Input Stories

The Trump administration wants more traditional energy plants up and running, fast—but a Texas program shows the market may not be ready to build so quickly (POLITICO’s E&E News). 
 
What’s going on: “Last year, Texas officials announced that the developers of 17 energy projects would be eligible to receive low-interest, state-backed loans to add enough new gas plants to the state’s main electric grid to power nearly 2.5 million homes. But since then, seven have withdrawn or been ruled ineligible for the so-called Texas Energy Fund, as has a replacement project, with reasons ranging from financing to supply chain trouble.”  
 
The details: Earlier this month, the Texas Public Utility Commission denied loans for two power-generation facilities that are part of the fund: a 162-megawatt plant sponsored by Frontier Group of Companies and a 900-megawatt endeavor by EmberClear Management. It did not give a reason. 

• Other endeavors—including a 930-megawatt project by French developer ENGIE—have withdrawn from the program, “with some critics noting that deadlines could be hard to meet or that the constraints on financing were not competitive.”  
• State lawmakers are weighing legislation that would require half of all new power generation on the main grid to be gas-powered, warning that Texas requires gas to be able to power new data centers and manufacturing. 

Why it’s a problem: “The situation in Texas is a microcosm of the reality across the power sector. After years of declining demand for gas power, skyrocketing demand fueled by the tech industry has grid operators and utilities suddenly desperate for new fossil fuel plants. But the supply chain had already adapted to lower demand, meaning parts are now years away.”  

• Gas-turbine manufacturers are seeing a surge in orders. Siemens Energy, one of the biggest U.S. makers of gas turbines, said that “‘persistently high demand’ means that manufacturing slots are shrinking and that slots are ‘selling faster than they can increase manufacturing capacity.’” 
• GE Vernova has also seen a demand uptick and is expanding capacity at a gas turbine manufacturing plant in South Carolina to boost production 35% by 2026. 

What’s being done: Energy Secretary Chris Wright has talked about invoking the Defense Production Act to bolster U.S. gas turbine production, and Rep. Julie Fedorchak (R-ND) has said she is at work on a “legislative framework” to solve the turbine shortage.