NRG Targeting $900 Million From Texas for New Gas Plants

NRG Energy Inc. plans to apply for as much as $900 million in loans from Texas to build power projects that would run on natural gas, according to its top executive.

The loans would cover about 60% of the financing needed to build two plants that would be available on standby in 2026 and a gas plant in 2028, Interim Chief Executive Officer Larry Coben said Wednesday. The money, which would be doled out through the $5 billion Texas Energy Fund that voters approved in November, is expected to carry a 3% interest rate, he said.

Texas has spent years attempting to strengthen a power grid that’s been stressed during periods of extreme heat and cold. Governor Greg Abbott and other state leaders are keen to see new gas plants added to a system that increasingly depends on wind and solar power.

NRG, one of the first companies to announce its intent to apply for the loan, expects its projects to have an edge by being shovel ready, with equipment to build already ordered, Coben said. “We are doing the work we need to be able to start as soon as loan approvals come through, which should be in Q2,” he said in an interview.