When Texas Freezes Over

The state of Texas has been at the forefront of American media, and for good reason. The blackouts are a function of systematic failure across the entire industry, with a little bit of political propaganda thrown in for good measure. Ted Cruz memes have spread across the internet, and for good reason, as the climate change denying politician jetted off to Cancun while simultaneously spreading outrageous lies, pointing towards the renewables industry as the cause of the blackouts. So what exactly did cause the blackouts?

Winterization of assets has been an afterthought in Texas. This may have made sense 50 years ago when climate and weather were stable and wouldn’t affect energy supply. In 2021, a failure to address the effects of climate change means lives lost.

An energy transition is coming, but it needs to be just and equitable. We cannot simply inject wind and solar and call it a day, scenarios like this winter will be more and more common and need to be taken into account. Policy and governance need to incorporate sustainability and need to address this, instead of pointing fingers (ironically at the technology that aims to address the climate crisis).

What does this mean for businesses? The effects of climate change are real and are affecting existing assets. This means that it is no longer simply the “moral” thing to incorporate into a business plan, but the soundest financial strategy as well. Utilities and electricity suppliers in Texas may very well go bankrupt due to this weather event. Don’t let the same happen to your business.