Competitive Power Ventures (CPV) and the Public Utility Commission of Texas (PUCT) have executed a $1.1 billion low-interest Texas Energy Fund (TxEF) loan to build a 1,350-megawatt combined-cycle natural gas power plant in the Permian Basin. The project will immediately transition to construction with operations expected to start in 2029.
CPV Basin Ranch Energy Center, located in Ward County, represents the largest project selected to date for TxEF financing, and accounts for more than 10% of the program’s targeted 10 GW of new, dispatchable generation capacity.
“Texas is powering the future of reliable, affordable energy across the nation and around the world,” said Governor Greg Abbott. “Through the Texas Energy Fund, CPV Basin Ranch will bring hundreds of megawatts of new, reliable power online and help keep prices affordable. This 1,350-megawatt investment will further grow our power supply and ensure continued reliability for homes and businesses in Texas as we add more power and fortify the state grid.”
“CPV is committed to responding to Texas’s rapidly growing demand for new, dispatchable power generation. We are extremely grateful to Governor Greg Abbott, his administration, the Texas Legislature, the PUCT, and the entire Ward County community for entrusting us to serve the region,” said Sherman Knight, CEO of Competitive Power Ventures. “Texas offers the opportunities and incentives to drive future development, our team at CPV looks forward to doing our part to make this a reality.”
With access to the multiple natural gas supply sources of Coterra, Devon, and Diamondback, CPV Basin Ranch will be able to maintain consistent performance during extreme weather and other critical events, helping to stabilize the ERCOT grid when it is needed most. Gemma Power Systems will lead construction efforts for the project. The facility will be equipped with state-of-the-art turbines by GE Vernova and is permitted and designed to include a carbon capture system in future phases of the project.
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