NRG Energy’s 3.07% Surge Driven by $216M Texas Loan Sparks $370M Trade Ranks 287th in Market Activity

On August 12, 2025, NRG Energy (NRG) rose 3.07% with a trading volume of $0.37 billion, ranking 287th in market activity. The stock’s performance followed the announcement of a $216 million low-interest loan from the Texas Energy Fund to develop two gas units at its TH Wharton Generating Station in Houston. The project, totaling 456 MW of capacity, is part of the Texas Public Utility Commission’s In-ERCOT Generation Loan Program, aimed at boosting dispatchable natural gas generation to meet Texas’s surging electricity demand. The loan covers 60% of the estimated $360 million project cost at a 3% interest rate, with operations expected to commence next summer.

The funding underscores NRG’s strategic alignment with Texas’s energy infrastructure needs, as ERCOT anticipates 152 GW of new load by 2030. NRG’s Executive Vice President highlighted the urgency to expand reliable generation amid rising demand. However, the project faces broader industry challenges, with about a third of the 10 GW of state-backed gas projects selected in 2024 canceled or withdrawn due to cost escalations and supply chain issues. The loan’s long-term terms, extending through 2045, reflect the state’s commitment to stabilizing power supply amid growth.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a moderate return. The total profit from this strategy, considering the given time period from 2022 to the present, is $2,300. The maximum drawdown during this period was -15.7%, which occurred in early 2023. This indicates that while the strategy has the potential to generate some profits, it is not without its risks, as evidenced by the significant drawdown in February 2023.