The project will add 456 MW of dispatchable power to the grid, helping to meet Texas's surging electricity demand.
In a significant move to fortify Texas’s power grid against rising demand, NRG Energy, Inc. announced the successful execution of a loan agreement with the Public Utility Commission of Texas (PUCT) through the Texas Energy Fund (TEF) Loan Program. This funding will support the construction of two new natural gas generation units at the company’s existing TH Wharton power plant, a project designed to provide 456 megawatts (MW) of new, reliable power to the Houston metropolitan area by the summer of 2026.
The Texas Energy Fund, established to incentivize the development of new dispatchable power generation, represents a critical state-level initiative to address growing concerns over grid stability. The NRG project is one of the first major investments to come to fruition under the program, which was overwhelmingly approved by Texas voters in 2023. This strategic partnership between a leading energy provider and the state government underscores a shared commitment to building a more resilient energy infrastructure.
Robert J. Gaudette, Executive Vice President and President of NRG Business and Wholesale Operations, commented on the importance of the project. "Demand for electricity across Texas is surging, and we’re working quickly to supply new dispatchable natural gas generation to the grid,” he stated. Gaudette also highlighted the broader impact of the development, noting, “Our new units at TH Wharton will add lasting benefits to the surrounding community with the addition of jobs, enhanced grid stability and economic growth."
The need for new generation capacity has become increasingly urgent as Texas experiences unprecedented growth. The state is grappling with a combination of rapid industrial expansion, a boom in artificial intelligence (AI)-powered data centers, and sustained residential development, all of which are placing immense strain on the Electric Reliability Council of Texas (ERCOT) power region. The new units at the TH Wharton plant will deliver much-needed, dependable power to the constrained Houston load zone.
This project is a key component of NRG's larger strategy to enhance Texas’s energy landscape. In addition to the TH Wharton site, the company has two more projects at its Cedar Bayou and Greens Bayou facilities that are currently advancing through the TEF due diligence process. Collectively, NRG’s TEF-supported projects are projected to contribute more than 1.5 gigawatts (GW) of new natural gas generation to the Texas grid by 2028. This substantial capacity is enough to power over 1.5 million homes annually, marking a significant step toward achieving the state’s long-term energy security goals.
