The Mother of all Markets
Yesterday the Texas Senate voted out SB 545, which would go a long way toward creating a viable solar market in Texas. It was evident from the interviews for Igniting Texas’ New Energy Economy that helping to create a viable market for any renewable technology would be key to benefiting from it.
From Igniting Texas’ New Energy Economy:
We might not have the most people of any state, but we definitely use the most energy. Texans use, per capita, up to twice as much energy as our neighbors in other states. But even if we reduce our per-capita consumption, growth projections suggest Texas is going to need more energy options—a lot more—far into the future. We are the mother of all domestic energy markets. This reality might make some environmentalists and energy planners cringe (for different reasons), but it is music to the
ears of entrepreneurs and corporations intending to power the next century. “We have 26 million Texans,” says Robert King, president of Good Company Associates. “We have a demand for 30 percent more electricity than California. We are very energy-intensive, we have a lot of energy-intensive industries. We have hot territory and cold territory. So anybody with a good energy idea has a huge potential market right here.” Of all the topics talked over with interviewees, none enjoyed as much unanimity as did the importance of a large, ready and eager consumer market and our state’s ability to spur it. “State government can send very clear market signals to industry,” says UT professor Dr. Michael Webber. “Because what sets Texas industry apart is consistent adherence to fundamental, sound business principles, which means they respond to market signals. If government sends a clear market signal that it is serious and intent on getting Texas on a transition toward a cleaner energy path, that market signal will be very effective.” “The technology is out there,” Stanbery says. “We are not waiting for someone to invent something. We are just waiting for it all to be pulled together and for people—those political leaders who really want to provide leadership and for the advocacy organizations that really want to see a solution—to say, ‘Look, it’s right here.’ If we create that market, the market will respond.” In fact, it is more than a little ironic that Texas’ lack of aggressiveness in energy efficiency and clean tech makes it one of the most fertile markets for these products. “This may sound counter-intuitive,” says EDF’s Jim Marston. “But because we have not done much to date, there is a lot of low-hanging fruit out there.”
