More Generation, More Transmission, More Load, More Challenges: Texas Grid Roundup #90
Recent reports and rulemakings from ERCOT and PUCT point to three major trends shaping the Texas grid: rapid growth, rising transmission investment, and large load management.
ERCOT’s latest operational and interconnection updates show continued growth in new power generation projects. Since December, roughly 9,275 megawatts of new capacity have been added to the interconnection queue, including solar, wind, battery storage, and gas projects.
What stands out most in the latest data is the rapid growth in proposed gas development. As of January 2026, ERCOT’s queue included 57,403 megawatts of proposed gas generation; that’s up from 28,774 megawatts in January 2025, nearly doubling in a single year.
That said, solar generation (163,000 megawatts) and battery storage (178,000 megawatts) continue to dominate the queue. By comparison, ERCOT’s all-time demand record is 85,508 megawatts.
Still, the increased gas numbers reflect the growing emphasis among policymakers and regulators on gas generation (as seen in policies such as the Texas Energy Fund). It remains to be seen whether supply chains and other worldwide economic trends will allow gas plants to be built quickly enough to meet rising demand. In the meantime, it is critical for the Texas economy that the state build on its diverse mix of generation sources to help serve rapidly growing demand.
It also is important to note that interconnection queues represent proposals rather than guaranteed construction. Historically, a significant portion of projects withdraw before reaching completion. The surge in gas proposals may therefore reflect market positioning rather than firm development.
Transmission Investment Scales to Meet Growth
Alongside the surge in proposed generation, Texas is preparing for a major increase in grid infrastructure spending.
Planned transmission investment is expected to reach approximately $7.5 billion in 2026, compared with about $3.97 billion in 2025.
This level of investment signals a new phase of grid expansion in ERCOT. Texas needs transmission — not only to connect new generation resources, particularly in remote areas, but also to support rapidly growing electricity demand in urban and industrial regions. And as demand grows, the cost of the new transmission will be spread out over a larger customer base, which reduces potential cost increases for residential customers.
Reliability Planning Highlights Seasonal Risks
ERCOT’s most recent Monthly Operational Reliability Assessment (MORA) suggests some new gas-powered generation is beginning to come online.
