NRG says it won't build new natural gas power plants without low-interest loans

Claire Hao | Source: Houston Chronicle | Posted 06/14/2024

NRG Energy, one of the largest power generation companies in Texas, said it won’t build “shovel-ready” natural gas power plants that could supply at least 400,000 homes unless it knows by September if it will receive $925 million in low-interest loans from a taxpayer-backed fund.

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NRG Energy is hesitant to move forward with building natural gas power plants in Texas unless it secures $925 million in low-interest loans from a taxpayer-backed fund by September. The company has been planning these projects for five years, waiting for favorable electricity prices to make the investment profitable. The proposed plants, which could supply 400,000 homes, require the fund's support to overcome economic hurdles, according to NRG's senior vice president of operations.

The Texas Energy Fund, approved by voters in November, aims to back the construction of gas-fired power plants in ERCOT's grid. NRG has filed the first application for loans to build a 721-megawatt gas power plant and plans to apply for loans for two quick-start plants in the following week. Other generation companies, like Vistra, are also planning new gas-fueled power projects without relying on the fund's support, with concerns arising about the loans' ability to guarantee returns on investment amidst challenges posed by wind and solar energy sources.

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Source Link: https://www.houstonchronicle.com/business/energy/article/nrg-plan-to-build-power-plants-loans-19509175.php

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NRG says it won't build new natural gas power plants without low-interest loans

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