Insider Brief:
- NextEra Energy is considering doubling its investment in Texas, already at US$20 billion, in the next few years due to a spike in energy demand
- The U.S. is expected to see electricity demand increase by 35-50% by 2040
- The next 10 years may be the most energy-hungry decade in U.S. history, a new report finds
Florida-based NextEra Energy is considering doubling its US$20 billion investment in renewables in Texas in the next few years, Reuters reported the company’s renewable division head as saying on March 12.
“Everything is happening in Texas,” said Michele Wheeler, NextEra Vice President for Regulatory and Political Affairs. “It really is easier here in Texas.” Wheeler made the comments at a panel during the CERAWeek energy conference in Houston.
Electricity demand in the United States is expected to surge in the next decade and beyond, a report published this week by American Clean Power and conducted by S&P Global Commodity Insights found.
American electricity demand could increase by 35-50% by 2040, with the next decade expected to demand more new electricity than in any previous ten-year period in American history. Demand could outstrip supply until 2030, the report found.
An increase in construction of data centres, paired with new manufacturing activity coming online is expected to drive this surge in demand. Projects to electrify transportation and heating will also substantially increase the need for electricity.
Texas, which produces the most power of any state in the U.S., is expected to see electricity demand double by 2030, Reuters said. Population growth, a spike in crypto mining, and electrification of oil and gas operations will all increase this need, as will more extreme weather events due to climate change.
NextEra is also considering shale and fracking options, and is now exploring portions of the Permian Basin, the largest shale oil basin in the world which covers both Texas and New Mexico.
