A review of the changing electricity generation to renewable energy and the accelerating adoption of advanced energy technology in three phases, Disruptive Technology Effect, Network Effect, and Artificial Intelligence Effect. Thus, Texas will have cleaner, cheaper energy in the future.

1. The Future of Utility-Scale
Renewable Energy in Texas:
Cheaper, Cleaner Energy
Scott D. Deatherage
S Deatherage Law, PLLC
Clean Energy Counsel, LLC
scott@sdeatheragelaw.com
214-256-0979
Texas Energy Summit – CATEE 2017
Plano, TX
November 14, 2017

2. History of the Electricity Grid and Utilities

3. Energy Revolution: But DC Circuit Court of Appeals
Stayed EPA Clean Power Plan Rule; Trump Elected
and Pledged to Bring Back Coal? What Happened?

4. Texas' Largest Power Generator Speeds Up Coal's
Decline With Closure Of Two More Plants
• “The cost to generate electricity from coal plants varies from $60 to
$143 per megawatt hour, compared to $48 to $78 for natural gas,
according to a report last year from financial advisory firm Lazard.
The unsubsidized cost for wind was $32 to $62.”
• The Dallas Morning News, Oct. 13, 2017
• https://www.dallasnews.com/business/energy/2017/10/13/texas-
largest-power-generator-speeds-coals-decline-closure-two-plants

5. Acceleration of Advanced Energy
Technology Occurring in Three Phases
• Energy savings, financial
benefit drives adoption
• Emergence of
environmental benefit
• Green Invisible Hand

6. First Phase: Disruptive Technology Effect
• Combined cycle natural gas
• Solar
• Wind
• LED lighting
• Energy storage
• Wind-Solar-Storage Hybrid
• New business and financing
models

7. Second Phase: Network Effect
• Energy Internet of Things
• Cloud-based monitoring
and control
• Virtual energy reductions
beyond physical
installation

8. Third Phase: Artificial Intelligence Effect
• Artificial intelligence or deep
learning and blockchain
applied to operations and
energy
• Discovery of energy
reductions people could
never find
• Blockchain and AI-enabled
trading at customer level with
grid and other customers

10. US Wind Price and Cumulative Wind Capacity

11. US Solar PV Prices and Cumulative Capacity

13. ERCOT Study of Impact of Clean Power Plan on
Texas: Breakdown of Generation by 2030

14. 0 50 100 150 200 250
Solar PV--Rooftop residential
Solar PV--Rooftop C&I
Solar PV--Community
Solar PV--Utility-scale…
Wind
Coal
Gas combined cycle
Gas peaking
Comparison of “Unsubsidized” Levelized Costs
Source::: Lazard’s Levelized Costs of Energy, Version 10.0

15. Top Ten States for Installed Capacity of Wind
Energy Second Quarter 2017 (MW)
- 5,000 10,000 15,000 20,000 25,000
Texas
Iowa
Oklahoma
California
Kansas
Illinois
Minnesota
Oregon
Washington
Colorado
Source: American Wind Energy Association

16. Top Ten States for Installed Capacity of Solar
Energy in First Quarter 2017 (MW)
- 5,000 10,000 15,000 20,000 25,000
California
North Carolina
Arizona
Nevada
New Jersey
Massachusetts
Texas
Utah
Georgia
New York
Source: Solar Energy Industries Association

17. 2016 Generation In Texas By Type (gWh)
- 50,000 100,000 150,000 200,000
Natural Gas
Coal
Wind
Nuclear
Water
Solar
Other
Source: ERCOT

18. 0
5,000
10,000
15,000
20,000
25,000
Installed Wind Capacity In Texas
Source: American Wind Energy Association

19. 0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016
Growth in Installed Solar PV Capacity
in Texas 2009 – 2016 (MW)
Residential Non-residential Utility

20. Texas Public Policy on Renewable Generation
• Historically, Better
• More Recently, Worse
• No further extension of Renewable Energy Portfolio Standard
• Threats
• Using False Claims That Wind Turbines Interfered with Flights from Military Bases to
Create “No Turbine Areas,” as a Way to Discourage Wind Energy (Going on in Other
States with Koch Brothers’ Support)
• Attempts to Charge More Fees to Renewables for Line Losses from Transmission from
West Texas
• ERCOT Rules on Dispatch
• Renewables Dispatched First, No Fuel Variable Cost, and Low Price (Wind,
Solar Soon)
• Natural Gas Dispatched Second, Because of Low Price
• Coal Dispatched Last
• Contributing to Coal Plant Closures

21. Declining Demand for Coal-Generated Power

22. California “Duck Curve”

23. ERCOT Predicts Grid of the Future: From
Centralized to Digitized, Distributed

24. Future: Disruptive, Distributed, Democratized
Based on Blockchain and Artificial Intelligence

25. 22,000- 23,000 Texas Jobs In Wind Energy (2016)
[Source: American Wind Energy Association

26. 9,400 Texas Jobs in Solar Energy (2016)

27. Conclusion
•Billions of Dollars of Investment in Transition
of Centralized to Democratized, Distributed
Energy
•Advanced Energy Technology Will
Outperform in the Energy Market
•No Variable Costs/Financial Hedge
•Cleaner: Non-Polluting, Low Carbon
•Networked/Blockchain and Artificial Intelligence
•Cheaper
•Future? Cheaper, Cleaner Energy in Texas

28. Scott D. Deatherage
S Deatherage Law, PLLC
325 N. St.Paul St., Suite 3400
Dallas, Texas 75201
Office: 214-983-1218
Mobile: 214-356-0979
Scott@sdeatheragelaw.com
Clean Energy Counsel
www.cleanenergycounsel.com
Adjunct Professor, University of Texas Law School, Climate Change
Law
Carbon Trading Law and Practice, published by Oxford University
Press, 2011