Energy/Oil Exploration

NRG Energy Secures $216M Texas Loan for New Houston Gas Power Units

NRG Energy has received a multimillion-dollar state loan to construct two natural gas units at its TH Wharton Power Plant in Northwest Houston. The units, designed to generate 456 megawatts of power, are expected to come online next summer and serve the Electric Reliability Council of Texas’ (ERCOT) Houston load zone.

The loan, provided through the Texas Energy  Fund via the Public Utility Commission of Texas (PUCT), will cover up to $216 million, 60% of the project’s cost, at a 3% interest rate over 20 years. As part of the agreement, the new units must meet minimum performance standards.

NRG said the additional power will support growing electricity demand driven by artificial intelligence data centers and future residential developments.

“Demand for electricity across Texas is surging, and we're working quickly to supply new dispatchable natural gas generation to the grid,” said Robert J. Gaudette, NRG’s executive vice president and president of NRG Business and Wholesale Operations.

He added the project will provide jobs, enhance grid stability, and spur economic growth.

PUCT Chairman Thomas Gleeson highlighted the project’s role in strengthening Texas’ power supply.

“The Texas Energy Fund is accomplishing exactly what the governor and the Texas Legislature envisioned, securing reliable, on-demand power to fuel Texas' rapid growth and continued success,” Gleeson said.

Lawmakers established the Texas Energy Fund during the 2023 legislative session following the deadly 2021 winter storm that killed more than 210 Texans. The legislation reflects a shift toward natural gas–fueled electricity to increase grid reliability.

NRG’s loan is one of two Texas Energy Fund agreements, and together they will add 578 megawatts of power to the ERCOT grid.

Raeylee Barefield

Raeylee Barefield is a student at the University of Texas at Austin pursuing a degree in Government. She enjoys reading, writing, and cooking in her spare time.

Recent Posts

Mayra Flores Launches 2026 Comeback Bid with Strong Polling and GOP Endorsements

Former Congresswoman Mayra Flores (R) has officially announced her campaign to reclaim Texas’ 34th Congressional…

8 hours ago

New Republican Polling Memo Breathes Life Into Cornyn Campaign

A GOP polling memo shows that incumbent Senator John Cornyn (R) has gained traction in…

13 hours ago

Paxton Chides Austin Judge Over Homeless Shelter Next to School

Attorney General Ken Paxton (R) has shared scathing remarks against Travis County District Court Judge…

13 hours ago

Texas Energy Fund Awards $240M to Boost Power Grid Resilience Outside ERCOT

The Public Utility Commission of Texas (PUCT) has selected the first four projects under the…

14 hours ago

Abbott Seeks to Roll Back Same-Day Address Update Voting Measure

Governor Greg Abbott (R) called on state lawmakers to block a new voter registration provision…

14 hours ago

Governor Abbott Signs Trio of Bills to Block Foreign Adversary Influence in Texas

Governor Greg Abbott (R) has signed House Bill 128, Senate Bill 17, and Senate Bill…

14 hours ago