NRG Energy will receive a $562 million low-interest loan through a state fund that supports construction of new natural gas power plants. It’s the third and largest loan announced under the Texas Energy Fund.  The 20-year loan (for 60 percent of project cost) will allow NRG to move forward with construction of a 721-megawatt unit at its Cedar Bayou generating station in Chambers County near Baytown.  It is expected to begin generating power by summer 2028.

The loan announced Sept. 26 by Gov. Greg Abbott more than doubles the amount of money distributed – and the power generation expected to be created – since state lawmakers launched the Texas Energy Fund in 2023 to strengthen the state’s strained power grid.  PUC said there now are 14 applications in process for loans from the fund.

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