Public Utility Commission of Texas Launches Texas Energy Fund In-ERCOT Generation Loan Program

Jo-Carolyn Goode | 5/31/2024, 1:54 p.m.
Exciting news for Texas energy sector! Starting tomorrow, June 1, 2024, the Public Utility Commission of Texas (PUCT) will open …

 Exciting news for Texas energy sector! Starting tomorrow, June 1, 2024, the Public Utility Commission of Texas (PUCT) will open applications for the Texas Energy Fund (TEF) In-ERCOT Generation Loan Program. This significant initiative aims to bolster the state’s power grid by financing new construction and upgrades to existing dispatchable electric generating facilities within the Electric Reliability Council of Texas (ERCOT) power region.

Eligible entities eager to secure a loan must have previously submitted a notice of intent to apply and should complete their loan application on the TEF Portal between June 1 and July 27, 2024. With resources available on the TEF Online website, applicants can access vital information and support to ensure their submissions meet the required criteria. Details on the application process, project eligibility requirements, and evaluation criteria are comprehensively outlined in 16 TAC §25.510, adopted on March 21, 2024. The initial disbursements for approved loans are set to be issued by December 31, 2025.

Empowering Texas Through Innovative Energy Solutions

The In-ERCOT Generation Loan Program is designed to support projects that add a minimum of 100 MW of new generation capacity to the ERCOT grid. By financing up to 60 percent of the project cost, this program is poised to significantly enhance Texas’s energy infrastructure. It stands as one of the four TEF programs established under the Powering Texas Forward Act, a groundbreaking initiative approved by Texans in a constitutional election on November 7, 2023. The TEF is dedicated to providing grants and loans to finance the construction, maintenance, modernization, and operation of electric facilities across Texas, both within and outside the ERCOT power region.

Supporting a Sustainable Future

Thomas Muñoz, the newly appointed Acting Director of Public Safety and Homeland Security, has emphasized the critical importance of this program. "This initiative is not just about enhancing our power grid; it's about securing a sustainable and reliable energy future for all Texans," said Muñoz. "The TEF In-ERCOT Generation Loan Program exemplifies our commitment to innovation and resilience in the face of growing energy demands."

How to Apply

Entities interested in applying can find additional information about the TEF and the In-ERCOT Generation Loan Program on the PUCT website. The website offers detailed guidance on eligibility, application procedures, and the overall objectives of the program. With the backing of this comprehensive support system, applicants can confidently pursue projects that will contribute to the robustness and sustainability of Texas's energy landscape.

The Public Utility Commission of Texas remains dedicated to powering the state's future with robust, reliable, and modern energy solutions. This new program is a testament to the state’s proactive approach to addressing energy needs and ensuring a secure power supply for its residents.

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