Texas electricity situation to ease with new gas-fired power plant

Panda Power Funds announced on Tuesday, September 18, that it will soon start construction on its second natural-gas fired power plant in Texas, which it says will help the state with is potential energy crisis in which electricity demand could outstrip supply, Reuters reports.

According to the media outlet, Panda Sherman Partners said it will construct a 758-megawatt plant near Sherman. The facility will be a major help for Texas, which is currently experiencing a unique situation in which the demand for electricity is growing, but tight financial markets and low power prices have kept new plants from being built.

“The financing market that was tough as nails two months ago is starting to show signs of movement in our direction,” said Todd W. Carter, Panda Power Funds president. “While it was still a long, hard march to closing, calls were coming in to us from many different quarters to be a part of this project.”

Texas electricity providers are also helping the situation by offering lower electricity rates in a competitive market, giving residents the option to switch energy providers.