Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan agreement to support the construction of a 455 megawatt (MW) natural gas power plant in the Houston area. The project will be developed by NRG Energy Inc. and is expected to begin generating electricity for the Electric Reliability Council of Texas (ERCOT) region in 2028.
Governor Abbott stated, “Texas leads the nation in energy production, providing nearly one-fourth of the country’s domestically produced energy. 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 commented on the broader impact of the fund: “The TxEF has now secured over 3,500 MW of safe, reliable, and affordable power for the State of Texas. 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.”
Robert J. Gaudette, Executive Vice President and President of NRG Business and Wholesale Operations, said, “Texas continues to experience unprecedented growth, and reliable power is essential to keep moving us forward. 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 agreement between PUCT and NRG marks the sixth finalized loan under TxEF’s In-ERCOT Generation Loan Program. The program offers low-interest loans for projects that add new dispatchable capacity within ERCOT’s service area. For this project, total costs are estimated at less than $617 million; PUCT will provide a 20-year loan up to $370 million—covering up to 60% of total costs—at an interest rate of 3%. The loan term extends from November 20, 2025 through November 20, 2045.
NRG plans to build this facility at its existing Greens Bayou Generating Station located in Harris County. The site will connect into ERCOT’s Houston Load Zone—a major electricity demand center that includes Houston as well as surrounding areas such as Pasadena and The Woodlands.
The facility must meet minimum performance standards according to program rules. Administration of TxEF falls under PUCT through a competitive application process with detailed financial review requirements.
In addition to these six approved loans, there are currently eleven more applications undergoing due diligence review under TxEF’s In-ERCOT Generation Loan Program; together these proposals could add another 5,406 MW of new dispatchable generation capacity within ERCOT.
More information about TxEF and its programs can be found on the Public Utility Commission of Texas website.
