May 22, 2024
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OIL & GAS

TotalEnergies Acquires 1.5 GW Flexible Power Generation Capacity in Texas

With the signing of an agreement to acquire three gas-fired power plants in Texas from TexGen for $635 million, TotalEnergies has taken a significant step in enhancing its position as an integrated power player. The acquisition comprises plants with a total capacity of 1.5 GW, strategically located in the ERCOT (Electric Reliability Council of Texas), the second-largest power market in the United States.

According to TotalEnergies, the three power plants included in the agreement are, wolf hollow I plant, A 745 MW combined-cycle gas turbine (CCGT) plant located on the outskirts of Dallas. There is also Colorado Bend I plant, a facility with a 530 MW CCGT and a 74 MW open-cycle gas turbine (OCGT) situated south of Houston, offering flexibility to meet high demand, especially during peak periods. The La Porte site has A 150 MW OCGT plant located southeast of Houston.

These assets play a crucial role in offsetting the intermittency of renewable power production and meeting the growing energy demand in Dallas and Houston areas. TotalEnergies aims to leverage the flexibility of these plants to address challenges such as weather-related impacts on renewable power generation and high seasonal peak demand.

The 1.5 GW additional flexible production capacity aligns with TotalEnergies’ commitment to delivering reliable, affordable, and sustainable energy to the 26 million ERCOT customers across Texas. The acquisition will complement the company’s existing renewable capacity in the state, which includes 2 GW gross installed, 2 GW under construction, and more than 3 GW under development.

Stéphane Michel, President of Gas Renewables & Power at TotalEnergies, expressed enthusiasm about the agreement, highlighting its significance in advancing the company’s Integrated Power strategy in the ERCOT market.

“We are delighted with the agreement signed with TexGen to acquire 1.5 GW of CCGT in ERCOT. After the signing of several corporate PPA over the last couple of years and the recent start-up of the utility-scale Myrtle solar plant, this deal is a major milestone for our Integrated Power strategy in the ERCOT market. These plants will enable us to complement our renewable assets, intermittent by nature, provide our customers with firm power, and take advantage of the volatility of electricity prices.”

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