Governor Greg Abbott announced the approval of the eighth loan agreement under the Texas Energy Fund (TxEF), greenlighting an infrastructure project designed to bring 860 megawatts (MW) of new, reliable dispatchable power to West Texas. Financed through the fund’s competitive In-ERCOT Generation Loan Program, the state initiative provides low-interest financing for building out Texas’ long-term energy generation capabilities.
According to a June 24 press release, the new construction project will generate enough electricity to comfortably power approximately 215,000 Texas homes. Governor Abbott highlighted the scope of the state’s investment, asserting, “As the national leader in energy, Texas remains steadfast to deliver reliable power to families and businesses across our state. 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.”
Energy provider Vistra has been selected to construct the expansion, which consists of building two new natural gas units at its existing Permian Basin Power Plant in Ward County. By anchoring the new natural gas units at a proven facility, the developer can efficiently maximize preexisting regional transmission lines and utility infrastructure to add dispatchable electricity directly into the state power grid.
The planned expansion will more than triple the current generation capacity of the Ward County site, with both advanced units projected to complete construction and begin generating electricity for the Electric Reliability Council of Texas (ERCOT) power region in 2028.
Jim Burke, President and CEO of Vistra, expressed gratitude to state leadership, noting that reliable power is entirely foundational to Texas’ continued growth and that building upon a proven, established location makes the most efficient use of resources to support the state’s expanding industrial and consumer energy demands.
PUCT Chairman Thomas Gleeson emphasized that the TxEF is proving to be a highly effective tool for ensuring the state’s electric grid expands in parallel with its booming population and industrial footprint, maintaining that providing reliable, affordable electricity remains the primary directive of state utility regulators.
Following the finalization of the Vistra agreement, the PUCT confirmed that five additional applications under the In-ERCOT Generation Loan Program are currently moving through active due diligence and financial review, collectively representing an additional 2,356 MW of proposed new generation moving toward final approval.