Texas Energy Fund Secures Largest Capacity Project to Date with $1.88 Billion Loan Agreement for 1,350 MW Natural Gas Power Plant

Strategic Insights -

Governor Greg Abbott has announced the fifth Texas Energy Fund (TxE) loan agreement for a 1,350 megawatt (MW) natural gas power plant in Ward County, which is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) power region in 2029. This project is the largest capacity project to date, adding 1,350 MW of new, reliable power generation to the state grid and supporting the growing economy of Texas. The Texas Energy Fund has now financed the addition of over 3,100 MW of new, reliable power for the State of Texas, with a total project cost of $1.88 billion and a 20-year loan term.

Key Takeaways:

  • The Texas Energy Fund has secured the largest capacity project to date with a 1,350 MW natural gas power plant in Ward County, expected to begin generating power in 2029.
  • The project is valued at $1.88 billion, with the Public Utility Commission of Texas (PUC) providing a 20-year TxE loan of $1.12 billion (60% of total project cost) at a 3% interest rate.
  • The natural gas generation facility will be built at CPV's Basin Ranch Energy Center in Ward County, with an estimated total project cost of $1.88 billion.
  • The project will add 1,350 MW of new, reliable power generation to the ERCOT grid, with the ability to meet minimum performance standards outlined in the In-ERCOT Generation Loan Program rules.
  • The Texas Energy Fund has now financed the addition of over 3,100 MW of new, reliable power for the State of Texas.
  • The project demonstrates the value and reliability benefits of the TxE fund, with _Competitive Power Ventures_ CEO Sherman Knight stating "We will take every step necessary to ensure affordability and electric reliability for Texas homes and businesses across our great state."
  • The TxE fund has a competitive application process and rigorous financial review of proposed projects, with 12 In-ERCOT Generation Loan Program applications moving through the due diligence review process, representing 5,861 MW of proposed, new dispatchable generation for the ERCOT grid.

Statistics:

  • Total project cost: $1.88 billion
  • Loan amount: $1.12 billion (60% of total project cost)
  • Interest rate: 3%
  • Loan term: 20 years (from Oct. 28, 2025, to Oct. 28, 2045)
  • Proposed generation capacity: 1,350 MW
  • Total capacity of TxE-financed projects: over 3,100 MW
  • Number of In-ERCOT Generation Loan Program applications in due diligence review: 12
  • Proposed generation capacity of In-ERCOT Generation Loan Program projects: 5,861 MW

Sources:

  • Texas Governor's Office
  • Public Utility Commission of Texas (PUC)
  • Competitive Power Ventures (CPV)
  • Global Data Point (2022)
  • SyndiGate Media Inc.