Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan agreement to support the construction of a 1,350 megawatt (MW) natural gas power plant in Ward County. The facility, known as CPV Basin Ranch and developed by Competitive Power Ventures (CPV), is scheduled to begin supplying electricity to the Electric Reliability Council of Texas (ERCOT) grid in 2029.
Governor Abbott said, “The Texas Energy Fund secured the largest capacity project to date, with 1,350 MW of new, reliable power generation coming online that will further fortify our state grid and support our growing economy for decades. As one of the largest sources of dispatchable power generation for the grid, this investment is just the latest example of why Texas is the energy capital of the world. We will take every step necessary to ensure affordability and electric reliability for Texas homes and businesses across our great state.”
According to Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson, “The Texas Energy Fund has now financed the addition of over 3,100 MW of new, reliable power for the State of Texas. There is important work still ahead, but this newest commitment to invest in Texas is a clear demonstration of the value and reliability benefits the TxEF is bringing to bear.”
Sherman Knight, CEO of Competitive Power Ventures, stated: “We thank Governor Greg Abbott, his administration, the Texas Legislature, the PUC, and Ward County for their continued support of the CPV Basin Ranch Energy Center that will provide critical baseload power to the citizens of Texas. Through incentives and available natural resources, Texas is paving the way for new investments and development across the state; CPV looks forward to playing a role in that future.”
The $1.88 billion project will receive a 20-year TxEF loan from PUC totaling $1.12 billion at an interest rate of 3%. This represents about 60% of total project costs. The loan term runs from October 28, 2025 through October 28, 2045.
This project marks TxEF’s fifth loan under its In-ERCOT Generation Loan Program. Once operational and connected in ERCOT’s West Load Zone at CPV’s Basin Ranch Energy Center location in Ward County, it will become one of ERCOT’s largest sources for dispatchable electricity.
To qualify for funding under this program administered by PUC via a competitive application process and financial review system, facilities must meet specific performance standards set out by program rules.
Currently there are twelve additional applications moving through due diligence review under TxEF’s In-ERCOT Generation Loan Program. Collectively these projects could add nearly 5,861 MW in new dispatchable generation capacity for ERCOT.
Further details about TxEF and its programs can be found on the PUC website.
