Texas can be the leader in free-market policies by strengthening energy infrastructure

Originally published at Austin American-Statesman. ​

Texas remains a magnet for people and businesses, attracting more newcomers than most states. To sustain this influx and support a growing economy, the state must strengthen the infrastructure required to meet Texas’ expanding energy needs.

The Electric Reliability Council of Texas (ERCOT) projections indicate that Texas’ energy demand will nearly double by 2030, increasing from 85 to 150 gigawatts in just six years. This revelation has sparked significant concern among state policymakers and industry leaders.

The expansion of cryptocurrency mining, data centers, and the burgeoning artificial intelligence industry drives a significant portion of this anticipated growth. These sectors, often viewed skeptically, are integral to the modern economy and are poised to drive the next economic revolution.

With the right free-market policies, Texas can maintain its leadership in technological advancement and ensure abundant energy for Texans. By removing barriers that impede energy production and disincentivize entrepreneurs from investing in Texas, the state can look forward to a bright future.

Even former skeptics recognize these industries' importance, as seen in President Trump's recent emphasis on Truth Social: "We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT!!!”

Texas has the potential to lead in this arena. The state’s abundant land and natural resources support the technology sector's growth. However, this growth necessitates a reliable, abundant energy supply, a potential that Texas is well-positioned to fulfill.

Texas is already a national leader in renewable energy production, with significant contributions from wind and solar. However, reliable natural gas remains the cornerstone of the state’s energy supply, providing power regardless of weather conditions. Furthermore, Texas has a bright path forward with the potential for expanding nuclear energy, providing a solid energy mix through market forces, not government planning.

Texas must leverage the free market's incentives to foster an environment conducive to building new power plants, including nuclear power. Policymakers should signal that Texas is open for business and ready to meet its rising energy demands efficiently.

Discouraging capital investment in power generation through increased government intervention or propping up some generation over others is counterproductive. Rather than picking winners and losers, Texas should let market competition drive the provision of abundant, reliable energy.

By embracing free-market policies, Texas sets a powerful example for other states. As states experiment with different approaches, the best ideas can emerge, fostering a competitive environment that drives progress and prosperity.

For starters, Texas needs to show free-market leadership by fighting back against onerous federal regulations that impede the energy industry's growth. The state should remove itself from the bondage of the Biden administration’s flawed green energy agenda items from the so-called “Inflation Reduction Act.” This could be done by rejecting federal funds, tax breaks, and other measures while pushing for Congress to end the IRA.

The Biden administration’s industrial policy distorts the market. Texas should not fall into the trap of picking another industrial policy and instead provide a level playing field where all forms of energy can compete.

Texas has a bright future, likely leading the nation in economic and technological advancement. By adhering to free-market principles, reducing unnecessary spending, taxes and regulations, and fostering a competitive energy market, Texas can continue to attract people to open businesses, work and raise families.