NRG submits loan applications to build gas power plants in Texas

Houston-based NRG Energy announced on June 10 that it had submitted the first of three loan applications to the Texas Energy Fund (TEF) to develop three gas-fired power plants with a combined capacity of 1.6 GW within the Electric Reliability Council of Texas. The Public Utility Commission of Texas administers the TEF.

The first application is for a new 721 MW natural gas combined cycle unit at NRG’s Cedar Bayou plant in Baytown, Texas. In the coming weeks, the company plans to submit applications for two quick-start natural gas peaking projects near Houston: a 455 MW project at TH Wharton and a 456 MW unit at Greens Bayou.

NRG anticipates that these three projects will be capable of supplying power to customers in under 30 minutes.

“Texas is projected to have the fastest growing electricity sector of any market in the United States,” said Larry Coben, NRG CEO. “The state expects electricity consumption to grow by 65 GW, or nearly 77% through 2030. NRG urges the advancement of any truly shovel-ready projects to meet the demands of the state’s growing and electrified economy.”

Following approval, NRG plans to begin construction on two of the three facilities as early as October of this year.