$2B combined-cycle natural gas project marks the largest Texas Energy Fund investment to date and will deliver new dispatchable capacity to the ERCOT grid by 2029
Competitive Power Ventures (CPV) has officially broken ground on the 1,350-MW CPV Basin Ranch Energy Center in Ward County, Texas, one of the largest new dispatchable generation projects currently under development in the ERCOT market. The November 20 ceremony marks the transition from years of planning into full-scale construction of the $2 billion combined-cycle natural gas facility, which is expected to begin commercial operations in 2029.
The project, located in the Permian Basin, is designed to strengthen grid reliability in a rapidly growing region of Texas while adding more than 10 percent of the Texas Energy Fund’s (TxEF) targeted 10 GW of new firm capacity. In October, CPV and the Public Utility Commission of Texas closed a $1.1 billion TxEF low-interest loan, making Basin Ranch the largest project approved under the program so far.
A Major Reliability Boost for ERCOT
Company leaders said the groundbreaking represents the culmination of four years of development work. CPV CEO Sherman Knight emphasized that bringing new dispatchable generation to high-growth areas is central to the company’s mission. He noted that CPV considers “responsible energy” one that enhances reliability, keeps financial risk away from ratepayers, and upholds environmental and community commitments.
Peter Podurgiel, CPV’s President of Low Carbon Generation, highlighted the importance of community support in advancing the project, saying the plant will only succeed because local stakeholders recognized its value to the region’s long-term economic and energy needs.
Once operational, CPV Basin Ranch will be capable of powering the equivalent of 850,000 West Texas homes. The plant will feature GE Vernova’s high-efficiency H-Class turbines and is fully permitted to incorporate carbon capture technology in later phases, an option CPV views as part of its long-term low-carbon strategy. Construction is being led by Gemma Power Systems.
Economic Impact for Ward County
Local officials underscored the project’s role as a major economic driver. According to CPV, the Basin Ranch Energy Center represents an approximately $2 billion investment and is expected to generate more than $400 million in tax revenue over its lifetime.
Ward County Judge Greg M. Holly described the project as a long-term benefit for both the county and the state, noting that the plant will add jobs during construction and continue contributing to local economic health for decades. Teresa Burnett of the Monahans Chamber of Commerce pointed to significant opportunities tied to the plant’s development.
CPV also reinforced its commitment to community partnership by donating $10,000 to the Monahans Kids Zone, an afterschool and summer program preparing to expand services in 2026. Program leaders called the contribution a meaningful boost toward their fundraising goals.
Background: Largest Project Selected Under the Texas Energy Fund
When the financing agreement was announced on Oct. 30, Texas Governor Greg Abbott said the Basin Ranch Energy Center would deliver hundreds of megawatts of new reliable capacity and help keep energy prices affordable. He emphasized that the project would strengthen the state’s power supply as ERCOT continues to experience rapid load growth.
Courtesy of CPV
CPV executives noted at the time that Texas offers a supportive environment for advanced, dispatchable generation. They said Basin Ranch would rank among the most efficient combined-cycle plants in the state upon completion, with access to multiple natural gas supply sources, including Coterra, Devon, and Diamondback, positioning the facility to maintain performance during extreme weather events.
The CPV Basin Ranch Energy Center is part of the company’s development pipeline of more than 10 GW of dispatchable and renewable projects across the United States. As ERCOT faces consistent peak-load growth and increasing integration of intermittent resources, the Basin Ranch project is positioned to play a key role in stabilizing the grid in West Texas.
Commercial operations are anticipated for 2029, adding one of the most modern and efficient 1,350-MW combined-cycle plants to the ERCOT system and marking a major milestone for both CPV and Texas’s broader efforts to expand dispatchable generation capacity.
by João Fernando
