How Will More Gas Powered TX Energy Happen?
Ever since Winter Storm Uri in February 2021, Texan have clamored for better grid reliability. One of the ways lawmakers have tried to keep electric companies moving power has been to increase dispatchable energy. The In-ERCOT Generation Loan Program, part of the Texas Energy Fund (TEF), offers low interest loans for building or upgrading power plants that can turn on quickly. Primarily, this favors natural gas plants. That leaves out wind and solar farms because they must rely on weather conditions to produce power. Therefore, lawmakers saw fit to bolster gas powered TX energy projects.
Competing For Funding
To be eligible for the natural gas plant funding through the TEF, a project must add a minimum of 100 MW of new generation to the ERCOT market. The loans can finance up to 60% of costs.
Companies had until May 31 to file notices of intent with the Public Utility Commission of Texas. They filed more than 150 notices by the deadline. Conservatively, the projects make 41 GW of gas powered TX energy. Some put that figure as much larger, estimating 56 GW. This discrepancy appears because individual projects show ranges of power output. Now, those companies have until July 27 to submit loan applications.
All told, the Texas PUC can dole out up to $5B in loans. Regulators will have some tough choices to make because the notices of intent add up to around $40B. Undoubtedly, some energy finance wonks are putting in long hours to beat the competition.
More Gas Powered TX Energy
Even though many of the projects won’t receive TEF funding, the prospect of so many projects ready for funding bodes well for Texans. They aren’t “shovel ready,” but they’re close enough to spur good feelings about grid reliability. Even if this round of state funding doesn’t pan out for a given project, the sponsoring company has done its due diligence for private funding. And, perhaps, more public funding will come.
More Power For You
Even if you have a 100% green electric plan, more gas powered TX energy will make the grid more reliable. Plus it will cut prices. So, you may pay less for your future green power plans. Green or otherwise, be sure to pick the right plan for your home at https://www.texaselectricityratings.com.