Texas Governor Greg Abbott on Oct. 30 announced the fifth Texas Energy Fund (TxEF) loan agreement for a 1,350 megawatt (MW) natural gas power plant in Ward County, Texas.
Competitive Power Ventures (CPV) Basin Ranch will build the plant, which is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) power region in 2029.
“The Texas Energy Fund secured the largest capacity project to date, with 1,350 MW of new, reliable power generation coming online that will further fortify our state grid and support our growing economy for decades,” said Abbott. “As one of the largest sources of dispatchable power generation for the grid, this investment is just the latest example of why Texas is the energy capital of the world. We will take every step necessary to ensure affordability and electric reliability for Texas homes and businesses across our great state.”
“The Texas Energy Fund has now financed the addition of over 3,100 MW of new, reliable power for the State of Texas,” said Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson. “There is important work still ahead, but this newest commitment to invest in Texas is a clear demonstration of the value and reliability benefits the TxEF is bringing to bear.”
At 1,350 MW, the facility has the largest capacity of any project financed by the TxEF to date. Once connected, the CPV project will become one of the largest sources of dispatchable generation capacity for the ERCOT grid.
The loan agreement between the PUC and CPV is the fifth under the TxEF’s In-ERCOT Generation Loan Program, which provides low-interest loans for projects that add new, dispatchable power to the ERCOT region.
Under the loan agreement, total project costs are estimated to be $1.88 billion. The PUC is providing a 20-year TxEF loan of $1.12 billion, or 60% of the total project cost, at a 3% interest rate. The loan term runs from Oct. 28, 2025, through Oct. 28, 2045.
The natural gas generation facility will be built at CPV’s Basin Ranch Energy Center in Ward County. The project will interconnect in the ERCOT West Load Zone.
Under the loan agreement, the facility must meet minimum performance standards, as outlined in the In-ERCOT Generation Loan Program rules.
The Kerrville Public Utility Board, a Texas public power utility, made history with the first project to execute a loan agreement under the Texas Energy Fund, following a ceremonial signing held June 25 with leadership from the Public Utility Commission of Texas in Austin, Texas. Alongside the TEF loan agreement, KPUB finalized the issuance of tax-exempt revenue bonds, completing the utility’s full financing strategy for its generation project.
The TxEF is administered by the PUC through a competitive application process and rigorous financial review of proposed projects.
There are 12 TxEF In-ERCOT Generation Loan Program applications moving through a due diligence review process. Together, the projects represent 5,861 MW of proposed, new dispatchable generation for the ERCOT grid.
