Texas has emerged as the United States' clean-energy powerhouse as future green energy capacity in the Lone Star State far surpasses other states.
The Data: A post on X by Michael Thomas relayed data from the Energy Information Administration.
Over the next 18 months, Texas is expected to build more clean energy than any other state.
— Michael Thomas (@curious_founder) July 25, 2024
The state will build twice as much clean energy capacity as the next two states—California and Arizona—combined.
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The data includes projects that have permits and plans to reach commercial operation in the next 18 months.
Why it Matters: Texas' green energy champion status may surprise many observers; its high clean energy capacity is belied by the fact that it is generally defined as a Republican state. Conservative lawmakers have historically criticized green energy in favor of fossil fuels.
The data is unsurprising, though, given Texas' geography and climate. It is the second-largest state by area and enjoys high sunlight coverage relative to other states, given its southern location. It is also relatively flat, its topology is favorable for building cheaply. Finally, Northern Texas is an especially windy region of the U.S.
The green energy capacity increase is necessitated by the fact that the state is rapidly growing in population. In addition, many energy-intensive Bitcoin miners operate in the state.
For investors interested in the green energy sector, here are three ETFs to consider:
- iShares Global Clean Energy ETF (NASDAQ:ICLN)
- First Trust NASDAQ Cln Edge Smart Grid Infra Fund (NASDAQ:GRID)
- Invesco Solar ETF (NYSE:TAN)
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- Tesla Stock Approaches Golden Cross: Is EV Stock Ready To Accelerate?
Image created using artificial intelligence via Midjourney.