In the heart of a land where oil pumps dominate the horizon, Texas is transforming into a true beacon of renewable energies. The vast plains of the Lone Star State, once monochrome under the oil industry’s grip, are now illuminated by wind and sun. In contrast, Alberta, rich in fossil resources, takes a more measured approach, hesitating to fully embrace its green potential. One asserts itself as a pioneer of the energy transition, while the other contemplates its next step, illustrating divergent paths in the quest for a sustainable future.
The Texas, once recognized as a bastion of oil in the United States, has become a model of green energy. Thanks to a deregulated electricity market that attracts developers, the state has seen its wind energy capacity quadruple since 2011, totaling nearly 40,000 megawatts, or about 29% of total production. The solar market has also exploded, with investments of over 28 billion US dollars. These massive transformations contrast with Alberta, which, despite favorable natural conditions, has slowed its renewable projects following government-imposed restrictions. Where Texas adopts an open and stimulating approach to attract investments, Alberta suffers the consequences of a moratorium on new applications for wind and solar, causing many projects to come to a halt.
the energy paradox of Texas
In the heart of the American oil industry, Texas, once synonymous with barrels of black gold, has embarked on a surprising transition to renewable energies. This change is all the more astonishing as natural gas remained, at the beginning of 2023, the main source of Texas’ electrical mix with 42%. However, massive investments in wind and solar illustrate an unprecedented commitment. Since 2013, wind production has surged, reaching nearly 30% of the state’s energy mix. This is surprising in a territory where it was thought that oil would reign for a long time.
The expansion of wind and solar parks in Texas is part of a broader strategic vision. The state government offers tax incentives and promotes infrastructure partnerships, allowing developers to finance local installations in exchange for lease contracts. These policies have led to spectacular development, pushing renewable energies to become the primary source of electricity in 2023, increasing the region’s economic appeal while diversifying its energy resources.
the slowdown in Alberta despite its potential
Alberta, although endowed with abundant renewable energy resources due to its sunlight and winds, is going through a paradoxical phase. Instead of fully embracing this potential, the province has slowed its energy transition. The government imposed a moratorium of seven months on new wind and solar applications in 2022, raising concerns among many industry companies. This decision sharply contrasts with Texas’s enthusiasm for clean energies.
Restrictions imposed by the Alberta government have shaken developers’ confidence and led to the postponement or cancellation of many projects. While Texas invests in a low-carbon future, Alberta seems to hesitate between progress and the preservation of natural landscapes. Observers note that these restrictions could harm the province’s reputation as a safe place for sustainable investments, hindering its energy transition.
a strategic comparison
So, what explains this divergence between Texas and Alberta? Aside from obvious political differences, the answer may lie in how each region handles revenues from the energy industry. In Texas, royalty and lease agreements are made directly between landowners and developers, whether for oil or renewable projects. In contrast, in Alberta, the government collects royalties that significantly feed its public finances. This could explain why Alberta remains attached to fossil fuels, thus slowing its diffusion of renewable energies despite its potential.
