NRG Energy brings new gas power plant to Houston with $216 million embattled Texas Energy Fund loan

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NRG Energy Inc. is set to establish a new natural gas power plant in Houston, supported by a $216 million loan from the Texas Energy Fund, marking the largest loan approved to enhance grid reliability. The loan will finance up to 60% of the project's costs at a 3% interest rate over 20 years, with operations expected to commence by next summer. This facility will be developed from the existing TH Wharton Generating Station and aims to supply electricity to the ERCOT Houston Load Zone, which includes Houston, Pasadena, and The Woodlands.

The Texas Energy Fund was initiated in 2023 to encourage the construction of gas-fired power plants following a devastating winter storm that led to significant blackouts. However, the program has faced challenges, with several companies withdrawing their projects due to financial and logistical issues. Despite these setbacks, NRG Energy has two additional projects under consideration for funding, which, if approved, could collectively provide approximately 1.5 gigawatts of power to Texas by 2028, enough to power over 1.5 million homes annually.