NRG Energy Secures Funding for 456 MW Natural Gas Generation Project in Texas

NRG Energy has closed on a loan for a 456 MW natural gas generation project at its TH Wharton power plant in Texas. The project, which is part of the Texas Energy Fund Loan Program, is expected to start bringing power to the Houston load zone in Summer 2026. NRG plans to bring over 1.5 GW of new natural gas generation to Texas by 2028, providing enough capacity to power over 1.5 million homes annually.

Houston, TX – NRG Energy, Inc. (NYSE:NRG) has successfully closed on a loan agreement with the Public Utility Commission of Texas (PUCT) for a 456 MW natural gas generation project at its TH Wharton power plant. The project, part of the Texas Energy Fund (TEF) Loan Program, is expected to commence operations by Summer 2026, delivering much-needed power to the constrained Houston load zone [1].

The loan agreement, valued at $216 million, represents 60% of the project's total costs, with a 3% interest rate and a term running from July 31, 2025, through July 30, 2045 [3]. The project is part of NRG's broader strategy to bring over 1.5 GW of new natural gas generation to Texas by 2028, enough capacity to power over 1.5 million homes annually [1].

NRG's Executive Vice President and President of Business and Wholesale Operations, Robert J. Gaudette, stated, "Demand for electricity across Texas is surging, and we are working quickly to supply new dispatchable natural gas generation to the grid. 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" [1].

The TH Wharton project is one of several initiatives by NRG to meet the state's growing energy demands, driven by rapid industrial expansion, AI-powered data centers, and residential development. NRG has two additional projects at its Cedar Bayou and Greens Bayou sites progressing through the TEF due diligence process [1].

NRG Energy, Inc. is committed to serving the needs of Texans today and in the future, delivering innovative natural gas, electricity, and smart home solutions across North America [2].

References:
[1] https://www.businesswire.com/news/home/20250730611348/en/NRG-Closes-on-Texas-Energy-Fund-Loan-for-456-MW-Natural-Gas-Generation-Project
[2] https://www.nasdaq.com/press-release/nrg-closes-texas-energy-fund-loan-456-mw-natural-gas-generation-project-2025-08-04
[3] https://www.publicpower.org/periodical/article/governor-announces-texas-energy-fund-loan-456-mw-natural-gas-facility