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Texas boosts investment in energy fund to meet growing demand

San Marcos, Texas used to be a small town, but with the undeniable growth in most communities along the I-35 corridor, that is no longer the case.

Andrea Villalobos, the assistant director of planning and development services for the City of San Marcos, expressed her deep admiration for the community’s growth and her love for the area, stating, “I’ve witnessed the community’s evolution and have come to cherish my life in this region.”

Villalobos has been an active member of the San Marcos community for the past ten years.

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

San Marcos has experienced significant growth over the years, and Villalobos has been there every step of the way. Currently, he is working with the city to develop a strategic plan for the next two decades.

Villalobos stated that San Marcos has witnessed an impressive growth in recent times, with the addition of approximately 8,000 new housing units since 2020.

In 2023, Texas saw a massive influx of people with close to half a million individuals relocating to the state, as per the U.S. Census Bureau. This increase in population has led to a surge in residential and commercial development, which in turn has created a higher need for energy.

Dr. Taylor Collins, an energy economics researcher at the University of the Incarnate Word, pointed out the natural advantages that make them better positioned to address the growing demand for energy. “We have heavy sunshine and strong winds blowing, which give us an edge over others,” she said.

According to the Electric Reliability Council of Texas (ERCOT), the state’s power grid will require twice the amount of energy it currently supplies by 2030. It’s not just the increasing population that is driving the demand for energy, as per Collins.

According to Collins, the reason behind the increased demand for energy in Texas is largely due to the tech industry and data centers that require round-the-clock operations. As a result, Texas has been relying heavily on fossil fuels to meet this demand and keep the energy flowing continuously.

Texas state officials have revealed their intention to increase the financial backing of their power grid, as they are planning to double the investment in the Texas Energy Fund. The investment is expected to rise from $5 billion to $10 billion, reflecting a significant boost in the state’s power infrastructure.

Collins expressed his satisfaction by saying that it was a positive move in the right direction. He emphasized the importance of being cautious when dealing with electricity and believed that it is better to over-invest than to under-invest.

ERCOT, which manages the grid for 90% of the state, is allocating funds to aid in the construction of new gas power plants. The main purpose of these plants is to provide a steady supply of electricity to numerous households. According to Collins, utilizing all available energy sources is crucial in ensuring grid reliability.

Collins emphasized the importance of diversifying our energy sources to ensure the resilience and stability of our energy system. “We don’t want to put all our eggs in one basket,” she stated. “It’s crucial to have a mix of different sources to protect against fluctuations and ensure a reliable supply of energy.”

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