24/7 Wall St. Insights

• To mitigate the effects of climate change, the Biden Administration is aiming to make the U.S. power grid emissions free by 2035.
• However, state governments have broad discretion over their energy policy, while some are prioritizing emissions reduction, others remain heavily dependent on fossil fuels. 
• Currently, Texas stands out as a leader in clean energy production, but remains a heavy polluter.
• Also: 2 Dividend Legends to Hold Forever

The United States is one of the heaviest polluters in the world, and electric power generation is one of America’s heaviest polluting sectors. According to the Environmental Protection Agency, the U.S. emitted over 6.3 billion metric tons of harmful greenhouse gasses in 2022, more than every other country except China — and 25% of those emissions were created by electricity production.

With climate change emerging as a leading global threat, many countries are taking action to reduce emissions. In the United States, President Joe Biden set a goal of achieving an emissions-free power grid by 2035 — largely by cutting U.S. dependence on dirty power sources, like coal, and increasing our reliance on clean, renewable sources. (Here is a look at 11 American companies on the cutting edge of renewable technology.)

In the continuation of a longer term trend, the amount of electricity produced in coal-fired power plants has fallen by over 57% in the United States over the last 10 years, from 1.6 billion megawatt-hours in 2014 to 675.1 million megawatt-hours in 2023. Over the same period, electricity production from wind and solar farms nearly tripled, from 199.3 million megawatt-hours to 586.7 megawatt-hours. The shift has had a meaningful impact, as emissions from electric power generation have fallen by nearly 24% in the U.S. since 2014, according to the U.S. Energy Information Administration.

The federal government has a long way to go to achieve its ambitious energy goals, and doing so will require the cooperation of states. Every state has its own climate, geography, and natural resources — as well as broad authority over energy policy — and some states are doing far more to reduce the climate impact of their power grid than others. (Here is a look at the states where carbon emissions are skyrocketing.)

Among the 50 states, Texas stands out as both the heaviest polluter, as well as the state producing the most energy from clean sources. Nationwide, coal accounts for only about 16% of electricity production and over half of all harmful gas emissions from the electric power sector. Meanwhile, clean energy sources, like wind and solar, account for nearly 20% of electricity production with virtually no harmful gas emissions.

Texas generated 71.6 million megawatt-hours of electricity with coal-fired power plants in 2023, more than any other state. However, through wind farms, and to a lesser-degree, solar power, Texas generated 148.8 million megawatt-hours of electricity, or about 27% of its total power production in 2023, from clean, renewable sources.

Still, Texas’ use of coal plants and reliance on natural gas generated over 213.9 million metric tons of harmful gas emissions in 2022, over 116 million more metric tons than Florida, the state with the second dirtiest power grid.

This is how Texas generates electricity — and how much pollution its power grid produces. Electricity output is measured in megawatt-hours and harmful gas emissions are measured in metric tons. For context, a single megawatt-hour is enough to power an average American home for just over a month, and a metric ton is equal to about 2,205 pounds. All data is from the EIA.

Why It Matters

Electricity production is one of the heaviest polluting sectors in the United States. As demand for electricity continues to rise, much of the country is transitioning away from fossil fuels and toward clean and renewable energy sources to meet the Biden Administration’s climate change mitigation goals. Texas produces more electricity from clean, renewable sources than any other state. However, through its continued dependence on fossil-fuels like coal and natural gas, Texas’ power grid also pollutes more than that of any other state.

Coal

• Net-electricity production in 2023: 71.6 million megawatt-hours
• Coal as share of Texas’ power grid: 13.09% of net-electricity production
• Harmful gas emissions from coal in 2022: 90.4 million metric-tons of nitric oxide, nitrogen dioxide, carbon dioxide, and sulfur dioxide
• Coal as share of harmful gas emissions from electricity production in Texas: 42.25%
• Texas’ coal infrastructure in 2023: 28 generators, 13 facilities

Hydroelectric

• Net-electricity production in 2023: 758,033 megawatt-hours
• Hydroelectric as share of Texas’ power grid: 0.14% of net-electricity production
• Harmful gas emissions from hydroelectric in 2022: None
• Hydroelectric as share of harmful gas emissions from electricity production in Texas: 0%
• Texas’ hydroelectric infrastructure in 2023: 47 generators, 24 facilities

Natural gas

• Net-electricity production in 2023: 282.2 million megawatt-hours
• Natural gas as share of Texas’ power grid: 51.56% of net-electricity production
• Harmful gas emissions from natural gas in 2022: 123.1 million metric-tons of nitric oxide, nitrogen dioxide, carbon dioxide, and sulfur dioxide
• Natural gas as share of harmful gas emissions from electricity production in Texas: 57.53%
• Texas’ natural gas infrastructure in 2023: 1196 generators, 298 facilities

Nuclear

• Net-electricity production in 2023: 40.7 million megawatt-hours
• Nuclear energy as share of Texas’ power grid: 7.43% of net-electricity production
• Harmful gas emissions from nuclear energy in 2022: None
• Nuclear energy as share of harmful gas emissions from electricity production in Texas: 0%
• Texas’ nuclear energy infrastructure in 2023: 4 generators, 2 facilities

Petroleum

• Net-electricity production in 2023: 235,069 megawatt-hours
• Petroleum as share of Texas’ power grid: 0.04% of net-electricity production
• Harmful gas emissions from petroleum in 2022: 443,710 metric-tons of nitric oxide, nitrogen dioxide, carbon dioxide, and sulfur dioxide
• Petroleum as share of harmful gas emissions from electricity production in Texas: 0.21%
• Texas’ petroleum infrastructure in 2023: 309 generators, 36 facilities

Pumped storage

• Net-electricity production in 2023: None
• Pumped storage as share of Texas’ power grid: 0% of net-electricity production
• Harmful gas emissions from pumped storage in 2022: None
• Pumped storage as share of harmful gas emissions from electricity production in Texas: 0%
• Texas’ pumped storage infrastructure in 2023: None

Solar (thermal and photovoltaic)

• Net-electricity production in 2023: 28.1 million megawatt-hours
• Solar as share of Texas’ power grid: 5.14% of net-electricity production
• Harmful gas emissions from solar in 2022: None
• Solar as share of harmful gas emissions from electricity production in Texas: 0%
• Texas’ solar infrastructure in 2023: 151 generators, 145 facilities

Wind

• Net-electricity production in 2023: 119.9 million megawatt-hours
• Wind as share of Texas’ power grid: 21.90% of net-electricity production
• Harmful gas emissions from wind in 2022: None
• Wind as share of harmful gas emissions from electricity production in Texas: 0%
• Texas’ wind infrastructure in 2023: 229 generators, 215 facilities

Wood and wood derived fuels

• Net-electricity production in 2023: 1.1 million megawatt-hours
• Wood fuels as share of Texas’ power grid: 0.20% of net-electricity production
• Harmful gas emissions from wood fuels in 2022: 11,069 metric-tons of nitric oxide, nitrogen dioxide, carbon dioxide, and sulfur dioxide
• Wood fuels as share of harmful gas emissions from electricity production in Texas: 0.01%
• Texas’ wood fuels infrastructure in 2023: 9 generators, 6 facilities

Other biomass (incl. agricultural byproducts, landfill gas, and sludge waste)

• Net-electricity production in 2023: 177,484 megawatt-hours
• Other biomass as share of Texas’ power grid: 0.03% of net-electricity production
• Harmful gas emissions from other biomass in 2022: 2,877 metric-tons of nitric oxide, nitrogen dioxide, carbon dioxide, and sulfur dioxide
• Other biomass as share of harmful gas emissions from electricity production in Texas: 0%
• Texas’ other biomass infrastructure in 2023: 22 generators, 8 facilities

Other gasses (incl. propane, blast furnace gas, and waste gas from fossil fuels)

• Net-electricity production in 2023: 2.3 million megawatt-hours
• Other gasses as share of Texas’ power grid: 0.43% of net-electricity production
• Harmful gas emissions from other gasses in 2022: 2,244 metric-tons of nitric oxide, nitrogen dioxide, carbon dioxide, and sulfur dioxide
• Other gasses as share of harmful gas emissions from electricity production in Texas: 0%
• Texas’ other gasses infrastructure in 2023: 8 generators, 5 facilities

Other (incl. municipal solid waste, batteries, chemicals, and hydrogen)

• Net-electricity production in 2023: 235,501 megawatt-hours
• All other sources as share of Texas’ power grid: 0.04% of net-electricity production
• Harmful gas emissions from all other sources in 2022: 9,723 metric-tons of nitric oxide, nitrogen dioxide, carbon dioxide, and sulfur dioxide
• All other sources as share of harmful gas emissions from electricity production in Texas: 0%
• Texas’ all other sources infrastructure in 2023: 101 generators, 95 facilities

All sources

• Net-electricity production in 2023: 547.3 million megawatt-hours
• Harmful gas emissions from all sources in 2022: 213.9 million metric-tons of nitric oxide, nitrogen dioxide, carbon dioxide, and sulfur dioxide
• Texas’ all sources infrastructure in 2023: 2,104 generators, 821 facilities

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