Role of Energy Efficiency and Onsite Renewables in Meeting Energy and Environmental Needs in the Dallas/Fort Worth and Houston/Galveston Metro Areas

R. Neal Elliott and Maggie Eldridge

September 2007

Executive Summary (abridged)

The state of Texas is rapidly growing, with population rising at an annual rate of 1.8% and the economy expanding at an annual rate of 3.8% from 2000 to 2006. About half of the state’s population and a similar share of electricity consumption and peak demand are concentrated in the state’s two largest metropolitan regions, the greater Houston and Dallas/Fort Worth (DFW) areas.  These regions are also among the fastest-growing in the state.  Unfortunately, these regions also face significant environmental challenges, in part because of the concentration of economic activity and population.  If the growth in these regions continues, new resources will be needed to meet the surging demand for electricity without worsening their environmental challenges.

A recent American Council for an Energy-Efficient Economy (ACEEE) report showed that energy efficiency, onsite renewable energy, and expanded demand response can meet all of Texas’ new needs for electricity over the next 15 years. The statewide report proposed a suite of policy recommendations to realize this potential. In this follow-up analysis, we explore how these policies can contribute to meeting the energy needs of the DFW and Houston metro regions.

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36 pp., 2007, $20.00, E078