LCRA began providing electricity for Central Texans in the 1930s, using the renewable water resource of the Colorado River to produce hydroelectric power. Eventually, LCRA created a series of six dams to make that power available for many rural Texans who did not have access to the benefits of urban electric systems. More than 60 years later, LCRA continues its leadership in renewable energy. LCRA operates units at the six dams that can generate up to 281.5 megawatts (MW) of electricity, enough to power the peak demand of more than 60,000 Texas homes.

In 1995, LCRA invested in the first wind power project in Texas — the Texas Wind Power Project in Culberson County. LCRA now purchases 116 MW from three West Texas wind farms, including Delaware Mountain Wind Farm in Culberson County and Indian Mesa Wind Energy Center in Pecos County. Of LCRA's total wind purchases, Austin Energy purchases 10 MW and the rest serves 43 Central Texas utilities.

Today, LCRA gets about 5 percent of its power from renewable energy — a larger portion of its electric system than any other public power utility in Texas.