Texas’ plan so as to add extra pure gas-fired energy era capability, supported by cash from a newly created vitality fund, obtained a lift when a number of firms introduced their intention to file functions to construct new amenities below this system.
Vistra on Could 30 stated it plans so as to add as a lot as 2 GW of gas-fired era capability within the state, becoming a member of a number of different builders who’ve stated they’d doubtless ask state regulators for monetary help by way of the Texas Power Fund (TEF). Texas voters in November of final 12 months licensed this system, and lawmakers have appropriated $5 billion for the fund, which by way of its In-ERCOT Technology Mortgage Program will present low-interest loans to finance new building or upgrades to present dispatchable electrical producing amenities inside the Electrical Reliability Council of Texas (ERCOT) area.
There was a Could 31 deadline for tasks to inform officers of their intent to use for loans, and the state’s utility fee stated filings representing greater than 41 GW of recent gas-fired era capability have been recorded. Full functions for venture funding are due July 27.
The Public Utility Fee of Texas (PUCT) on June 1 stated the company had obtained 125 notices of intent to use for a mortgage by way of the In-ERCOT Technology Mortgage Program. The PUCT stated the notices request $38.9 billion in financing for nearly 56 GW of proposed dispatchable energy era tasks throughout ERCOT.
“To make sure dependable, reasonably priced electrical energy for the rising variety of properties and companies in Texas, we’d like extra on-demand, dispatchable energy era,” stated PUCT Chairman Thomas Gleeson. “Seeing such a powerful preliminary response from trade to the In-ERCOT Mortgage Program is an encouraging signal that the Texas Power Fund shall be an efficient instrument and incentivize the funding wanted to deliver extra on-demand energy to the state.”
To be eligible for a mortgage, the venture should add a minimal of 100 MW of recent era to the ERCOT grid. The mortgage could finance as much as 60% of the price of the venture.
“Since Winter Storm Uri in 2021, I’ve been abundantly clear that we should deliver new dispatchable era [primarily new natural gas plants] to Texas to make sure we preserve dependable energy below any circumstance,” stated Texas Lt. Gov. Dan Patrick in a press release on Could 31. “As of this morning, 81 candidates representing over 41 gigawatts of dispatchable energy era tasks have utilized for the aggressive low-interest mortgage program offered by way of the Texas Power Fund [TEF] to maintain up with our rising state. The TEF will present grants and low-interest loans to finance the development, upkeep, modernization, and operation of electrical amenities in Texas. It additionally supplies a completion bonus to expedite the constructing of those vegetation. We want extra pure fuel vegetation within the floor as quickly as we are able to get them.”
Largest Fuel-Fired Initiatives
The most important gas-fired venture unveiled thus far is the FGE Eagles Pines facility, in Cherokee County, a combined-cycle energy plant developed by Austin, Texas-based FGE Energy that when full would characteristic three 1,150-MW models.
GE Vernova and Massachusetts-based Aggressive Energy Ventures (CPV) have stated they plan to construct CPV Basin Ranch, a 1,350-MW gas-fired plant close to Barstow. Different firms with introduced tasks embody ENGIE North America, which has proposed a 483-MW Spenser peaking plant that will initially be fueled with pure fuel, and finally transition to burn hydrogen.
Vistra Power on Could 30 stated it might apply for TEF loans for as a lot as 860 MW of capability from superior simple-cycle peaker vegetation. These amenities can be in-built West Texas “to help the growing energy wants of the area, together with the state’s rising oil and fuel trade,” in keeping with the corporate.
Vistra additionally introduced it might convert the coal-fired Coleto Creek Energy Plant close to Goliad to burn pure fuel. Coleto Creek is scheduled to retire in 2027. The corporate stated the ability can be repowered with pure fuel, with era capability of as a lot as 600 MW.
The corporate additionally stated different tasks at its present gas-fired amenities would add greater than 500 MW of summer time era capability, and 100 MW of winter capability. Vistra stated about half of the brand new capability can be on-line this summer time, with the remainder getting into operation by summer time 2025.
“Vistra is dedicated to offering dependable and reasonably priced electrical energy to our prospects whereas decarbonizing our era fleet at a accountable tempo. Texas is within the enviable place of experiencing sustained financial development, which incorporates quickly growing energy demand because of inhabitants development and electrification actions in various areas, together with transportation, knowledge facilities, manufacturing, and industrial actions,” stated Jim Burke, president and CEO of Vistra. “Texas policymakers are implementing a number of enhancements to our aggressive, energy-only electrical energy market to incentivize building of much-needed dispatchable era, and fuel vegetation are capable of meet that want. Based mostly on these market enhancements, Vistra is happy to announce our funding to deliver roughly 2,000 MW of dispatchable energy era to the ERCOT grid, and we look ahead to being a part of the answer as our trade strives to fulfill the rising energy wants of Texas.”
Vistra, the most important electrical energy generator in Texas, presently operates about 11.3 GW of gas-fired energy vegetation throughout the state.
—Darrell Proctor is a senior affiliate editor for POWER (@POWERmagazine).
