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    Calpine to build more gas-fired power plants in Texas


The decision comes after state regulators announced market-based incentives for reliable power. [Image: Calpine]

by: Shardul Sharma

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Calpine to build more gas-fired power plants in Texas

US-based power producer Calpine on April 12 announced it has relaunched its plan to build more gas-fired power plants in Texas following a move by state regulators to embrace market-based incentives for reliable power.

Calpine said its plan includes multiple projects in various stages of development and supports goals outlined by the Public Utility Commission (PUC).


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“We are encouraged that the PUC has laid the foundation to ensure Texas maintains a reliable power supply through market-based mechanisms, and we are excited to move forward with projects that will deliver on that mission. We look forward to the PUC’s final actions,” said Caleb Stephenson, executive vice president of commercial operations of Calpine. “Our hope is that the legislature will respect the regulatory certainty offered by the PUC and avoid discriminatory programs or direct government procurement that would undermine competition in Texas.”

The initial project is a new 425 MW gas-fired power plant adjacent to the existing Freestone Energy Center in Freestone County. Efforts underway include engineering and site planning, grid interconnection requests, and environmental permitting, it said. Critical components including gas turbines and generators have been procured and are ready for deployment. The new facility will be operational before the summer of 2026.

Other projects under development by Calpine in Texas include a 425 MW gas-fired power plant adjacent to the Guadalupe Energy Center in Guadalupe County. Permitting and interconnection efforts are underway.

Calpine is also fitting power generation projects with equipment to capture CO2 emissions. It is also planning a new large-scale combined cycle gas generation power plant to support co-located industrial load as well as the electrical grid.

“The PUC has sent a clear signal that Texas is ready to support ambitious investments in a more reliable grid based on the principles of competition not government mandates,” added Stephenson.