New report finds coal and wind energy usage tied in Texas for the first time

winds of change

Wind energy usage in Texas has been slowly creeping up on coal — and now the two are neck-and-neck. Getty Images

In an electrifying sign for the renewables sector of Houston's energy industry, wind for the first time has essentially tied with coal as a power source for Texas homes and businesses.

In 2019, wind (19.97 percent) and coal (20.27 percent) were locked in a statistical dead heat to be the No. 2 energy source for customers of the Electric Reliability Council of Texas, or ERCOT. Natural gas ranked first (40.2 percent). The Austin-based nonprofit manages about 90 percent of the state's electrical grid.

Houston stands to benefit greatly from these winds of change.

Long dominant in the oil and gas industry as the Energy Capital of the World, Houston is adapting to the shifting tide from traditional energy sources to renewable energy sources like wind and solar. Over 30 companies involved in wind energy are based in the Houston area. Major local players in wind energy include BP Wind Energy North America Inc., EDP Renewables North America LLC, and Pattern Energy Group Inc. In addition, many of the state's more than 130 wind-generation projects are operated from Houston.

Bob Harvey, president and CEO of the Greater Houston Partnership, says the region's "unparalleled experience" with massive energy initiatives supplies an edge in the burgeoning renewable energy sector.

"Houston's talent base knows energy, from development to commercial operations, and the region offers a competitive advantage to renewable energy companies looking to develop projects both domestically and around the world," Harvey says. "Houston and Texas are well positioned as leaders who are developing large-scale renewable energy projects in both wind and solar."

Harvey says ERCOT's aggressive pursuit of wind and solar power also bodes well for Houston and the entire state.

"When combined with our natural advantages of great sites for wind and solar, our market structure has made Texas a global leader in the transition to low-carbon power generation," he says. "We expect Houston will continue to play a major role as wind, solar, and other renewable energy sources continue to rise on a global scale."

Susan Sloan, vice president of state affairs at the American Wind Energy Association, notes that Texas leads all states for wind energy, with 25 gigawatts of capacity generated by nearly 14,000 wind turbines. The Lone Star State produces about one-fourth of the country's wind power, and the wind energy industry employs more than 25,000 Texans.

With another 9 gigawatts of capacity coming online, "Texas continues to champion investment in wind energy as the state's electric load continues to increase," says Sloan, who's based in Austin. "Wind is an established and growing part of the Texas energy economy, and will be for years to come."

Texas has made great strides in wind energy in the past decade. In 2010, wind represented only 7.8 percent of ERCOT's power generation and ranked as the grid's No. 4 energy source, while coal stood at 39.5 percent and ranked first.

In September 2019, Norwegian energy research firm Rystad Energy predicted wind will bypass coal as a Texas energy source in 2020. Rystad Energy, which has an office in Houston, expects wind to generate 87 terawatt-hours of electricity in Texas this year compared with 84.4 terawatt-hours from coal. One terawatt-hour equals the output of 1 trillion watts over a one-hour period.

"Texas is just one of many red states that have recently 'gone green' by harnessing their great wind-generation potential," Carlos Torres-Diaz, head of gas market research at Rystad Energy, said in a release. Renewable energy sources like wind "are reaching a level where new installations are not driven solely by policies or subsidies, but by economics," he added.
The report indicates the Lone Star State is home to roughly one-fourth of all U.S. wind power production. Getty Images

New report shows that Houston and Texas are making strides in wind energy

More power to us

With over 4,600 energy-related businesses employing more than 237,000 people, Houston has earned recognition as the "Energy Capital of the World." But when people think of Houston's energy sector, oil and gas almost automatically come to mind, given that about one-third of the publicly traded oil and gas companies in the U.S. are based in the Houston area.

Yet wind energy is making inroads in Houston. Susan Davenport, senior vice president for economic development at the Greater Houston Partnership, says more than 30 companies in the Houston area operate in the wind energy sector.

"Houston is actively working to grow this sector, so we hope people will seriously think of Houston when they think of renewables in this new era of energy," Davenport says at an April 9 news conference in Houston where the American Wind Energy Association released its 2018 state-of-the-industry report.

That's not to say, though, that Houston is ready to cede its dominance in the oil and gas sector.

"Houston has long held the title of 'Energy Capital of the World,' and we fully intend to maintain that status," Davenport says. "As global energy forecasts continue to show an ever-increasing need for energy, we know oil and gas will be critical for years to come. But at the same time, as that energy mix gets larger, we know an increasing share of energy will come from renewables. And we're already capturing a sizable share [of that market]."

That sizable market share includes venture capital. Of the $5.2 billion in venture capital reeled in by Houston businesses from 2015 to 2017, renewable energy accounted for more than 35 percent, according to the Greater Houston Partnership.

Davenport said Houston is "uniquely suited" to support companies involved in wind energy and other types of renewable energy, thanks to its deep pool of energy-oriented talent.

The American Wind Energy Association's annual report for 2018 shows the wind energy sector employs between 25,000 and 26,000 people in Houston and elsewhere in Texas, up from 24,000 to 25,000 in 2017, with the total investment in Texas wind energy projects sitting at a whopping $46.5 billion. More than one-fifth of wind energy jobs in the U.S. are located in Texas.

In employment, investment, and several other categories, Texas rules as the undisputed leader of the U.S. wind energy industry.

"The success story in Texas continues," says Susan Williams Sloan, the Austin-based vice president of state policy for the American Wind Energy Association.

The report indicates the Lone Star State is home to roughly one-fourth of all U.S. wind power production. If Texas were a country, the wind energy group says, it would rank fifth in the world for wind power capacity, with nearly 25,000 megawatts installed. And with nearly 7,000 megawatts of wind energy projects under construction or development at the end of 2018, Texas is adding more wind energy capacity than what all but two other states actually have installed.

At of the end of 2018, nearly 13,400 wind turbines dotted the state's landscape, mostly in West Texas.

It's not just utilities that are fueling the growth of wind power in Texas. The association calls Texas the "nexus" for non-utility demand for wind power.

Today, 38 non-utility companies have bought or are planning to buy 4,900 megawatts of wind energy in Texas, including Shell Energy, AT&T, Budweiser, ExxonMobil, and Walmart, according to the association.

"Texas continues to lead the nation, with hard work and ingenuity, in harnessing this great American renewable energy resource, literally out of thin air," says Tom Kiernan, CEO of the Washington, D.C.-based American Wind Energy Association. "Texas has a long and storied history of energy production and as [our] report demonstrates, wind is an important part of the state's energy success story. In many ways, the Texas wind story is the story of American wind power."

The association released its 2018 report in advance of WINDPOWER, the wind energy industry's biggest conference, which is set for May 20 to 23 at Houston's George R. Brown Convention Center. More than 8,000 people are expected to attend.
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Chevron's Houston-based venture group taps two companies for its startup-focused program

energy tech

Chevron's corporate venture arm that invests into energy tech innovation and supports startups within the industry has tapped two companies for its Chevron Technology Ventures Catalyst Program.

Entech Solutions and mIQroTech have both recently been named new partners in the program, which allows the startups support and guidance during growth and acceleration from Chevron and its network.

Norway-based Entech Solutions AS has developed itsSuperstage Pinpoint Stimulation to address high intensity stimulation in increasingly long horizontal wells, according to a press release. The product aims to improve production performance and lower costs.

"Collaboration with Chevron will allow us to demonstrate Superstage efficiencies in a variety of basins worldwide," says Anthony Kent, co-inventor of Superstage and Entech's General Manager for North America, in the release.

"Working with a leading global operator gives us access to expertise needed to standardize this robust and versatile hardware technology," he continues.

Meanwhile, Tampa, Florida-based mIQroTech is addressing pipeline leak concerns within the energy industry by using artificial intelligence and internet of things. The startup joined the Catalyst Program in July.

"Our goal is to deliver a transformative change to the global oil and gas industry," says founder and chief executive officer, Meade Lewis, in a press release.

"Better data, analytics, and intelligence will add efficiencies to pipeline operations and empower more informed and faster decision-making. We appreciate that Chevron recognizes our potential to deliver solutions to enable safer delivery of oil and gas," Lewis continues.

The company, which has received investments from Plug and Play, Ocean Capital, Republic, and Harvard Business School Alumni Angels, and more, will focus on growing its team and customer base.

Chevron also recently contributed to Houston-based ThoughtTrace's $10 million series B round in May and signed on as a partner for the Houston expansion of cleantech accelerator Greentown Labs.

Houston entrepreneur creates a new digital platform to help connect freelancers to clients

calling all creatives

By 2027, freelancers will account for the majority of the American workforce — and Houston is already well represented by the freelance space.

According to a recent study, Houston is home to 117,260 skilled freelancers who generated more than $4.1 billion in revenue in 2018. This burgeoning environment for freelancers presents many opportunities for innovations in the tech world, as one Houston entrepreneur has already discovered.

Yared Akalou, founder-and-CEO of Alcove Group and self-described designer-focused entrepreneur, released his third innovation catering to freelancers of the Houston area. His digital solutions platform, IAmOther50, assists freelancers with securing new clients by sharing their personal stories rather than just submitting their professional experience, it uses videos and articles to promote the work of a freelancer and connect them to their next client.

"I am really on a mission," Akalou tells InnovationMap. "I have been talking about the future of work for over a decade now. The paradigm will change to viewing work as a service, so it is important to tell a freelancer's story through a more engaging and novel way."

At first glance, the digital platform seems like a departure for Akalou who in 2017 founded Alcove, a portable laptop case that serves as a private workspace for freelancers to use amid coffee shops or coworking spaces. However, IAmOther50 serves as a distinctly separate yet integral part of his innovation landscape.

"These projects have been a combination of my focus and research," says Akalou. "My new platform works hand in hand with Alcove, supporting the mission to help people stay productive from anywhere."

The digital platform serves to capture the brand of the freelancer along with their personality and experience. It lives at the intersection of popular social media platforms and professional platforms such as LinkedIn, except just for freelancers in the Houston area. Currently, any freelancing professional in the Houston area can join for free by filling out a survey that customizes their goals for their profile.

"IAmOther50 provides information in a contextual way," says Akalou. "We have this guiding principle of delivering value even before the prospective client contacts the freelancer for an interview or potential position. It's about going beyond just a resume of what you've done and showcasing how you add value right now."

Akalou, who is also one of the mentors in The Ion Smart and Resilient Cities Accelerator, is focused on elevating the professional profiles of many freelancers, including those outside the Houston area. He is aiming to grow the platform to a self-service platform that can connect freelancers to clients all over the biggest metropolitan areas soon.


AI-optimized teams are a game changer for energy companies, this Houston expert says

guest column

The speed and scale of change in the business world had been on a fast track, with technology enabling bigger and bolder advances within shorter time frames.

Enter 2020: a global pandemic struck, and here in the Gulf Coast region, we were also hit by an energy industry downturn. The effects of both these crises have touched nearly every sector and revealed the factors that are essential to effectively managing through economic recovery. In a time of extreme challenges, two areas — human talent and technology — are now more important and intertwined than ever.

Earlier this year, Deloitte released its 2020 Global Human Capital Trends report, "The social enterprise at work: Paradox as a path forward," which addresses the intricacies of this issue. The survey was conducted before the pandemic took hold only to see its findings on the future of work play out in real time as companies respond to COVID-19 and the economic toll it's taking.

The rise of the superteam

Despite some dramatic predictions about machines replacing humans, many organizations, including oil and gas companies, are looking to integrate artificial intelligence into teams of people. These "superteams" of human talent and AI may enable organizations to reinvent themselves to create new value and meaning. For organizations that still view AI mainly as an automation tool to reduce costs, connecting AI initiatives with efforts to craft more effective teams is a first step toward enabling humans and machines to work together in new, more productive ways.

In the report, 60 percent of respondents said their organizations are currently using AI to assist, rather than to replace, workers. An additional 58 percent explained that they are using it to improve consistency and quality because superteams can allow organizations to both transform the nature of their output and create worker capacity. Furthermore, 66 percent of respondents believed that the number of jobs would either stay the same or increase as a result of AI's use in the next three years.

Drilling down on the energy sector

As the oil and gas industry reels from the dual effects of a global health crisis and oil price shocks, most organizations are focused on recovery, but forward-looking companies are devising strategies for better integrating technology into their operations.

The value of superteams is clear: they offer the promise of enabling organizations to reinvent themselves while giving employees the potential to further their careers by learning sought-after skills. It's no surprise, then, that many oil and gas companies are rethinking how the future of work may play out within their operations. For example, as outlined in Deloitte's Tech Trends 2020 report, a growing cohort of AI-powered solutions is increasing the need for technology that understands and responds to humans. This might take shape via a field worker being equipped with digital tools to provide real-time support for maintenance and upgrades. Augmented reality applications could offer the employee context-based instructions and the ability to connect with remote workers for live support.

This is just one example of how superteams can transform the sector; there are many other ways that humans and technology can work together to drive organizational value.

Working together to shape the new normal

As the future of work rapidly evolves amidst the world's "new normal," business leaders are wrestling with an increasing range of challenges. These challenges are especially pronounced at the intersection between humans and technology, where new questions have risen about the impact of emerging technologies on workers and society. Organizations that tackle these issues head-on – changing their perspectives to consider not only "could we" but also "how should we" – will be well-positioned to make the bold choices that drive organizational value.


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Amy Chronis is the Houston managing partner at Deloitte.

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