By Olivia Hundley, Bush School INTA Master’s Student
On March 25, 2026, as part of the Conversations in Public Policy series, the Mosbacher Institute hosted an event titled “Powering Texas: Challenges and Opportunities,” featuring Bill Flores, Chair of the Board of Electric Reliability Council of Texas (ERCOT). The discussion was moderated by Dr. Raymond Robertson, Director of the Mosbacher Institute, and focused on the demands and solutions related to Texas’s rapidly evolving energy grid.
Chairman Flores opened with an overview of ERCOT and the structure of Texas’s electricity market, defining key concepts such as dispatchable and intermittent energy resources, grid disturbances, and inverter-based technologies. He emphasized that ERCOT, as the nation’s first independent system operator and the third-largest grid in the United States, plays a critical role in maintaining reliability while managing a rapidly changing energy mix. With peak demand reaching 85 gigawatts and energy consumption growing steadily, Flores highlighted projections that demand could increase by as much as 67 percent over the next five years, equivalent to adding the state of California to the ERCOT grid.
A central theme of Flores’s remarks was the growing complexity of balancing supply and demand in real time. As renewable energy sources expand, ensuring sufficient dispatchable generation—such as natural gas, nuclear, and emerging technologies—remains essential to maintaining grid reliability. He noted that while intermittent resources like wind and solar are increasingly important, they must be paired with reliable backup capacity to prevent shortages. At the same time, uncertainty surrounding large-scale electricity demand, particularly from data centers, presents new planning challenges.
Flores also outlined several recent market innovations designed to enhance grid resilience and flexibility. These include real-time market optimization, expanded battery storage integration, and the development of aggregate distributed energy resources, sometimes referred to as virtual power plants. He pointed to ongoing initiatives such as the Texas 765-kilovolt Strategic Transmission Expansion Plan and the Texas Energy Fund as key components of the state’s long-term strategy to modernize infrastructure and support continued growth.
Looking ahead, Flores stressed that Texas must expand its portfolio of dispatchable energy resources to meet rising demand. He identified nuclear energy, geothermal power, fuel cells, and natural gas as critical areas for future investment, while also highlighting the need for innovative demand-side solutions. Large electricity users, particularly data centers, will play an increasingly important role in grid stability, and Flores emphasized that these “large loads” must act as responsible participants by incorporating on-site generation, demand response strategies, and energy storage capabilities.
In the conversation with Dr. Robertson, Flores discussed the unique advantages of Texas’s independent energy model. By operating largely within its own grid, Texas can move far more efficiently than other regions, enabling faster project approvals and greater flexibility in responding to market changes. This adaptability, he noted, has made Texas an attractive destination for energy-intensive industries, including artificial intelligence and data center development.
The discussion also explored the role of emerging technologies in shaping the future of the grid. Flores expressed optimism about next-generation nuclear energy, describing it as a clean and reliable source of dispatchable power, while acknowledging ongoing challenges related to regulatory frameworks, fuel supply, and waste management. He also highlighted the dual role of artificial intelligence, noting that while AI-driven data centers are contributing to increased electricity demand, AI tools may also offer new solutions for improving grid management and efficiency.
Flores further emphasized the importance of energy security as a component of national security, arguing that reliable access to electricity underpins both economic stability and public well-being. As the grid becomes more complex, he noted, maintaining stability in the face of new types of demand, particularly from sensitive data center operations, will require continued innovation and coordination.
The event concluded with a discussion of future research and workforce needs, specifically how Texas A&M can contribute. Flores underscored the growing demand for electrical engineers and the importance of integrating advanced technologies into grid design and management. He encouraged Bush School students to focus on how public policy intersects, particularly as artificial intelligence introduces new regulatory and operational challenges.
YouTube Link: https://www.youtube.com/watch?v=eZxE7lKlWYQ
