Governor Abbott Announces Texas Energy Fund Loan to 1,350 MW West Texas Natural Gas Power Plant

Strategic Insights -

Governor Greg Abbott has announced the fifth Texas Energy Fund (TEF) loan agreement for a 1,350 megawatt (MW) natural gas power plant in Ward County, Texas. The plant, built by Competitive Power Ventures (CPV) Basin Ranch, is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) power region in 2029. This investment is the largest capacity project financed by the TEF to date, adding 1,350 MW of new, reliable power generation to the state grid.

Key Takeaways:

  • The Texas Energy Fund has secured its largest capacity project to date, with 1,350 MW of new power generation coming online in 2029.
  • The power plant will be built by Competitive Power Ventures (CPV) Basin Ranch in Ward County, Texas, and will add to the Electric Reliability Council of Texas (ERCOT) power region.
  • The loan agreement is the fifth under the TEF's In-ERCOT Generation Loan Program, which provides low-interest loans for projects adding new, dispatchable power to the ERCOT region.
  • The loan term runs from October 28, 2025, through October 28, 2045, at a 3% interest rate.
  • The total project cost is estimated to be $1.88 billion, with the Public Utility Commission of Texas (PUC) providing a 20-year TEF loan of $1.12 billion (60% of the total project cost).
  • The natural gas generation facility will be built at CPV's Basin Ranch Energy Center in Ward County and will interconnect in the ERCOT West Load Zone.
  • The project must meet minimum performance standards, as outlined in the In-ERCOT Generation Loan Program rules.
  • The TEF is administered through a competitive application process and rigorous financial review of proposed projects.
  • Other TEF In-ERCOT Generation Loan Program applications represent 5,861 MW of proposed new dispatchable generation for the ERCOT grid.
  • Governor Abbott stated that the Texas Energy Fund has financed over 3,100 MW of new, reliable power for the State of Texas.
  • CPV CEO Sherman Knight thanked Governor Abbott, his administration, the Texas Legislature, the PUC, and Ward County for their continued support of the CPV Basin Ranch Energy Center.

Statistics:

  • The power plant will have a capacity of 1,350 MW, the largest capacity project financed by the TEF to date.
  • The loan agreement is the fifth under the TEF's In-ERCOT Generation Loan Program.
  • The total project cost is estimated to be $1.88 billion.
  • The PUC is providing a 20-year TEF loan of $1.12 billion (60% of the total project cost) at a 3% interest rate.
  • The loan term runs from October 28, 2025, through October 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.

Sources:

  • Governor Abbott's office
  • Public Utility Commission of Texas (PUC)
  • Competitive Power Ventures (CPV)
  • Electric Reliability Council of Texas (ERCOT)
  • Texas Energy Fund (TEF)