Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan agreement for the construction of a 1,350 megawatt (MW) natural gas power plant in Ward County. The facility will be developed by Competitive Power Ventures (CPV) Basin Ranch and is scheduled to start generating electricity for the Electric Reliability Council of Texas (ERCOT) region in 2029.
In a statement, Governor Abbott said, “The Texas Energy Fund secured the largest capacity project to date, with 1,350 MW of new, reliable power generation coming online that will further fortify our state grid and support our growing economy for decades. As one of the largest sources of dispatchable power generation for the grid, this investment is just the latest example of why Texas is the energy capital of the world. We will take every step necessary to ensure affordability and electric reliability for Texas homes and businesses across our great state.”
Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson noted that more than 3,100 MW of new reliable power have been financed through TxEF so far. “There is important work still ahead, but this newest commitment to invest in Texas is a clear demonstration of the value and reliability benefits the TxEF is bringing to bear,” he said.
Sherman Knight, CEO of Competitive Power Ventures, expressed gratitude for support from state officials and local authorities: “We thank Governor Greg Abbott, his administration, the Texas Legislature, the PUC, and Ward County for their continued support of the CPV Basin Ranch Energy Center that will provide critical baseload power to the citizens of Texas. Through incentives and available natural resources, Texas is paving the way for new investments and development across the state; CPV looks forward to playing a role in that future.”
This facility represents the largest capacity project funded by TxEF so far. Once operational and connected to ERCOT’s West Load Zone at CPV’s Basin Ranch Energy Center site in Ward County, it will become one of ERCOT’s major sources for dispatchable electricity generation.
The agreement between PUC and CPV marks TxEF’s fifth loan under its In-ERCOT Generation Loan Program. This program offers low-interest loans to projects adding dispatchable energy supply within ERCOT’s territory. For this project—estimated at $1.88 billion—the PUC will provide a 20-year loan totaling $1.12 billion at an interest rate of 3%. The loan period extends from October 28, 2025 through October 28, 2045.
To receive funding under this agreement, CPV must meet minimum performance standards set out by program rules. The TxEF operates through competitive applications and financial reviews overseen by PUC.
Currently there are twelve additional applications under review within this program which together propose an extra 5,861 MW in potential dispatchable generation capacity for ERCOT.
More details about both TxEF and its In-ERCOT Generation Loan Program can be found on the Public Utility Commission’s website.
