electricity trends

What’s Driving Electricity Demand in Texas?

Summer electricity peak demand in Texas is expected to grow nearly 80% in the next 10 years, from 85,464 MW in 2023 to a projected 153,230 MW in 2033. And no, electric vehicles aren’t the cause.

According to the Electric Reliability Council of Texas (ERCOT), the entity responsible for managing the Texas grid, the three factors driving electricity demand in Texas are: artificial intelligence, hydrogen electrolysis and cryptocurrency mining.

Read More about What’s Driving Electricity Demand in Texas?

Texas Electric Rates – Market Trends and Price Forecast 2025

Texas electricity rate trends for 2025 show prices similar to 2024. Our Texas electricity rates trend forecast includes key factors driving electricity prices and what types of electricity plans will be popular this year.

Whether you live in Houston, Dallas or another area, the question is always, “Will electricity prices in Texas go down anytime soon?” Don’t bet on it.

Key Takeaways

For 2025, here are 4 key takeaways on Texas electricity rate trends.

  • Texas electricity prices for 2025 will continue at levels seen in 2024. Residential electricity rates will average 15-18¢ per kWh including delivery costs.
  • Longer term contract terms (24 to 36 months) will be the cheapest electricity options.
  • Pricing continues to show seasonality, with the best time to shop for electricity in the spring and fall.
  • Texas commercial electricity rates for 2025 will be in the 7-9¢ per kWh range, plus delivery costs.

Read More about Texas Electric Rates – Market Trends and Price Forecast 2025

Texas Electricity Trends for 2023

Texas electricity trends for 2023 show lower prices than 2022 and more options for short and long term electricity contracts. Other trends in Texas electricity include green energy plans going mainstream, more consumers choosing to add solar panels to their homes, and opportunities to get rewarded for cutting your usage.

This is also the year that market restructuring will occur, as Texas looks to ensure grid reliability. Those changes will drive up future electricity prices beyond 2023.

We’ll review all that and more below. If you’re in a hurry and just want to find your best electricity plan? Jump right to our recommendations to find the best electricity rates.

Read More about Texas Electricity Trends for 2023

We just need your ZIP code

To show you the right plan, please enter your ZIP code below

Please enter a valid Commercial Service Address or ESID to proceed