Vistra Corp., which provides services nationwide to commercial, industrial, municipal and residential customers, has unveiled plans to add up to 2,000 MW of natural gas-fueled capacity across Texas to serve “rapidly increasing power demand,” CEO Jim Burke said.
The company, headquartered in Irving near Dallas, has set in motion plans to add up to 860 MW of advanced simple-cycle natural gas peaker plants for the Permian Basin in West Texas. The expansion would “support the increasing power needs of the region, including the state's growing oil and gas industry,” Burke noted.
Vistra also may repower the coal-fired Coleto Creek Power plant near Goliad, which is set for retirement in 2027. The upgraded facility could be converted as a natural gas generator, enabling up to 600 MW of additional capacity.
In addition, several existing gas plants are on the table for upgrades that could add more than 500 MW of summer capacity and 100 MW of winter capacity.
“Texas is in the enviable position of experiencing sustained economic growth, which includes rapidly increasing power demand as a result of population growth and electrification activities in a number of areas, including transportation, data centers, manufacturing and industrial activities,” Burke said.
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Within the Electric Reliability Council of Texas (ERCOT), which serves 90% of the state, Burke noted that Texas policymakers were “implementing several enhancements to our competitive, energy-only electricity market to incentivize construction of much-needed dispatchable generation, and gas plants are able to meet that need.”
The market enhancements would bring about 2,000 MW of dispatchable power generation to the ERCOT grid, Burke noted.
Vistra’s proposed plans follow approval last November by Texas voters of a ballot measure to create the Texas Energy Fund. The fund provides low-interest loans to build additional natural gas-fired capacity within the ERCOT grid.
“As Texas continues to develop its vast wind and solar resources, these quick-start gas units help to back up the grid when renewable resources are not available and the battery storage limits have been reached, with the goal of reliable, affordable, and sustainable 24/7 power for Texans,” Vistra executives noted.
The company was planning to file a notice of intent with the state on Friday (May 31) to secure Texas funding for new peakers.
"Since the market opened to competition, over $100 billion has been invested by a wide range of investors in a variety of power generation technologies to meet the growing needs of Texans," Burke said. "The ERCOT market has a history of attracting generation owners who put their capital at risk when there are investment signals. We look forward to building upon our 140-year history of powering Texas."
The available funds in Texas provide a big reason for Vistra to move forward with the gas projects. However, the final decision, according to the company, “is contingent upon other various factors, including state and federal environmental regulations and long-term wholesale trends that continue to support gas generation.”
Vistra, considered the largest electricity generator in Texas, now has a dispatchable generation fleet of 18,000 MW in the state. Among its assets are three large solar farms and two battery energy storage assets with a total of 600 MW of generation capacity.
Vistra, considered the largest electricity generator in Texas, now has a dispatchable generation fleet of 18,000 MW in the state. Among its assets are three large solar farms and two battery energy storage assets with a total of 600 MW of generation capacity.
