Governor of Texas Announces Sixth Texas Energy Fund Loan Agreement for 455 MW Natural Gas Power Plant in Houston
Governor of Texas, Greg Abbott has announced the sixth Texas Energy Fund (TxEF) loan agreement for a 455 MW natural gas power plant in the Houston area.
NRG Energy (NRG) will build the plant, which is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) power region in 2028.
“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,” said Abbott. “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 loan agreement between the PUCT and NRG is the sixth finalized under the TxEF’s In-ERCOT Generation Loan Program, which provides low-interest loans for projects adding new, dispatchable power to the ERCOT region. Under the loan agreement, 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 November 20, 2025, through November 20, 2045.
NRG will build the facility at its existing Greens Bayou Generating Station in Harris County. The project will interconnect in the ERCOT Houston Load Zone, an electricity demand center in Texas, including Houston, Pasadena, and The Woodlands. Under the loan agreement, the facility is expected to meet minimum performance standards, as outlined in program rules.
In addition to the six loan agreements approved, there are currently 11 applications to the TxEF In-ERCOT Generation Loan Program moving through a due diligence review process. Together, they represent an additional 5,406 MW of proposed, new dispatchable generation for the ERCOT grid.