The Senate of the US state of Texas has approved a package of energy reforms, including a US$10bn energy insurance program that aims to boost grid reliability through the development of 10 GW of new gas-fired power plants across the state. The Senate Bill 6 also creates a low interest loan program to maintain older dispatchable generation plants.
The Lower Colorado River Authority (LCRA), a Texas power utility, has however estimated the cost of the project to be much higher, approaching US$18bn. For the initial US$10bn price tag, only 5.8 GW of power capacity could be constructed. The energy company Berkshire Hathaway Energy was the only industry representative who voiced support for the bill. Berkshire first proposed building backup generators in 2021 and is expected to be a leading candidate to win the contract.
In 2021, gas-fired plants represented 44% of the US’ installed capacity with 560 GW and 37% of its power generation with 1,615 TWh.
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