Supported by a historic $1.1 billion state loan, the facility is designed for future carbon capture and is projected to power equivalent to 850,000 homes by 2029.
Competitive Power Ventures (CPV) has officially commenced construction on the CPV Basin Ranch Energy Center, a massive infrastructure project poised to reshape the energy landscape of West Texas. The groundbreaking ceremony, held in Ward County, marked the start of the 1,350-megawatt (MW) combined-cycle natural gas power plant, a facility designed to provide critical dispatchable generation to the Electric Reliability Council of Texas (ERCOT) grid.
The project represents a total investment of approximately $2 billion. It serves as a direct response to the growing demand for reliable power in the region, specifically targeting the need for energy sources that can perform even when renewable sources like wind and solar are offline.
The groundbreaking comes shortly after Texas Governor Greg Abbott announced that the project had secured a $1.1 billion loan through the Texas Energy Fund (TxEF). This financing is the largest announced under the TxEF program to date, accounting for more than 10% of the state’s target to add 10 gigawatts of new, dispatchable generation capacity.
"These are the days that excite our team, seeing a project enter into construction after years of development," said Sherman Knight, CEO of CPV. Knight emphasized the company's dual focus on reliability and responsibility. "To us, responsible energy means building projects that bolster reliability, retains the risk of the investment on us instead of the ratepayer, while doing so in an environmentally responsible way."
Construction efforts will be led by Gemma Power Systems, with the facility set to utilize state-of-the-art turbines provided by GE Vernova. A key feature of the plant's design is its future readiness; the facility is permitted and engineered to integrate a carbon capture system in future phases.
Once it reaches commercial operation, expected in 2029, the CPV Basin Ranch Energy Center will generate enough electricity to power the equivalent of 850,000 West Texas homes.
Beyond the grid, the project promises substantial economic benefits for the local Monahans and Ward County communities. CPV projects that the facility will generate over $400 million in local tax revenue over its lifespan.
Local officials have welcomed the development as a long-term economic driver. "It is opening the door to valuable opportunities in our region through jobs and positive economic impact," noted Teresa Burnett, Executive Director of the Monahans Chamber of Commerce.
