AUSTIN The Public Utility Commission of Texas (PUCT) has received 125 notices of intent (NOI) to apply for a loan through the Texas Energy Fund’s In-ERCOT Generation Loan Program. In total, the notices request $38.9 billion in financing for 55,908 megawatts of proposed dispatchable power generation projects for the Electric Reliability Council of Texas (ERCOT) region.
“To ensure reliable, affordable electricity for the growing number of homes and businesses in Texas, we need more on-demand, dispatchable power generation,” PUCT Chairman Thomas Gleeson said in a news release. “Seeing such a strong initial response from industry to the In-ERCOT Loan Program is an encouraging sign that the Texas Energy Fund will be an effective tool and incentivize the investment needed to bring more on-demand power to the state.”
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 considered for a loan, eligible entities were required to submit a NOI to the PUCT by May 31, 2024 and now must submit a completed loan application through the TEF Portal between June 1 – July 27, 2024.
To be eligible for a loan, the 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.
Resources to support applicants are available on the TEF Online website, and additional information on the application process, project eligibility requirements, and evaluation criteria can be found in 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 Nov. 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.
