Governor Greg Abbott (R) has announced the fifth Texas Energy Fund Loan Agreement, supporting the construction of a 1,350-megawatt natural gas power plant in Ward County by Competitive Power Ventures (CPV).
The project, known as CPV Basin Ranch, is expected to begin generating power for the Electric Reliability Council of Texas (ERCOT) grid in 2029.
"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," said Abbott. "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."
At 1,350 MW, the Ward County facility marks the largest capacity project to be financed by the Texas Energy Fund so far. The facility will add significant dispatchable power generation, which will strengthen grid reliability and meet Texas' growing energy demand.
The Public Utility Commission of Texas (PUC) will provide a 20-year loan of $1.12 billion, which covers 60% of the total cost that falls at $1.88 billion, with a 3% interest rate.
"The Texas Energy Fund has now financed the addition of over 3,100 MW of new, reliable power for the State of Texas," said PUC Chairman Thomas Gleeson. "There is important work still ahead, but this is the newest commitment to invest in Texas is a clear demonstration of the value and reliability benefits the TxEF is bringing to bear."
CVP CEO Sherman Knight expressed gratitude for state and local support, stating, "We thank Governor Greg Abbott, his administration, the Texas Legislature, the PUC, and Ward County for their continued support of the CVP Basin Ranch Energy Center that will provide critical baseload power to the citizens of Texas."
The CVP Basin Ranch Energy Center will be located in the ERCO West Load Zone, delivering baseload, dispatchable generation critical for maintaining grid stability.
The Project must meet the minimum performance standards established in the In-ERCOT Generation Loan Program, which the PUC administers through a competitive application and financial review process.
