Governor Greg Abbott announced on Monday, that a Texas Energy Fund loan will support the construction of a 456-megawatt natural gas power plant in Houston. Built by NRG Energy Inc., the plant is scheduled to begin operations by Summer 2026 to provide power to homes and businesses in the Houston area, according to the Office of the Texas Governor.
Texas Governor Greg Abbott announced a 20-year Texas Enterprise Fund loan of up to $216 million at a 3% interest rate to support NRG’s 456-megawatt power project in Houston, covering 60% of the project’s estimated $360 million cost. Abbott said, “Texas is the top energy producer in the nation—fueling growth and innovation across our state and around the world,” and, “This 456 megawatt investment in the Texas grid will help bear the load of the largest electricity demand area in the state, further ensuring reliable and affordable power for countless homes and businesses in the greater Houston area.” NRG Executive Vice President Robert J. Gaudette said the project will create construction jobs and permanent jobs once operational, as reported by the Office of the Texas Governor.
NRG plans to build a new natural gas facility at the TH Wharton Generating Station within the Electric Reliability Council of Texas Houston Load Zone. The project is part of the PUC’s Texas Energy Fund In-Electric Reliability Council of Texas Generation Loan Program, which supports new power generation in Texas. The facility must meet minimum performance standards. The PUC currently has 15 applications under review, proposing 8,392 MW of additional dispatchable generation for the Electric Reliability Council of Texas grid, as stated by the Office of the Texas Governor.
