Nuclear energy is emerging as a key issue in the Texas Legislature this year, with Sen. Tan Parker introducing a bill aimed at boosting the state’s nuclear energy capacity. SB 1105 would establish the Texas Advanced Nuclear Innovation Fund to subsidize research and investment in nuclear energy technologies.
“Texas must lead the way in securing a reliable, long-term energy future, and advanced nuclear technology is a critical part of that vision,” Parker wrote on LinkedIn.
Parker’s legislation is part of an ongoing effort by the Texas government to address the reliability issues caused by the increase of intermittent energy on the grid. Wind and solar generation, the leading sources of intermittent energy, have grown significantly on the Texas grid in recent years.
Nationally, wind and solar account for only 18% of the electricity generated. In Texas, however, they make up 34% and are projected to account for 98.2% of new generation on the Texas grid over the next five years.
In 2023, the Texas Legislature created the Texas Energy Fund, designed to provide subsidies for new natural gas generation in an effort to increase the availability of dispatchable, reliable generation on the grid.
The Legislature set aside $5 billion for the fund and may allocate another $5 billion this year.
Parker believes his legislation will help make the grid more reliable. In addition to the Innovation Fund, the bill would create the Texas Advanced Nuclear Energy Authority and a Nuclear Permitting Office to assist in “cutting red tape, fostering innovation, and expanding our energy capabilities.”
Bill Peacock, policy director for the Energy Alliance, believes subsidies for nuclear and natural gas generation will not solve the reliability problem the Texas grid faces.
“Subsidies for wind and solar are the reason they are overwhelming the Texas grid,” Peacock said. “Texas can’t out-subsidize the federal government. If we want to improve reliability, we have to stop all subsidies and start making renewables pay for the harm they are causing in Texas.”
The push for nuclear subsidies began last year with a report from the Public Utility Commission of Texas. The report included recommendations for many provisions in Parker’s bill. In the report, former PUC Commissioner Jimmy Glotfelty wrote that “Texas is well-poised to become the national, if not global, leader in using advanced nuclear energy technologies.”
