NRG Energy has received another loan agreement from the Texas Energy Fund (TxEF). The Texas-based utility plans to use the funding to support construction of a 455-MW natural gas-fired station at the site of the group’s current Greens Bayou Generating Station in Harris County, near Houston.
Texas Gov. Greg Abbott on November 20 said the new power plant is the sixth selected to receive a loan from the fund, which was established in November 2023 after Texas voters approved a constitutional amendment to create it. New generation backed by the fund across those six projects now exceeds more than 3.5 GW, according to the state’s Public Utility Commission. NRG Energy said it expects the new facility will enter commercial operation in 2028.
The new plant at Greens Bayou is NRG’s third project to receive support from the loan fund. Those projects together represent about 1.5 GW of generation capacity, and are receiving up to $1.15 billion in low-interest loans.
Abbott on Thursday said, “Texas leads the nation in energy production, providing nearly one-fourth of the country’s domestically produced energy. 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.”
“The TxEF has now secured over 3,500 MW of safe, reliable, and affordable power for the State of Texas,” Public Utility Commission of Texas (PUCT) Chairman Thomas Gleeson said. “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.”
The Texas Energy Fund’s In-ERCOT Generation Loan Program provides low-interest loans for projects that add new, dispatchable power to the ERCOT region. Officials on Thursday said that under the loan agreement for the new plant, total project costs are estimated to be less than $617 million. The PUCT is providing a 20-year TxEF loan up to $370 million, or 60% of total cost, at a 3% interest rate. The loan term runs from Nov. 20, 2025, through Nov. 20, 2045.
“Texas continues to experience unprecedented growth, and reliable power is essential to keep moving us forward,” said Robert J. Gaudette, NRG executive vice president and president of NRG Business and Wholesale Operations. “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 Gov. Abbott, the Legislature and the PUCT for their leadership in ensuring Texas remains powered for the future.”
NRG said the new gas-fired plant will interconnect in the ERCOT Houston Load Zone, which is one of the largest electricity demand centers in Texas. The area includes the cities of Houston, Pasadena, and The Woodlands.
The new facility must meet minimum performance standards under the loan agreement, as outlined in the program rules. The TxEF is administered by the PUCT through a competitive application process and financial review of proposed projects.
Officials said there are currently 11 applications to the TxEF In-ERCOT Generation Loan Program moving through a due diligence review process, in addition to the six loan agreements already approved. Those applications together represent an additional 5,406 MW of proposed, new dispatchable generation for the ERCOT grid.
—Darrell Proctor is a senior editor for POWER.
