Texas Governor Wants to Double Gas-Plant Fund to $10 Billion

(Bloomberg) -- Texas Governor Greg Abbott wants to double a newly created loan program for building gas-fired power plants to $10 billion in order to meet the state’s growing demand for electricity.

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Voters last year approved the Texas Energy Fund, offering $5 billion in low-interest loans for plant construction. Developers have already expressed interest in applying for $39 billion — almost eight times the amount available.

“With the new projections for 2030, we will seek to expand the program to $10 billion to build more new plants as soon as possible,” Abbott and Lieutenant Governor Dan Patrick said in a statement Monday.

Electricity demand is surging across the country, driven by the rising number of data centers and electric cars. Texas could need 150 gigawatts of electricity by 2030, according to the head of the state’s power grid operator. It has only 85 gigawatts of capacity today. Abbott and Patrick said the state needs “an immediate review of all policies concerning the grid” to ensure it meets projected demand.

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