The Texas Public Utility Commission has signed a sixth loan agreement through the Texas Energy Fund’s in-ERCOT loan program, up to $370 million for a new 455-MW gas-fired plant in the Houston area.

The unit would more than double the capacity of NRG Energy’s existing Greens Bayou Generating Station. NRG has a large 78-MW steam turbine unit, three 54-MW gas or fuel turbine units and three 64-MW gas turbines, totaling 354 MW of capacity.

Greens Bayou Unit 6 is expected to come online in 2028. The TEF’s In-ERCOT Generation Loan Program has now produced loans for more than 3,500 MW of dispatchable gas generation. That is more than a third of the way to the $10 billion fund’s 10,000-MW objective.

NRG’s president of business and wholesale operations, Robert Gaudette, said reliable power is “essential” to keep fueling Texas’ “unprecedented” growth.

“Our investment at Greens Bayou reflects NRG’s commitment to delivering dependable, dispatchable generation when Texans need it most,” he said in a statement Nov. 20.

Total project costs under the loan agreement are estimated at less than $617 million. The PUC is providing a 20-year loan for up to $370 million, or 60% of total cost, at 3% interest. The loan’s term runs through November 2045, and Greens Bayou 6 must meet minimum performance standards.

The loan is the third that NRG has secured from the in-ERCOT program, which has been allocated $7.2 billion of the total fund. The Houston-based generator’s other projects were granted $778 million in loans for 1,177 MW of nameplate capacity. (See NRG Energy Secures $216M Loan from TEF and NRG Secures $562M Loan from Texas Energy Fund.)

The PUC is vetting 11 additional applications, representing 5,406 MW of gas generation, for TEF’s in-ERCOT program.