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Austin Energy says it is 65% carbon-free, outlines 2035 goals and RFP timeline
Summary
In a semiannual update, Austin Energy reported 65% carbon-free generation as a share of load, set local solar goals (205 MW by 2027; 405 MW by 2035), described a 9.9 MW geothermal pilot and a 100 MW 4-hour battery contract, and said the all-resource RFP proposals are due late January with anticipated council recommendations by May.
Austin Energy presented a semiannual update on its Resource Generation and Climate Protection Plan to 2035 at the oversight committee meeting on Jan. 20.
Chief Operating Officer Lisa Martin said the utility is "currently sitting at 65%" carbon-free generation as a percentage of load and reported preliminary 2025 data showing historically low total stack emissions (under 2.5). The presentation noted guardrails based on a 2021–2023 three-year average and explained a small uptick in local carbon intensity largely reflected lower local generation and outages at the Sandhill combined cycle plant in 2025.
Martin summarized four priority actions from the 2035 plan: prioritize customer energy solutions, develop local solutions (solar, batteries, distributed resources), renew decarbonization commitments (including PPAs) and advance a culture of innovation (R&D, pilots). She said fiscal year 2025 delivered 18 MW of new local solar and 24 MW of energy-efficiency savings; the utility signed a 20-year contract for a 100 MW, 4-hour battery system and launched an all-resource RFP.
Martin gave local-solar targets embedded in the plan: 205 MW by 2027 and 405 MW by 2035 (details available in backup material). She described the geothermal pilot as a 9.9 MW project that moved to South Texas during feasibility work and said the program aims to test viability and potential scale-up.
On timing, Martin said proposals for the all-resource RFP are due in late January, analysis is expected to take two to three months, and the earliest council recommendation could come in May. She told the committee that staff do not anticipate bringing a peaker recommendation forward until the all-resource RFP results are complete.
Council members pressed staff on several risks identified in the update: federal policy shifts (expiration of certain tax credits and withdrawn grants), large customer loads affecting demand forecasts, and heightened legislative requirements for inspections and wildfire plans. Martin said those risks have been added to the register and that mitigation actions are underway.
The presentation closed with a 2026 implementation list that includes expanded demand-response programs, community engagement in February–April and predevelopment work on utility-scale projects.
