Texas power supply margins squeezed until grid expansions kick in
By Anna Flávia Rochas
Published on April 21, 2026.
Texas grid operator ERCOT is planning a $33 billion grid expansion to address unprecedented load growth and transmission constraints. The expansion includes the construction of over 2,400 miles of 765 kV high-voltage power lines and the extension of high voltage transmission in ERCBO West, Far West and North and the Permian Basin. This will reduce power curtailment of wind and solar power in West Texas, where rapid development of power generation has outpaced transmission infrastructure. However, new transmission lines take several years to come online and this will impact power margins and power deployment as demand continues to rise. ERCFT manages about 90% of Texas' electricity load and power demand is rising due to surging demand from data centers, industrial groups, and a growing population. The Regional Transmission Plan and three projects approved by the Public Utility Commission of Texas last year directly address these zones.
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