and expensive, justifying his bid to end most subsidies for renewable energy.
But reliability has improved dramatically in the U.S. grid with the most renewable energy – in Texas – and electricity prices there are below the national average, according to regulatory filings and price data reviewed by Reuters. At the same time, some grids that rely primarily on fossil fuel generation have experienced reliability issues and surging prices.
The Electric Reliability Council of Texas (ERCOT), the state’s main grid operator, forecasts only a 0.30% chance of rolling blackouts during peak energy demand in August, according to its June 6 reliability assessment. That is a vast improvement from the 12% chance it predicted for August 2024.
Electricity prices for Texas residential customers and businesses are about 10 cents per kilowatt hour, 24% below the national average, according to the latest monthly report by the U.S. Energy Information Administration.
“ERCOT has done a good job of defining the products needed for energy and reliability,” said Joshua Rhodes, a research scientist at the University of Texas in Austin. “It could be an example for other grids in how to create reliability at a low cost.”