Renewable energy, particularly solar power, is experiencing a rapid boom in Texas, making it the nation’s leader in both oil production and renewable energy generation. However, recent events have highlighted a significant problem with renewables that puts millions of people at risk of blackouts.
Texas, known for its oil tycoons, is now witnessing the rise of wind turbines and solar farms that dominate its landscape. These renewable sources of energy have allowed Texas to generate more electricity from wind and solar than any other state. However, despite the massive clean energy production, Texas’s grid is surprisingly susceptible to rolling blackouts.
In a recent incident, Texas grid operators issued an emergency alert, warning that approximately 26 million people were at risk of losing power. This was the second time in as many weeks that Texas narrowly avoided blackouts. Grid operators attributed the issue to “low wind and declining solar power generation.” The problem lies in the fact that renewables are not reliable energy sources. The wind does not always blow, and the sun does not always shine, which can lead to intermittent energy generation.
The reliance on renewables poses a challenge for meeting the constant demand for electricity. Consumers expect their appliances and electronics to work around the clock, yet renewables cannot guarantee uninterrupted power supply. This is where energy storage comes into play. Energy storage systems, such as batteries, allow for the storing of excess energy produced during optimal conditions and using it when renewable sources are not generating enough power.
The need for energy storage presents a tremendous opportunity for companies like Contemporary Amperex Technology (CATL), which is the world’s largest battery producer. CATL is poised to benefit from the growing demand for energy storage solutions. Another alternative for investors is Panasonic Holdings, which manufactures batteries for Tesla’s electric vehicles. Tesla’s increasing demand for batteries indicates the market’s potential for energy storage technologies.
Despite the reliability issue of renewables, governments and major organizations worldwide are investing trillions of dollars into green energy. As investors, recognizing the importance of energy storage and understanding the technologies that can make renewable energy sustainable will enable us to capitalize on these opportunities.
Sources:
– Original article: Can you name America’s oil king?
– Contemporary Amperex Technology (CATL)
– Panasonic Holdings