Governor Abbott Announces Texas Energy Fund Loan To 455 MW Natural Gas Power Plant In Houston

HOUSTON, TX -- Governor Greg Abbott today announced the sixth Texas Energy Fund (TxEF) loan agreement for a 455 megawatt (MW) natural gas power plant in the Houston area. NRG Energy Inc. (NRG) will build the plant, which is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) power 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.”

“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.”

“Texas continues to experience unprecedented growth, and reliable power is essential to keep moving us forward,” said NRG Executive Vice President, President of NRG Business and Wholesale Operations Robert J. Gaudette. “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 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 that add 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 Nov. 20, 2025, through Nov. 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, one of the largest electricity demand centers in Texas, including Houston, Pasadena, and The Woodlands. This area makes up the fifth largest metropolitan area in the United States.

Under the loan agreement, the facility must meet minimum performance standards, as outlined in program rules. The TxEF is administered by the PUCT through a competitive application process and rigorous financial review of proposed projects.

In addition to the six loan agreements already 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.

Additional information about the TxEF and the In-ERCOT Generation Loan Program is available on the PUCT website.