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Released November 10, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Texas voters have approved Proposition 7, a constitutional amendment that creates a $10 billion state energy fund (Texas Energy Fund) to provide loans and grants for companies to develop new power generation in the state--including $7.2 billion strictly for natural gas-fired power plants. The fund does not provide any money for clean energy resources, such as wind, solar and battery storage.
Proposition 7's ballot language read: "The constitutional amendment providing for the creation of the Texas energy fund to support the construction, maintenance, modernization, and operation of electric generating facilities."
Out of the fund's remaining $2.8 billion, $1.8 billion is set aside for energy resilience projects at critical facilities, such as hospitals, and $1 billion is allocated for projects in Texas outside of the state's grid.
An explanatory statement from the Texas Secretary of State on Proposition 7 notes the fund would be administered by the Public Utility Commission of Texas (PUC) or its successor--the only ones that can use the money without further appropriation.
"The proposed amendment would require PUC to allocate money from the fund for loans and grants to eligible projects for electric generating facilities that serve as backup power sources and in each region of the state that is part of an electric power grid in proportion to that region's load share. The Texas energy fund would consist of: (1) money credited, appropriated, or transferred to the fund by or as authorized by the legislature; (2) revenue that the legislature dedicates for deposit to the fund; (3) the returns received from the investment of the money in the fund; and (4) gifts, grants, and donations contributed to the fund."
In late May, the Texas legislature passed Senate Bill 2627 (S.B. 2627), which established the Texas Energy Fund; shortly thereafter, the legislature passed the amended, final version of Senate Joint Resolution 93 (SJR 93), which put Proposition 7 on the ballot.
One of S.B. 2627's sponsors, State Senator Charles Schwertner (R-5), wrote an analysis of the bill earlier this year, saying "Winter Storm Uri revealed the failures in our electricity market, specifically the lack of reliability. ... S.B. 2627 creates a completion bonus and zero-interest loan for new dispatchable generation resources directly targeted at 'steel in the ground.' It also provides low-interest loans for existing dispatchable generators as a mechanism for generators to access capital needed to maintain and make necessary improvements to existing generation resources."
Industrial Info is tracking $12 billion worth of capital projects at natural gas-fired power plants in Texas, which leads all states in project activity.
That includes four projects under construction. Among them are El Paso Electric Company's (El Paso, Texas) $260 million Newman East Power Station in El Paso, and Entergy Corporation's (NYSE:ETR) (New Orleans, Louisiana) $2 billion Orange County Advanced Power Station in Orange, which is just east of Beaumont on the Louisiana border. For more information on the projects and expected natural gas generation capacity in the U.S., see October 19, 2023, article - U.S. to Add More than 16 GW of Gas-Fired Capacity through 2025.
Also underway are two projects from WattBridge Energy LLC (Houston, Texas) that are designed to generate power during periods of high (or "peaking") demand. Both projects kicked off in June, with construction expected to wrap up a year later: the grassroot $250 million Elmax Peaking Power Station in Huffman, in northeastern Harris County, is designed to generate 300 megawatts (MW). Meanwhile, the $150 million installation of two new units at its Brotman Peaking Power Station in Brazoria County, outside of Houston, would add an additional 100 MW to the existing 288-MW capacity. ProEnergy Services (Houston) is providing engineering, procurement and construction (EPC) services for both projects.
The Brotman plant was commissioned in May. Subscribers can read more information on the Elmax project, and the Brotman grassroot and unit addition projects.
Among the natural gas-generation projects in development is NRG Energy Incorporated's (NYSE:NRG) (Houston, Texas) proposed $564.8 million combined-cycle unit addition at its Cedar Bayou Power Station in Baytown, in east-central Harris County, which would add about 690 MW of power generation. The project would include a natural gas-fired combustion turbine in a single-shaft, combined-cycle configuration, utilizing a combustion turbine and steam turbine from Mitsubishi Power (Yokohama, Japan). In its late-engineering stage, the project is expected to kick off in 2025 and wrap up in 2028. Subscribers can click here for the project report.
Subscribers to the Power GMI Database can click here for the reports on all of the projects discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Proposition 7's ballot language read: "The constitutional amendment providing for the creation of the Texas energy fund to support the construction, maintenance, modernization, and operation of electric generating facilities."
Out of the fund's remaining $2.8 billion, $1.8 billion is set aside for energy resilience projects at critical facilities, such as hospitals, and $1 billion is allocated for projects in Texas outside of the state's grid.
An explanatory statement from the Texas Secretary of State on Proposition 7 notes the fund would be administered by the Public Utility Commission of Texas (PUC) or its successor--the only ones that can use the money without further appropriation.
"The proposed amendment would require PUC to allocate money from the fund for loans and grants to eligible projects for electric generating facilities that serve as backup power sources and in each region of the state that is part of an electric power grid in proportion to that region's load share. The Texas energy fund would consist of: (1) money credited, appropriated, or transferred to the fund by or as authorized by the legislature; (2) revenue that the legislature dedicates for deposit to the fund; (3) the returns received from the investment of the money in the fund; and (4) gifts, grants, and donations contributed to the fund."
In late May, the Texas legislature passed Senate Bill 2627 (S.B. 2627), which established the Texas Energy Fund; shortly thereafter, the legislature passed the amended, final version of Senate Joint Resolution 93 (SJR 93), which put Proposition 7 on the ballot.
One of S.B. 2627's sponsors, State Senator Charles Schwertner (R-5), wrote an analysis of the bill earlier this year, saying "Winter Storm Uri revealed the failures in our electricity market, specifically the lack of reliability. ... S.B. 2627 creates a completion bonus and zero-interest loan for new dispatchable generation resources directly targeted at 'steel in the ground.' It also provides low-interest loans for existing dispatchable generators as a mechanism for generators to access capital needed to maintain and make necessary improvements to existing generation resources."
Industrial Info is tracking $12 billion worth of capital projects at natural gas-fired power plants in Texas, which leads all states in project activity.
That includes four projects under construction. Among them are El Paso Electric Company's (El Paso, Texas) $260 million Newman East Power Station in El Paso, and Entergy Corporation's (NYSE:ETR) (New Orleans, Louisiana) $2 billion Orange County Advanced Power Station in Orange, which is just east of Beaumont on the Louisiana border. For more information on the projects and expected natural gas generation capacity in the U.S., see October 19, 2023, article - U.S. to Add More than 16 GW of Gas-Fired Capacity through 2025.
Also underway are two projects from WattBridge Energy LLC (Houston, Texas) that are designed to generate power during periods of high (or "peaking") demand. Both projects kicked off in June, with construction expected to wrap up a year later: the grassroot $250 million Elmax Peaking Power Station in Huffman, in northeastern Harris County, is designed to generate 300 megawatts (MW). Meanwhile, the $150 million installation of two new units at its Brotman Peaking Power Station in Brazoria County, outside of Houston, would add an additional 100 MW to the existing 288-MW capacity. ProEnergy Services (Houston) is providing engineering, procurement and construction (EPC) services for both projects.
The Brotman plant was commissioned in May. Subscribers can read more information on the Elmax project, and the Brotman grassroot and unit addition projects.
Among the natural gas-generation projects in development is NRG Energy Incorporated's (NYSE:NRG) (Houston, Texas) proposed $564.8 million combined-cycle unit addition at its Cedar Bayou Power Station in Baytown, in east-central Harris County, which would add about 690 MW of power generation. The project would include a natural gas-fired combustion turbine in a single-shaft, combined-cycle configuration, utilizing a combustion turbine and steam turbine from Mitsubishi Power (Yokohama, Japan). In its late-engineering stage, the project is expected to kick off in 2025 and wrap up in 2028. Subscribers can click here for the project report.
Subscribers to the Power GMI Database can click here for the reports on all of the projects discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
