Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan agreement to support the construction of a 455 megawatt natural gas power plant in the Houston area. The project will be led by NRG Energy Inc. and is expected to begin generating electricity for the Electric Reliability Council of Texas (ERCOT) region in 2028.
“Texas leads the nation in energy production, providing nearly one-fourth of the country’s domestically produced energy,” Governor Greg Abbott said. “This 455 MW investment by NRG in Harris County will add more power to Texas’ energy infrastructure and the fifth largest metropolitan area in America. This new power plant will ensure every Texas home has affordable, reliable power for decades to come.”
Public Utility Commission of Texas (PUCT) Chairman Thomas Gleeson commented on the broader impact of the fund: “The TxEF has now secured over 3,500 MW of safe, reliable, and affordable power for the State of Texas. 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.”
Robert J. Gaudette, Executive Vice President and President of NRG Business and Wholesale Operations, stated: “Texas continues to experience unprecedented growth, and reliable power is essential to keep moving us forward. Our investment at Greens Bayou reflects NRG’s commitment to delivering dependable, dispatchable generation when Texans need it most. These units will strengthen grid resilience, create local jobs and support economic vitality. We appreciate Governor Abbott, the Legislature and the PUCT for their leadership in ensuring Texas remains powered for the future.”
The loan agreement between PUCT and NRG is part of TxEF’s In-ERCOT Generation Loan Program. This program offers low-interest loans aimed at increasing dispatchable electricity capacity within ERCOT’s service area. For this project, total costs are estimated at under $617 million; PUCT will provide up to $370 million—60% of total costs—through a 20-year loan at a 3% interest rate.
The facility will be built at NRG’s existing Greens Bayou Generating Station in Harris County and connect into ERCOT’s Houston Load Zone, which serves major demand centers including Houston, Pasadena, and The Woodlands.
As stipulated by program rules, facilities funded through TxEF must meet certain performance standards. The fund is managed by PUCT using a competitive application process with thorough financial review.
In addition to this sixth finalized loan agreement under TxEF’s In-ERCOT Generation Loan Program, there are currently eleven other applications under review that could add another 5,406 MW of dispatchable generation capacity if approved.
More details about TxEF and its programs can be found on the Public Utility Commission of Texas website.
