Texas Electric Grid Reserve Margins Show Resource Deficiencies Due to Large Loads

Texas RE’s Reliability Performance and Regional Risk Assessment report also shows decreased risk from extreme weather

AUSTIN, Texas, 16 June 2025—Texas Reliability Entity, Inc. (Texas RE) today published its annual Reliability Performance and Regional Risk Assessment (RP&RRA) for the Texas Interconnection. It reports increased risk of reserve margin deficiencies due to the integration of large loads, decreased risk from extreme winter weather, and a new risk focus area for 2025—artificial intelligence.

“The Texas Interconnection’s reliability performance is strong but our electric grid still faces significant risks including data center-driven load growth, the evolution of our resource mix to incorporate more variable generation sources, and cyber and physical security,” said Jim Albright, president and chief executive officer at Texas RE. “Together with industry and other regulatory bodies we’re prepared to face those challenges to help ensure the reliable and secure electricity which Texans expect.”

The goals of the RP&RRA report are to illuminate the historical and overall Bulk Power System (BPS) reliability picture, help identify risk areas, and create actionable results for reliability improvements within the Texas RE Region. The report concludes that reserve margin issues associated with large load growth represent an actionable performance trend, and the disorganized integration of large loads constitutes the largest increased risk to the grid in Texas.

The report also shows that the Texas Interconnection demonstrates adequate reliability for normal operating conditions and when subjected to contingencies within planned parameters. The Region’s resources managed extended high summer peak periods in 2024 (as in recent years), helped by new solar generation and energy storage. Annual energy production increased (alongside renewable generation output and peak renewable penetration levels) to meet projected peak loads. As a result, the Region did not experience any Energy Emergency Alerts related to insufficient responsive reserves in 2024.

The full 2024 Reliability Performance and Regional Risk Assessment report is available here.

About Texas Reliability Entity, Inc.
Texas Reliability Entity, Inc. (Texas RE) is a Texas 501(c)(3) non-profit corporation that is the Regional Entity for the area of Texas served by the Electric Reliability Council of Texas (ERCOT). Through a Delegation Agreement with the North American Electric Reliability Corporation (NERC), which is approved by the Federal Energy Regulatory Commission (FERC), Texas RE is authorized to do the following in the Texas Interconnection:

• Develop, monitor, assess, and enforce compliance with NERC Reliability Standards
• Develop regional standards
• Assess and periodically report on the reliability and adequacy of the Bulk Power System (BPS)

Texas RE is independent of all users, owners, and operators of the BPS. For more information, visit www.texasre.org.