Texas Energy Fund Program Open for Notices of Intent

A Blog Post by Jessica Soos -- 

Companies in the business of electric power generation have until May 31, 2024 to complete and file their Notices of Intent to apply for a Texas Energy Fund Generation Loan — the first step to be eligible for a loan under the program. This program draws from the five-billion-dollar Texas Energy Fund developed by the Texas Legislature and the Public Utility Commission of Texas; this specific program will provide low-interest loans for construction of or upgrades to dispatchable electric generating facilities in the ERCOT region. Qualifying new facilities may be able to finance up to 60% of their cost through the program. Eligibility and application evaluation hinge on a number of regulatory, technical, and financial considerations. Prospective applicants should review all applicable statutes and rules thoughtfully to ensure their application meets all the requirements and highlights upon which the TEF administrator may focus their evaluations.

When attempting to take advantage of the loan program, companies may want to structure the project so that it will additionally be eligible for the Texas Energy Fund Completion Bonus Grants, which provide a per-MW incentive for qualifying facilities that come online prior to June 1, 2029 and meet certain performance requirements.