Texas Governor Greg Abbott on Nov. 20 announced the sixth Texas Energy Fund (TxEF) loan agreement for a 455 megawatt (MW) natural gas power plant in the Houston area. NRG Energy Inc. (NRG) will build the plant, which is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) power region in 2028.
“The TxEF has now secured over 3,500 MW of safe, reliable, and affordable power for the State of Texas,” Public Utility Commission of Texas (PUCT) Chairman Thomas Gleeson said. “Texans wisely recognized the need to prepare our grid for the future when they voted to create the TxEF in 2023, and the fund is delivering on that promise.”
The loan agreement between the PUCT and NRG is the sixth finalized 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 less than $617 million. The PUCT is providing a 20-year TxEF loan up to $370 million, or 60% of total cost, at a 3% interest rate. The loan term runs from Nov. 20, 2025, through Nov. 20, 2045.
NRG will build the facility at its existing Greens Bayou Generating Station in Harris County. The project will interconnect in the ERCOT Houston Load Zone, one of the largest electricity demand centers in Texas, including Houston, Pasadena, and The Woodlands. This area makes up the fifth largest metropolitan area in the United States.
Under the loan agreement, the facility must meet minimum performance standards, as outlined in program rules. The TxEF is administered by the PUCT through a competitive application process and rigorous financial review of proposed projects.
In addition to the six loan agreements already approved, there are currently 11 applications to the TxEF In-ERCOT Generation Loan Program moving through a due diligence review process. Together, they represent an additional 5,406 MW of proposed, new dispatchable generation for the ERCOT grid.
