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Calpine secures Texas Energy Fund loan for 460 MW peaking power plant

Calpine Corporation has finalised a public funding agreement to accelerate the construction of a peaking power plant in Freestone County, strengthening Texas’s grid response capacity during peak demand periods.

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Calpine Corporation confirmed it has secured a loan from the Texas Energy Fund to support the development of a 460-megawatt power generation facility currently under construction near the Freestone Energy Center in Freestone County, Texas. The project, named Pin Oak Creek Energy Center, is scheduled to come online before the summer of 2026.

A targeted response to rising summer demand

Designed as a peaking facility, the plant will be able to start within minutes to respond to high-consumption periods. This type of unit plays a strategic role in grid stability, particularly during sharp increases in demand caused by high temperatures or industrial activity. Calpine expects rapid commissioning to ensure full operational capacity ahead of the upcoming summer season.

State funding support for reserve capacity

The loan granted by the Texas Energy Fund is part of a programme launched by Texas authorities to enhance electricity supply security. The fund aims to stimulate investment in infrastructure capable of adding greater flexibility to the grid, particularly during periods of energy stress. The exact amount of the loan has not been disclosed, but it represents a key lever to accelerate the project’s delivery timeline.

A project located on an existing site

The new facility is being built on a site already owned by Calpine, allowing use of existing infrastructure and reducing interconnection delays. The company, which operates several assets in the state, continues to expand its presence in Texas, a market marked by strong demographic and industrial growth. The Freestone site was selected for its proximity to transmission networks and key energy consumption centres.

Maintaining industrial commitments in a strained state market

As the Texas grid has faced multiple critical events in recent years, industrial players such as Calpine are investing in thermal facilities capable of responding swiftly to demand fluctuations. The Pin Oak Creek project fits within this strategy, providing dispatchable capacity without depending on weather conditions.

“This facility will deliver reliable electricity exactly when Texans need it most,” said Caleb Stephenson, Executive Vice President of Commercial Operations at Calpine.

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