
According to the U.S. Energy Information Administration's State Profile and Energy Estimates:
"In 1999, the Public Utility Commission of Texas first adopted rules for the state's renewable energy mandate. In 2005, the state legislature amended the mandate to require that 5,880 megawatts, or about 5% of the state's electricity capacity, come from renewable sources by 2015. Lawmakers also set a goal of 10,000 megawatts of renewable capacity by 2025, including 500 megawatts from resources other than wind.89 Texas surpassed the 2015 goal in 2005 and the 2025 goal in 2009, almost entirely with wind power.90 Renewable energy sources contributed just under one-tenth of the state's net electricity generation in 2014, but that amounted to about 15% of the U.S. total electricity generated from all nonhydroelectric renewable resources. Texas was second only to California in nonhydroelectric renewable generation.91
Wind accounts for nearly all of the electricity generated from renewable resources in Texas.92 The state encouraged construction of wind farms on its wide plains by authorizing Competitive Renewable Energy Zones (CREZ), a $7-billion effort in which transmission lines were built to connect to future wind farms.93 Texas leads the nation in wind-powered electricity generation, producing more than one-fifth of the U.S. total in 2014, and, in 2011, was the first state to reach 10,000 megawatts of installed wind generating capacity.94,95,96 At the end of 2014, wind represented 14% of the ERCOT grid's generating capacity97 and produced about 9% of state net generation overall.98 Substantial additional wind generation capacity is under construction.99
Texas is rich in other renewable energy resources, including solar and biomass. High levels of direct solar radiation in West Texas give the state some of the largest solar power potential in the nation.100 The agricultural and forestry sectors provide Texas with abundant biomass and biofuel resources. Texas is expanding its use of biomass in the production of electricity.101 Currently, less than 1% of the state's electricity is generated using biomass.102 Texas has four ethanol plants in the agriculturally rich high plains region in the state's northwest.103
Hydroelectric power contributes less than 1% to the electricity generated in Texas because the relatively gentle terrain and low rainfall throughout much of the state are not conducive to its development. Reservoirs are primarily used for water storage, with electricity generation as a secondary purpose, and water is usually not released from reservoirs solely to generate power.104
Texas has a unique untapped geothermal resource: its large network of crude oil and natural gas wells. Existing wells connect to deeper geothermal resources, many with water as hot as 200°C. More than 12 billion barrels of non-potable water are produced annually as a byproduct from the state's crude oil and natural gas wells, and heat from that water could be used to generate electricity."105
Incentives for Renewable Energy
While there are few incentives for renewable energy in the Texas Tax Code, combined there are more than 100 incentives available to Texans at the federal and local levels, and from utilities. A list of these renewable energy incentives can be found on the Database of State Incentives for Renewable Energy (DSIRE).