Deloitte will build and administer the systems that support the TEF’s loan and grant programs and backup power packages, according to the PUC.
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A global consulting firm has begun developing the state’s new $10 billion loan and grant program to incentivize electricity generation construction, according to the Public Utility Commission.
In a recent release, the agency announced it had selected London-based Deloitte & Touche in February to oversee development of the program, known as the Texas Energy Fund. The PUC, which will oversee Deloitte’s work, selected the consulting firm after a competitive bidding process.
Under the TEF, eligible entities can apply for loans and grants to construct new dispatchable power generation within the ERCOT region. The TEF also provides funding for electricity infrastructure outside ERCOT. Deloitte will build and administer the systems that support the TEF’s loan and grant programs and backup power packages, according to the PUC.
Texans voted to create of the Texas Energy Fund in November 2023 following passage of Senate Bill 2627 from the 88th Legislative Session.
Inside-ERCOT Programs
The agency announced in March that the first TEF program to launch will be the inside-ERCOT loan program to provide low-interest loans to finance construction of new, dispatchable generation or to upgrade existing facilities within the ERCOT region. Under SB 2627, only projects that add at least 100 megawatts of generation capacity to the grid can obtain this TEF funding. The PUC says it will begin accepting loan applications for this portion of the program in June 2024 and begin distributing TEF loans by December 1, 2025.
The PUC likewise announced ongoing development of the inside-ERCOT completion bonus grant program for new dispatchable electric generation facilities. Eligible projects must meet the planning mode requirements to be included in ERCOT’s Capacity, Demand, and Reserves biannual reports after June 1, 2023, according to the PUC. Only qualifying facilities that interconnect to ERCOT before June 1, 2029, will be eligible.
PUC staff presented proposed rules for both inside-ERCOT programs to the agency’s commissioners in November 2023. The PUC also held a public workshop and collected public comments on proposed rules. On March 21, 2024, the PUC adopted rules for the Inside ERCOT loan program. More information can be found on the PUC website, under Docket. 55826.
Development and implementation of the outside-ERCOT loan program will begin once the two inside-ERCOT programs have launched, according to the agency.
You can find out more about Senate Bill 2627 here.