Texas' Cheapest Energy: Wind Power Leads

Wind energy is the cheapest new electricity generation in Texas—full stop.

The Numbers (EIA / Lazard LCOE)

• Wind (West TX / Panhandle): 1.9¢/kWh levelized cost
• Solar (West TX): 2.5-3.5¢/kWh
• Combined Cycle Gas: 3.5-5¢/kWh (fuel price dependent)
• Coal: 6-10¢/kWh (aging plants, regulatory risk)
• Nuclear: 8-12¢/kWh (new build)

Why Texas Wind Wins

• World-Class Resource: Great Plains wind corridor + Gulf coast breezes = 40-50% capacity factors
• CREZ Transmission: $7B Competitive Renewable Energy Zones lines (completed 2013) move West TX wind to population centers
• Market Design: ERCOT energy-only market rewards low marginal cost; wind bids near $0
• Scale: 40+ GW installed (2024)—#1 US state, ~6th globally if a country
• Corporate PPAs: Tech/industrial buyers lock in 10-15 year fixed prices

Caveats

• Intermittency: Requires firming (gas peakers, storage, demand response, transmission)
• System Cost: Integration costs rise with penetration; not captured in LCOE
• Winter Storm Uri (2021): Wind dropped but gas/coal/nuclear failed more—system design failure, not wind failure

For Consumers

Retail electric plans in deregulated areas (75% of TX) often offer 100% wind at or below "fossil" plan prices. Check PowerToChoose.org (PUCT official site) for current offers.