Texas’ $7.2 billion loan program for gas power plants has approved two projects in two years

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When Texas legislators conceived of the Texas Energy Fund in the spring of 2023, its goal of jump-starting the construction of more natural gas power plants to support the state’s strained power grid seemed reasonable.

In the two years since that vote, however, experts say the energy market has turned against the development of gas-fired power plants. Experts and energy companies say the fund’s $7.2 billion worth of low-interest loans and bonus grants may not be appealing enough to overcome those economic headwinds.

“It is a challenging market for natural gas developers right now, and it has been for a good amount of time” said Walt Baum, CEO of Powering Texans,