Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan agreement to support the construction of a 1,350 megawatt (MW) natural gas power plant in Ward County. The project, led by Competitive Power Ventures (CPV) Basin Ranch, is expected to begin supplying electricity to the Electric Reliability Council of Texas (ERCOT) 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 Governor 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.”
Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson noted that the TxEF has now financed more than 3,100 MW of new power for Texas. “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,” Gleeson said.
Competitive Power Ventures CEO Sherman Knight expressed appreciation for state leaders’ support: “We thank Governor Greg Abbott, his administration, the Texas Legislature, the PUC, and Ward County for their continued support of the CPV Basin Ranch Energy Center that will provide critical baseload power to the citizens of Texas. Through incentives and available natural resources, Texas is paving the way for new investments and development across the state; CPV looks forward to playing a role in that future.”
The planned facility represents the largest capacity project funded by TxEF so far. Once operational, it will be among ERCOT’s biggest sources of dispatchable electricity.
The agreement between PUC and CPV marks the fifth loan under TxEF’s In-ERCOT Generation Loan Program. This program offers low-interest loans for projects adding new dispatchable power within ERCOT’s territory. The total estimated cost for this project is $1.88 billion. Of this amount, $1.12 billion—about 60%—will come from a 20-year TxEF loan at a 3% interest rate. The loan term extends from October 28, 2025 through October 28, 2045.
The CPV Basin Ranch Energy Center will interconnect with ERCOT’s West Load Zone once built in Ward County. The facility must meet minimum performance standards as specified by program rules.
The TxEF operates under PUC oversight using a competitive application process and thorough financial reviews before approving projects.
Currently, there are twelve additional applications moving through due diligence under this program. Together these proposals could add up to 5,861 MW of new dispatchable generation capacity for ERCOT.
More details about TxEF and its programs can be found on the Public Utility Commission website.
