Texas is taking another significant step to strengthen its power grid, with Governor Greg Abbott announcing a new Texas Energy Fund loan for a 1,350-megawatt natural gas power plant in Ward County. The project, known as CPV Basin Ranch, will be developed by Competitive Power Ventures and is expected to begin serving the ERCOT region in 2029.
ย This loan marks the fifth award under the Texas Energy Fund and currently stands as the largest power-generation project financed through the program. Once completed, the facility will become one of the largest sources of dispatchable electricity for the ERCOT grid, providing reliable power when demand is high and renewable sources cannot fully meet needs.
State leaders emphasized the importance of expanding dependable generation as Texas continues to experience rapid population and economic growth. With the latest approval, the Texas Energy Fund has now supported more than 3,100 megawatts of new dispatchable power capacity statewide. Twelve additional applications are still under review, representing nearly 6,000 megawatts of potential future generation.
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The Ward County facility carries a total project cost of roughly $1.88 billion. Through the Texas Energy Fundโs In-ERCOT Generation Loan Program, the Public Utility Commission of Texas is issuing a 20-year loan of $1.12 billion at a 3 percent interest rate, covering 60 percent of the projectโs cost. The agreement requires the plant to meet performance benchmarks to ensure reliable contribution to the grid. The natural gas facility will be located at Basin Ranch Energy Center and will connect to the ERCOT West Load Zone. As the project moves forward, state officials continue to underscore the importance of dispatchable energy sourcesโpower that can be delivered on demandโto keep Texas homes, businesses, and industries supplied with electricity during peak use and challenging weather conditions.
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The Texas Energy Fund program remains active with ongoing evaluations of additional projects. Its competitive review process, overseen by the Public Utility Commission, is designed to ensure financial strength, accountability, and real-world power delivery for the stateโs energy future. For more details on the Texas Energy Fund and the loan program, visit the Public Utility Commission of Texas website.
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