By: Franyi Sarmiento, Ph.D., Inspenet, June 13, 2022
Shell announced this week that it will begin selling electricity generated from renewable sources to Texas residents and businesses, a move that brings the European oil company’s shift toward green power to the US market.
The new US retail brand, called Shell Energy Solutions, builds on Shell’s 2017 acquisition of MP2 Energy, a commercial and residential energy retailer with some 33,000 customers.
Shell’s aim is to lure customers with plans that include free charging for electric vehicles during off-peak hours and credit for excess solar energy owners export to the grid.
The announcement underscores the growing gap between the strategies of European and US oil companies, as leaders and consumers demand that the energy industry do more to address climate change.
Texas, whose electrical grid is largely isolated from the rest of the country to avoid certain federal regulations, is the largest producer of energy and the largest consumer in the United States.
European companies such as Shell, BP and TotalEnergies are trying to expand into renewables, EV charging and other fast-growing businesses, while US companies such as Exxon Mobil and Chevron remain focused on oil. and gas, while investing in carbon capture from industrial plants and biofuels.
The company has stated that it aims to achieve net zero greenhouse gas emissions by 2050. Although many companies have the same goal, Exxon and Chevron have not set equally ambitious climate goals.
Shell, which already has electricity businesses in nine countries, plans to double the amount of electricity it sells by 2030. The company is Europe’s largest oil and gas business by revenue and has operations in more than 70 countries, including fuel stations, refineries and oil and gas fields.
Shell executives said their new energy business in Texas will offer customers greater access to wind and solar power that is increasingly abundant in the state. It will also give EV drivers free charging at night, when electricity demand is low, and on weekends.
“Our goal is to reduce our carbon intensity,” said Glenn Wright, vice president of renewable energy and energy solutions for Shell in the Americas. “We have to take tangible steps, especially in this space, where we can engage customers with cleaner and renewable energy solutions.”
Shell said it would eventually expand its retail electricity business to other parts of the United States, including eastern and southern states that are part of the PJM power market, the country’s largest regional transmission system.
The utility said starting in Texas made sense because more than 26 million of the state’s nearly 29 million residents were served by a single network operated by the Texas Electric Reliability Board.
This material from the EnergiaBolivia Portal was edited for clarity, style and length.
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