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NRG Energy wants to develop 1.6 GW of quick-start natural gas generation in ERCOT

June 19, 2024

NRG Energy submitted the first of three loan applications to the Texas Energy Fund (TEF) to develop the previously announced 1,600 MW of new quick-start natural gas power generation in the Electric Reliability Council of Texas (ERCOT). The TEF is administered by the Public Utility Commission of Texas (PUCT).

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

This 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: the 455 MW project at TH Wharton and the 456 MW unit at Greens Bayou.

NRG anticipates that these three projects will be capable of supplying power to customers in under 30 minutes. Completion of these projects is contingent upon timely loan approvals from the PUCT and tax abatements by local authorities.

“Texas is projected to have the fastest growing electricity sector of any market in the United States,” said Larry Coben, NRG Chair, Interim President and CEO. “The state expects electricity consumption to grow by 65 gigawatts, or nearly 77% through 2030. NRG urges advancement of any truly shovel-ready projects to meet the demands of the state’s growing and electrified economy. Our three shovel-ready projects have been in development for five years and are among the select few projects positioned to bring much needed flexible and dispatchable generation to the state this decade.”