Texas Gov. Greg Abbott announced a $216 million state loan to fund a 456-megawatt natural gas power plant in Houston.
The facility, built by NRG Energy Inc., aims to begin operations by summer 2026.
The loan marks the second agreement under the Texas Energy Fund, a program designed to boost the state’s power grid amid surging electricity demand. Texas faces growing energy needs as population and business expansion strain existing infrastructure.
“Texas is the top energy producer in the nation — fueling growth and innovation across our state and around the world,” said Abbott. “This 456 megawatt investment in the Texas grid will help bear the load of the largest electricity demand area in the state, further ensuring reliable and affordable power for countless homes and businesses in the greater Houston area.”
The Public Utility Commission of Texas will provide the 20-year loan at 3% interest, covering 60% of the project’s estimated $360 million cost. NRG will develop the facility at its existing TH Wharton Generating Station.
“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,” said PUC Chairman Thomas Gleeson.
The project will connect to ERCOT’s Houston Load Zone, serving the nation’s fifth-largest metropolitan area. This region includes Houston, Pasadena, and The Woodlands.
Construction has already created jobs, with permanent positions expected once the plant is operational. The facility must meet minimum performance standards outlined in program rules.
“The development of our new units at TH Wharton is already providing significant construction jobs, and once online next year will provide additional permanent jobs, enhanced grid stability, and regional economic growth,” said Robert J. Gaudette, NRG’s Executive Vice President.
Fifteen additional applications remain under review for the loan program. Together, they represent 8,392 megawatts of proposed new power generation for the Texas grid.