AUSTIN The Public Utility Commission of Texas (PUCT) has received 72 applications for loans through the Texas Energy Fund’s In-ERCOT Generation Loan Program. In total, the applications request $24.41 billion to finance 38,379 megawatts of proposed dispatchable power generation projects in the Electric Reliability Council of Texas (ERCOT) region.
“Texans have made it clear that they expect reliable electricity today and well into the future, and I am pleased to see industry leaders responding to that call and planning for major investments in dispatchable power for the state,” PUCT Chairman Thomas Gleeson said in a news release. “These loan applications will be thoroughly reviewed to ensure we use the Texas Energy Fund in the most responsible and efficient way and deliver the on-demand power we need to fuel the state’s continued growth.”
PUCT staff will evaluate the applications in the coming weeks. The commission will determine which projects will proceed to due diligence at the PUCT’s Aug. 29 open meeting.
The In-ERCOT Generation Loan Program will provide low-interest loans to finance new construction or upgrades to existing dispatchable electric generating facilities within the ERCOT power region. To be eligible for a loan, a proposed project must add a minimum of 100 MW new generation to the ERCOT grid. The loan may finance up to 60 percent of the cost of the project.
Additional information on the project eligibility requirements and evaluation criteria can be found on the TEF Online website and in PUCT rule 16 TAC §25.510, which was adopted on March 21, 2024. Initial disbursements for approved loans will be issued by December 31, 2025.
The In-ERCOT Generation Loan Program is one of four TEF programs established under the Powering Texas Forward Act. Texans voted to create the TEF through a constitutional election on November 7, 2023. The TEF provides grants and loans to finance the construction, maintenance, modernization, and operation of electric facilities in Texas both inside and outside of the ERCOT power region.
Additional information about the TEF and the In-ERCOT Generation Loan Program is available on the PUCT website.
