Renewable Energy Potential in Texas and Business Opportunities for the Netherlands
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Renewable energy potential in Texas and business opportunities for the Netherlands Commissioned by the ministry of Foreign Affairs 2016-2017 Renewable energy potential in Texas and business opportunities for the Netherlands Elène Lenders Wageningen University Environmental Economics and Natural Resources Group, Wageningen, The Netherlands The Netherlands Business Support Office, Houston, Texas, United States of America September 2016 – February 2017 Content 1. Introduction ........................................................................................................................................... 4 1.1. Research Question ........................................................................................................................ 4 1.2. Method .......................................................................................................................................... 4 1.3. Definition of renewable energy ..................................................................................................... 5 1.4. Units .............................................................................................................................................. 5 2. The current market situation for energy in Texas ................................................................................. 6 2.1. An independent electricity grid ..................................................................................................... 6 2.2. The main fuel types supplied ........................................................................................................ 7 3. Renewable energy in Texas ................................................................................................................... 8 3.1. Location of renewable energy resources in Texas ........................................................................ 9 3.2. Governmental measures for renewable energy in Texas ........................................................... 10 3.3. Dealing with energy storage and grid reliability ......................................................................... 11 3.4. Transmission challenges .............................................................................................................. 12 3.5. Smart grid .................................................................................................................................... 13 4. The wind energy sector ....................................................................................................................... 14 4.1. Wind power resources and capacity ........................................................................................... 14 4.2. Current state of wind development ............................................................................................ 14 4.3. Business opportunities in wind ................................................................................................... 16 4.4. Off-shore wind ............................................................................................................................. 17 4.5. Conclusion ................................................................................................................................... 17 5. Solar Energy ......................................................................................................................................... 18 5.1. Solar resources and capacity ....................................................................................................... 18 5.2. Current state of solar development ............................................................................................ 19 5.3. Business opportunities in solar ................................................................................................... 21 5.4. Conclusion ................................................................................................................................... 21 6. Biomass................................................................................................................................................ 22 6.1. Biomass resources and capacity .................................................................................................. 22 6.2. Current state of biomass development ....................................................................................... 23 6.3. Business opportunities in biomass .............................................................................................. 24 6.4. Conclusion ................................................................................................................................... 24 7. Water energy ....................................................................................................................................... 25 1 7.1. Conventional hydropower and pumped storage ........................................................................ 25 7.2. Ocean Power ............................................................................................................................... 26 7.3. Salinity gradient power ............................................................................................................... 26 7.4. Conclusion ................................................................................................................................... 27 8. Geothermal energy ............................................................................................................................. 27 8.1. Geothermal resources and capacity ............................................................................................ 27 8.2. The current state of geothermal development ........................................................................... 29 8.3. Business opportunities in geothermal ........................................................................................ 29 8.4. Conclusion ................................................................................................................................... 30 9. Nuclear energy .................................................................................................................................... 30 9.1. Nuclear resources and capacity .................................................................................................. 30 9.2. Current state of nuclear development ........................................................................................ 31 9.3. Business opportunities in nuclear ............................................................................................... 31 9.4. Conclusion ................................................................................................................................... 32 10. The Dutch energy market ................................................................................................................ 32 10.1. A liberalized energy market..................................................................................................... 32 10.2. The current renewable energy situation in the Netherlands .................................................. 33 11. Differences between the energy markets ....................................................................................... 34 11.1. The laissez-faire versus government regulation ..................................................................... 35 11.2. Entering the market ................................................................................................................ 35 12. Resource specialization ................................................................................................................... 37 12.1. Size matters ............................................................................................................................. 38 12.2. Country specific conditions ..................................................................................................... 38 13. Implications for business opportunities .......................................................................................... 39 13.1. Get to know the market .......................................................................................................... 40 13.2. Concerns about economic and political developments .......................................................... 41 13.3. Engage in municipal collaborations and partnerships ............................................................ 42 13.4. Exchange in resource specialization ........................................................................................ 42 13.5. The market demand for energy reliability............................................................................... 44 14. Management summary ................................................................................................................... 46 14.1. SWOT table .............................................................................................................................. 48 15. Conclusion ....................................................................................................................................... 51 2 16. Acknowledgements ......................................................................................................................... 52 17. Abbreviations .................................................................................................................................