How the Cut Inflation Act Could Help the Texas Network
The Inflation Reduction Act, which aims to reduce U.S. emissions and secure the country’s energy future, could also help stabilize Texas’ power grid.
Driving the news: President Biden signed the $740 billion bill this month, and Republicans are lambasting him.
Why is this important: Texas’ power grid crashed in the killer winter storm of 2021 and has flirted with catastrophic outage several times during record-breaking heat waves this summer.
- And as the state’s population continues to grow, the demand for electricity will only increase.
How it works: The new law contains provisions that encourage more energy-efficient appliances, including electric HVAC and water heaters, which would reduce demand per household.
- The law will also make it less expensive to install solar panels, which could alleviate demand from Texas power plants.
- It also provides tax credits for the purchase of new or used electric vehicles, which can be used to store energy. Parking lots could retain energy when demand is low and release it when demand increases.
What they say : “This has the potential to reshape our electrical infrastructure and reduce local energy consumption,” Javad Mohammadi, a researcher specializing in electrical grid modernization at the University of Texas at Austin, told Axios.
- “We have to prepare to take advantage of this opportunity.”
The bottom line: While the bill won’t be popular among Republicans leading Texas, the new policies will likely benefit that state more than most.