Renewables Are Doing Some Heavy Lifting When It Comes to the Texas Grid

November 4, 2025 – Texas is relying more heavily on renewable energy to meet its record-breaking electricity demand, as new data shows wind and solar power now provide nearly 40 percent of the state’s total generation. The growth comes as Texas’ booming economy and expanding data center industry drive electricity consumption to historic highs.

Solar power has seen the fastest gains, producing roughly 50 percent more energy in 2025 compared to last year and nearly four times as much as in 2021. This surge is helping to offset the state’s reliance on natural gas, which still supplies about 43 percent of overall demand. Wind power remains a vital contributor, particularly during evening and overnight hours when solar production fades.

Analysts say the shift is both economic and practical. With Texas continuing to attract energy-intensive industries—such as hyperscale data centers, electric vehicle manufacturing, and semiconductor production—developers are turning to renewable sources that can be deployed quickly and at competitive prices.

The Electric Reliability Council of Texas, which manages the state’s grid, reports that hundreds of large-scale renewable and storage projects are seeking interconnection. Yet experts warn that continued demand growth could soon outpace new generation capacity.

While Texas remains a leader in renewable energy, the rapid expansion of power-hungry industries will test whether the state can maintain both affordability and reliability as it transitions toward a cleaner, more diversified grid.