Houston Daily

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. NRG Energy Inc. will build the facility, which is expected to start providing electricity to the Electric Reliability Council of Texas (ERCOT) power region by 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 noted that, “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.”

NRG Executive Vice President Robert J. Gaudette 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 agreement between PUCT and NRG is part of TxEF’s In-ERCOT Generation Loan Program. The program offers low-interest loans for projects that expand dispatchable power within ERCOT’s service area. For this project, estimated total costs are under $617 million. The PUCT will provide a 20-year loan up to $370 million—about 60% of total costs—at a 3% interest rate.

The new plant will be located at NRG's existing Greens Bayou Generating Station in Harris County and will connect into one of Texas’s highest electricity demand regions: Houston Load Zone, which includes Houston, Pasadena, and The Woodlands.

As part of the loan terms, performance standards must be met as set out by program rules. The TxEF is managed through a competitive application process with detailed financial reviews conducted by PUCT.

In addition to this sixth approved loan agreement under TxEF’s In-ERCOT Generation Loan Program, there are currently 11 other applications under review representing another possible 5,406 megawatts of new dispatchable generation capacity for ERCOT.

Further details about TxEF and its programs can be found on the Public Utility Commission of Texas website.