Governor Greg Abbott has announced a new Texas Energy Fund (TxEF) loan agreement for the construction of a 1,350 megawatt (MW) natural gas power plant in Ward County. The project will be developed by Competitive Power Ventures (CPV) Basin Ranch and is scheduled to begin supplying electricity to the Electric Reliability Council of Texas (ERCOT) region in 2029.
“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,” said Governor Abbott. “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.”
Public Utility Commission of Texas (PUC) Chairman Thomas Gleeson noted that TxEF financing has now contributed to more than 3,100 MW of new power generation in 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,” Gleeson said.
Sherman Knight, CEO of Competitive Power Ventures, expressed gratitude for state support. “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,” Knight said. “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 planned facility represents TxEF’s largest financed project so far and will become one of ERCOT’s major sources of dispatchable electricity once operational.
The $1.88 billion project will receive a 20-year TxEF loan from the PUC totaling $1.12 billion—about 60% of total costs—at an interest rate of 3%. The loan period extends from October 28, 2025 through October 28, 2045.
The CPV Basin Ranch Energy Center will be located in Ward County within ERCOT’s West Load Zone. The plant must meet performance standards as required by In-ERCOT Generation Loan Program rules.
The TxEF operates under PUC oversight with competitive applications and financial reviews for all proposed projects.
Currently, there are twelve other applications under review within this loan program representing nearly 5,900 MW in potential new dispatchable power capacity for ERCOT.
More information about TxEF and its programs can be found on the Public Utility Commission’s website.
