The New Texan
Friday, May 22, 2026

SCORECARD

Austin Energy Leads Texas in Clean Power — and Just Approved $1 Billion in New Gas

The utility is ahead of its own 2027 renewable targets. The City Council approved a gas peaker plant anyway. Five years of data, scored against Austin Energy's own commitments.

File:Decker Creek Power Station.jpg
Photo: Nv8200pa / Wikimedia Commons (CC BY 4.0)
The New Texan staffMay 21, 2026

This scorecard measures Austin Energy's progress toward its carbon-zero-by-2035 goal across five key indicators, from renewable capacity additions to fossil fuel decisions, scored against the utility's own documented targets. The window runs from 2021 through the City Council vote of May 2026. The gas peaker approval this week is the most visible data point, but the trajectory behind it spans multiple budget cycles and resource plan updates.

Progress toward carbon-zero-by-2035 commitment (per indicator) · 2021–May 2026

  1. 1

    Carbon-free generation share (Austin Energy)

    Austin Energy's carbon-free generation share stands at more than 70%, well above ERCOT's 40% average. The utility has added $871.5 million in renewable and battery projects since the December 2024 resource plan passed, surpassing at least one 2027 interim target ahead of schedule.

    70% of portfolio — vs. ERCOT average of 40%
  2. 2

    Renewable and battery capacity added (post-2024 resource plan)

    Since the December 2024 resource plan update, the council has greenlit a landfill solar project and two battery projects totaling 150 megawatts. The broader renewable and battery commitment has reached $871.5 million, exceeding one 2027 milestone.

    $871.5 million committed; 150 MW of solar and battery already approved
  3. 3

    Local dispatchable capacity retired (Decker Creek / Sand Hill era plants)

    Retiring aging carbon-emitting plants eliminated approximately 725 megawatts of local generation capacity — about 45% of Austin's prior local supply. Austin Energy cites this gap as the operational driver behind the peaker proposal.

    725 MW removed — roughly 45% of prior local generation
  4. 4

    New natural gas peaker capacity approved (May 2026 council vote)

    The Austin City Council voted this week to authorize 400 megawatts of new natural gas peaker units, the first new gas generation capacity approved under the 2035 carbon-zero plan. Austin Energy projects the units will be operational by 2030 and will reduce local blackout risk by approximately 90% in its modeling.

    400 MW approved; estimated cost ~$1 billion
  5. 5

    Wind capacity in the May 2026 package

    The same council session that approved the gas peakers also authorized approximately 299 megawatts of new wind power. The wind additions are part of the 2035 resource plan, though a simultaneous federal pause on land-based wind permits — affecting 54 Texas projects — introduces uncertainty about timelines.

    299 MW approved alongside the peaker vote
  6. 6

    Federal wind permit pause (Texas land-based projects)

    The Trump administration paused routine federal permits for 165 land-based wind projects nationally, including 54 in Texas, citing national security concerns. The pause was published the same week as Austin's peaker vote and adds an external constraint not reflected in the December 2024 resource plan's assumptions.

    54 Texas wind projects stalled by Defense Department review
  7. 7

    Battery storage approved (May 2026 package)

    The council approved 100 megawatts of additional battery storage as part of the same package that included the peakers and wind projects. Combined with the 150 megawatts previously authorized, Austin Energy's total approved battery capacity now exceeds 250 megawatts.

    100 MW (in addition to 150 MW already approved)
  8. 8

    Home battery partnership (Base Power program)

    Austin Energy announced a partnership with startup Base Power to place backup batteries in homes across the city, intended to support grid reliability during peak demand. The program's total capacity and deployment timeline have not been publicly specified.

    Residential battery deployment launched; scale not yet disclosed
  9. 9

    Electric Utility Commission endorsement of peaker plan

    The Electric Utility Commission voted 8 to 3 to recommend the peaker units to the City Council. Commission Chair Dave Tuttle described the decision as one of the most difficult he had faced, and at least one commissioner questioned whether Austin Energy's modeling accurately compared peakers to battery alternatives.

    8–3 vote in favor
  10. 10

    2035 carbon-zero target (Austin Energy Resource Plan)

    The December 2024 resource plan update reaffirmed Austin Energy's commitment to carbon-zero generation by 2035. The May 2026 peaker approval is the first authorization of new fossil fuel generation capacity under that plan. Austin Energy frames the peakers as compatible with the 2035 goal; critics argue the multi-decade asset life creates stranded-asset risk as storage costs fall.

    Reaffirmed December 2024; peaker approval is first fossil addition under the plan