**Texas Energy Fund to Loan Calpine $276M for Fairfield Natural Gas Power Plant**
The Texas Energy Fund (TxEF) has approved a $276 million low-interest loan to Calpine Corporation for the construction of a 460-megawatt natural gas power plant in Fairfield, Texas. The facility, which will support the Electric Reliability Council of Texas (ERCOT) power region, is scheduled to begin operations before the summer of 2026.
The total estimated cost of the project is $464 million, with the state-funded loan covering approximately 60% of that amount. The loan carries a 3% interest rate and is part of TxEF’s In-ERCOT Generation Loan Program, designed to support the development of new, dispatchable power generation capacity within the ERCOT grid.
The new plant is being built adjacent to Calpine’s existing Freestone Energy Center in Freestone County and will connect to the ERCOT North Load Zone, which serves the Dallas-Fort Worth metroplex.
This marks the fourth project to receive funding under the TxEF’s loan program. In addition to these approved loans, the program is currently reviewing 13 more applications for funding under a due diligence process.
