IER: Wind, Solar, Battery Project Cancellations Spike in Texas

[Note: The Institute for Energy Research is a highly respected energy think tank based in Washington, DC. IER analysis has often influenced legislation and regulatory actions in the nation’s capital. The excerpt below is from a piece published on July 10.]

Renewable Energy Project Cancellations Spike in Texas

Key Takeaways

1 - Texas is seeing a spike in the cancellation of renewable energy projects and batteries over the past two months due to Trump’s tariffs and uncertainty regarding the future of their tax credits.

2 - Congress passed the One Big Beautiful Bill Act, ending solar and wind tax credits by 2028.

3 - The wind and solar industries have been around for decades and should no longer need subsidies that are intended to get new industries off the ground.

4 - Texans and all Americans will benefit from the removal of the subsidies, as wind and solar have added to the 25% increase in residential electricity prices during Biden’s term in office.

Renewable energy and battery storage companies are canceling their Texas projects at rates not seen since the height of the COVID-19 lockdowns. In the last two months, four gigawatts of battery storage systems, 3.5 gigawatts of solar farms, and nearly two gigawatts of natural gas power plants have been canceled, according to a recent analysis of Electric Reliability Council of Texas (ERCOT) data. Battery storage projects are especially vulnerable to cancellation because nearly all battery cells used in those systems come from China, which is being heavily tariffed. The cancellations are occurring despite Texas expecting to see an unprecedented increase in electricity demand as data centers and other large electricity users move into the state. According to ERCOT, the organization operating the power grid that serves 90% of electricity demand across Texas, its electricity demand could surge 70% by 2031.