Texas officials gave the green light to the first new natural gas plant to be built through a state-backed low-interest loan program, a milestone in the state government’s attempt to build more fossil fuel infrastructure.
The Texas Public Utilities Commission approved funding for the Rock Island Generation Project located about 80 miles west of Houston. The 122-megawatt power plant will generate enough electricity to power about 30,500 homes on the Electric Reliability Council of Texas (ERCOT) grid and will sit adjacent to the Houston load zone, one of the state’s largest demand centers.
Funding for the plant comes through the Texas Energy Fund, a $10 billion program designed to incentivize developers to build new sources of dispatchable power at a time when renewable energy is flooding the market. The state is awarding a 20-year loan of up to $105 million at a 3 percent interest rate to the Kerrville Public Utility Board to build the Rock Island project. The project is scheduled to begin operations by 2027.
“The goal of the Texas Energy Fund has always been clear: secure reliable, affordable power that will serve the state for decades to come,” Thomas Gleeson, chair of the Texas PUC, said in a statement. “Today, we achieved a major milestone in that effort and are one step closer to bringing new power online. This new facility will benefit every Texan by helping us ensure continued electric reliability and support Texas’ incredible economic growth.”
