Texas Governor Greg Abbott announced the securing of a loan through the Texas Energy Fund to bolster the state’s power infrastructure. A 456 megawatt natural gas power plant, spearheaded by NRG Energy Inc., is set to join the Houston skyline, operational by the summer of 2026. Serving the power-hungry Electric Reliability Council of Texas (ERCOT) region, the plant aims to satisfy the growing electricity demands of the Greater Houston area. “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,” Abbott stated in a press release issued by the Governor’s Office.
According to the Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson, the investment aligns with what the Governor and Texas Legislature envisioned—strengthening on-demand power to fuel Texas’ growth and success. Fueling the state’s economic and energy growth, Houston, part of one of the largest demand centers in Texas, will serve as its focal point. “The development of our new units at TH Wharton is already providing significant construction jobs, and once online next year will provide additional permanent jobs, enhanced grid stability, and regional economic growth,” NRG’s Robert J. Gaudette said, as mentioned in the same press release.
The financial details outline a loan from the PUC amounting to $216 million or 60% of the total project costs, which are estimated at less than $360 million. This 20-year generous TEF loan will have a low 3% interest rate, starting from July 31, 2025, through July 30, 2045. NRG’s TH Wharton Generating Station, an existing facility in Houston, is getting a revamp with this new addition. Once its construction is completed—anticipated for the summer of 2026—it will play an integral role in interconnecting within the ERCOT Houston Load Zone, servicing burgeoning cities including Houston, Pasadena, and The Woodlands…