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West Texas wind

The wind energy business in Texas is going strong.

BP and other energy companies are funneling millions of dollars into building and operating wind farms in West Texas, helping to transform the oil country into one of the nation’s leading hubs for green energy production.

Skylines dominated by nodding pump jacks increasingly are spotted with spinning turbines. Economies tied to the ebb and flow of commodity prices are finding stability in supplying the power grid.

“We’ve been through lots of booms and busts with the oil and gas industry. The oil and gas areas deplete over time,” said Doug May, economic development director for Pecos County.

“The wind resource here is sustainable. We look at these wind farms as a long-term investment in the future of Pecos County.”

Recent energy analyses predict renewable fuels — including wind, solar and biofuels — will be the world’s fastest-growing energy source in coming decades. BP’s own outlook predicts the country’s renewable energy production will surge 252 percent over the next 20 years.

Wind and solar energy are potentially huge boons to West Texas, which is the perfect location in many ways for harvesting both kinds. There’s already a lot of investment out there, and more is to come. There are some obstacles, however.

West Texas wind farms are at the end of the state’s main electrical grid, managed by the Electric Reliability Council of Texas, or ERCOT. The Public Utility Commission of Texas has been working on plans to build a more robust network of power lines to bring more wind-generated power to major cities.

But those lines are still two years and nearly $7 billion away.

Meanwhile, the federal tax credit that gives wind power generators 2.2 cents for every kilowatt-hour of energy produced is slated to expire at year’s end unless lawmakers approve a renewal.

“If Congress chooses not to renew, there is no hope for the wind industry next year,” [John] Graham, the BP executive, said of the tax credit. “Without it, U.S. wind projects aren’t viable.”

BP has joined the pack of wind executives fighting to keep the production tax credit for renewable energy. Graham said he has traveled to Washington five times since October.

You’d think giving an energy company a tax break would come as naturally to Congress as breathing, but that renewable energy credit was a casualty of the payroll tax cut deal. It could be revived, and again, it’s hard to imagine a world in which energy executives have to go begging for bones from Congress. The ERCOT issue has been in the works for four years already. That will be a big deal when it’s done.

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One Comment

  1. Andrew says:

    Good overview of the wind farm issue, renewable energy is difficult for some to chew but carefully discussing the economic payoff is extremely important