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, led by NRG Energy Inc., is expected to start supplying electricity to 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 highlighted that the TxEF has now secured over 3,500 MW of additional capacity for the state’s grid. “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,” Gleeson stated.
Robert J. Gaudette, Executive Vice President and President of NRG Business and Wholesale Operations, commented on the importance of reliable energy as Texas continues to grow: “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 marks the sixth finalized under TxEF’s In-ERCOT Generation Loan Program. This program provides low-interest loans aimed at increasing dispatchable power resources within ERCOT’s jurisdiction. For this project, total costs are estimated below $617 million; PUCT is offering a 20-year loan up to $370 million—about 60% of total costs—at a fixed interest rate of 3%. The facility will be located at NRG’s existing Greens Bayou Generating Station in Harris County and will connect into one of Texas’ largest demand centers.
To receive funding through TxEF programs like this one, projects must meet performance standards set by program rules and undergo competitive application processes with financial reviews overseen by PUCT.
Currently, beyond these six approved loans, there are eleven more applications under review which could contribute an additional combined capacity exceeding 5,400 MW if approved.
More information about TxEF and its In-ERCOT Generation Loan Program can be found on the Public Utility Commission of Texas website.
