Texas power producers are proposing a surge in new gas plants, aided by $5 billion in state-funded, low-interest loans to support generation of the fuel.
Companies have filed more than 150 notices with state regulators saying they intend to build new gas plants under the Texas Energy Fund, according to data released by the state’s Public Utility Commission (PUCT) after a deadline last Friday. In total, the notices requested $38.9 billion in financing for nearly 56,000 megawatts of proposed new power generation.
If that much power came online, it would roughly double the state’s gas generation. The Electric Reliability Council of Texas (ERCOT) grid — which handles about 90 percent of the state’s power demand — currently has just under 53,000 megawatts of gas plant capacity. One megawatt can power about 250 homes during peak demand, according to ERCOT.
The notices of intent are preliminary and not all of the projects will get loans or be built, but they signal the intense level of interest in the growing Texas electricity market. Developers must file a formal application by July 27 to be considered for a state-backed, low-interest loan.
