The Public Utility Commission of Texas will review the extension of $5.38 billion worth of low-interest loans to companies planning nearly 10 gigawatts (GW) of new natural gas-fired capacity in a bid to boost generation capacity for ERCOT.
The Texas regulator said that it had selected a total of 17 projects of proposed new dispatchable power generation and a total requested loan amount of $5.38 billion under the so-called In-ERCOT Generation Loan program of the Texas Energy Fund. These projects will now advance to the due diligence stage, the Commission said.
Projects by NRG Energy, NextEra, Constellation Energy, Engie, and Vistra have all advanced in the review process.
The Texas Energy Fund was established in 2023 by the Texas Legislature through Senate Bill 2627, the Powering Texas Forward Act, to provide grants and loans to finance the construction, maintenance, modernization, and operation of electric facilities in Texas.
The Texas Energy Fund provides funding opportunities for electric generation projects through four programs based on an application process and award system developed by the Public Utility Commission of Texas (PUCT).
In the latest application process for the In-ERCOT Generation Loan program, PUCT received during the application period in July a total of 72 applications seeking more than $24 billion in funding for projects representing over 38,000 megawatts of proposed new dispatchable generation.
Commenting on the selected projects, PUCT Chairman Thomas Gleeson said,
"This is an enormous step forward in our on-going work to meet the fast-growing demand for electricity in our state".
"Each application was closely analyzed, and the projects selected to advance will have the greatest impact in meeting the needs of the ERCOT grid and ensure long-term electric reliability in Texas," Gleeson added.
Texas used a record amount of electricity on August 20, the Electric Reliability Council said last week.
Earlier in the year, ERCOT forecast that electricity demand in the Lone Star State could double in six years, necessitating the urgent addition of more generation capacity.
By Charles Kennedy for Oilprice.com
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