NRG will seek $900 million in loans to build new gas-fired power plants

AI generated summary

The interim CEO of NRG Energy Inc. in Texas revealed plans to seek up to $900 million in loans from the state to finance the construction of new natural gas-fired power plants. Larry Coben, who took over the position in November 2023 following the departure of Mauricio Gutierrez, outlined that the funds would cover 60% of the costs for two plants scheduled for 2026 and another facility for 2028. The financing, sourced from the $5 billion Texas Energy Fund and featuring a 3% interest rate, aims to bolster the state's power grid.

As a response to the strain on Texas' power infrastructure caused by recent extreme weather incidents, which has led to a push for additional gas-fired plants despite the state's leadership in renewable energy capacity, NRG is proactively gearing up for the upcoming projects. Coben stated that equipment for the new plants has already been procured in readiness for the loans' anticipated approval in the second quarter. NRG's initiative is among the pioneering efforts tapping into the Texas Energy Fund for essential energy investments.