Texas Approves $278 Million for Calpine’s 460-MW Natural Gas Plant in Freestone County
Texas has approved a $278 million low-interest loan to support Calpine’s 460-MW natural gas plant in Freestone County, part of the state’s Texas Energy Fund initiative to expand reliable power across the ERCOT grid.
(P&GJ) — Texas Governor Greg Abbott has announced the approval of a Texas Energy Fund (TxEF) loan for a 460-megawatt (MW) natural gas power plant being developed by Calpine Corporation in Fairfield, Freestone County. The project is expected to begin generating electricity for the Electric Reliability Council of Texas (ERCOT) grid before summer 2026.
“Texans across our great state are benefiting from the reliable, affordable power that the Texas Energy Fund is helping add to the state grid, with hundreds of megawatts coming online,” Abbott said. “This 460 MW investment will further grow our power supply and keep prices affordable for homes and businesses in North Texas.”
The loan marks the fourth TxEF agreement finalized under the In-ERCOT Generation Loan Program, which offers low-interest financing for new dispatchable power projects.
According to the Public Utility Commission of Texas (PUC), total project costs are estimated at $464 million, with the state providing a $278.3 million loan — covering 60% of total costs — at a 3% interest rate over 20 years. The loan term runs from October 27, 2026, through December 31, 2045.
“The Texas Energy Fund has now brought nearly 1,800 megawatts of new, reliable power generation to the state of Texas – and there’s more on the way,” said PUC Chairman Thomas Gleeson. “We are investing in the future of every region of our state and strengthening the foundation for continued electric reliability and growth.”
Calpine said the new Pin Oak Creek Energy Center, located adjacent to its existing Freestone Energy Center, is designed to deliver quick-start, dispatchable generation capacity.
“Calpine is proud to demonstrate our commitment to Texas with our new Pin Oak Creek Energy Center in Freestone County,” said Calpine Executive Vice President of Commercial Operations Caleb Stephenson. “This 460-megawatt, state-of-the-art facility is designed to start within minutes and will deliver safe, reliable power exactly when Texans need it most.”
The new facility will connect to the ERCOT North Load Zone, which serves the Dallas–Fort Worth metroplex.
In addition to the four loans approved so far, the PUC said 13 more applications are under review, representing more than 7,200 MW of proposed new dispatchable generation for the Texas grid.