Renewable energy investments amplify manufacturing opportunities in Odessa

Odessa, Texas, is quickly becoming a national hub for renewable energy. Manufacturers of products, parts and systems utilized in solar and wind power generation benefit from access to a built-in customer base. Simultaneously, rail and interstate arteries create new opportunities to meet the nation’s renewable energy needs.

According to the U.S. Energy Information Administration (EIA), Texas generated approximately 13% of national electricity from renewable sources in 2023. Odessa, situated in the Permian Basin, is a top contributor. As investments in renewable energy increase nationwide, establishing a manufacturing base in the production capital creates new opportunities for expansion and collaboration.

Production dominance drives demand for components

Amplifying energy delivery with renewables

Texas's long-time position topping American energy production has deep roots in oil and gas, bolstered by the Permian Basin as the largest single source of oil and gas deposits in the U.S. While oil and gas will continue to provide energy security and fuel the economy, renewable energy has found a home in the same region. In 2023, Texas topped the country in electrical generation powered by wind and was second in solar power production, per EIA data.

A September 2022 analysis published in Texas CEO Magazine estimated the Permian Basin contributed 12.3% of Texas's wind capacity and is home to a significant portion of the state’s solar capacity. The stats are climbing as new wind and solar farms are constructed, amplifying the demand for local manufacturing and suppliers in Odessa.

Geographic proximity creates growth opportunities

Obtaining proximity to new construction and established renewable energy farms requiring maintenance and upgrades makes sense for renewable energy manufacturers and adjacent industries. While a built-in customer base exists in the immediate area, Odessa’s access to major east-west rail and interstates simplifies nationwide distribution, creating a path to further growth for manufacturers supplying renewable energy equipment, such as wind turbine parts or solar panels.

According to Wind Power Monthly, a 10-year study by the German Wind Energy Measurement Programme revealed wind turbines required “emergency” service an average of 7 times in 10 years. Proactive maintenance also creates component demands. In 2023, the Texas Comptroller reported 15,300 wind turbines in use in Texas. As these turbines, new turbines, and solar equipment age, the maintenance demands present incredible opportunities for manufacturers supplying maintenance companies and technicians with parts.

Permian Basin weather conditions are perfect for renewable energy

The semi-arid desert of the Permian Basin around Odessa is ideal for expanding wind and solar energy and hosting storage facilities. Steady wind and an average of 300 sunny days each year ensure a consistent supply. Available land and ready incentives also make the location perfect for storing energy in large-scale battery farms. 

Business-friendly community incentivizes relocation

Relocating renewable energy manufacturers will find a welcoming community in Odessa, with local and state relocation incentives available. Odessa Development Corporation can assist with the funding stack for qualifying businesses through grant and tax incentive programs focused on growing jobs and capital investment in the city. 

Workforce energy expertise transitions to renewables

Odessa is home to skilled workers ready to embrace new careers in renewable energy manufacturing. Due to Odessa’s history in oil and gas, the workforce has an existing skillset ready to support energy growth from production jobs to administrative and management positions. Local technical colleges are also highly responsive to industry demands and adapt based on workforce opportunities, ensuring a talent pipeline exists for immediate and future needs.

To grow with the renewable energy market in Odessa, Texas, contact Odessa Development Corporation today. And check out our manufacturing industry video here!