Malinvestment can be defined as “a mistaken investment in [the] wrong lines of production, which inevitably leads to wasted
capital and economic losses, subsequently requiring the reallocation of resources to more productive uses.” Malinvestment can be created by government intervention, which distorts the market and its price mechanism.

Renewable energy has benefited for years—and continues to benefit—at the federal, state, and local levels from government support through important subsidies, creating important distortion and instability in the Texas energy market.