Texas Gov. Greg Abbott announced Wednesday that a new Texas Energy Fund loan has been finalized to support the construction of an 860-megawatt natural gas power project in West Texas, a development expected to supply electricity to approximately 215,000 homes.
The project will be built by Vistra in Ward County and will add two new natural gas-fired generating units at the company’s Permian Basin Power Plant. State officials said the expansion will more than triple the facility’s current generating capacity.
“As the national leader in energy, Texas remains steadfast to deliver reliable power to fa
milies and businesses across our state,” Abbott said in a statement. “This new 860-MW project will strengthen grid reliability in West Texas, support economic growth in the Permian Basin, and help ensure Texans have the power they need for years to come.”
Project Expected Online In 2028
According to state officials, the new generating units are expected to begin supplying electricity to the Electric Reliability Council of Texas (ERCOT) grid in 2028.
The loan agreement marks the eighth project approved under the Texas Energy Fund’s In-ERCOT Generation Loan Program, which provides low-interest financing for projects that add dispatchable, reliable power generation within the ERCOT region.
Public Utility Commission of Texas Chairman Thomas Gleeson said the project will help meet the state’s growing electricity demands.
“Texas is growing, and the TxEF is ensuring our electric grid grows with it,” Gleeson said. “This project will bring a significant amount of new, reliable power online and help meet the needs of Texas homes and businesses. Ensuring continued reliable, affordable electricity is always our top priority.”
Expansion Targets Growing Energy Demand
Vistra President and CEO Jim Burke said the company has invested in generation assets across Texas for decades and views the Permian Basin expansion as a way to support continued economic growth.
“Reliable power is foundational to Texas’ continued growth, and for decades, Vistra has been investing in and growing our generation fleet to help meet rising demand,” Burke said.
He added that the project will build on existing infrastructure at the site, allowing the company to efficiently expand generating capacity while supporting the state’s increasing energy needs.
Additional Projects Under Review
State officials said five additional applications are currently being considered through the Texas Energy Fund’s In-ERCOT Generation Loan Program.
Together, those proposed projects represent another 2,356 megawatts of potential new generating capacity for the ERCOT grid.
The Texas Energy Fund was created to help expand reliable power generation and strengthen grid reliability as Texas continues to experience rapid population growth and increased electricity demand.
If completed as planned, the Ward County project will become one of the latest additions to the state’s growing portfolio of dispatchable power resources designed to support homes, businesses, and industrial operations across Texas.
