ERCOT Capacity Additions 2026: New Gas Plants, Battery Storage, and Vendor Opportunities

The ERCOT generation interconnection queue held 2,008 active requests totaling 453,562 MW as of February 28, 2026. Gas capacity in the queue surpassed wind for six consecutive months, growing 271 percent since the Texas Energy Fund passed in 2023. That reversal, from a queue dominated by renewables to one where gas is the fastest growing fuel type, defines the vendor opportunity in ERCOT for the next three to five years. The Texas legislature appropriated $9 billion for the Texas Energy Fund. The PUC has allocated $2.65 billion in loans supporting 3,564 MW of new dispatchable generation, with 13 additional applications covering 7,211 MW still in due diligence review.

For vendors selling gas turbines, generators, transformers, switchgear, balance of plant equipment, EPC services, or battery storage systems, this is the largest single wave of new generation procurement in ERCOT's history. The projects are named, the capital is allocated, and the EPCs are under contract. The question is which projects are moving, who is building them, and where the procurement decisions are being made.

Named gas projects in the pipeline

CPV Basin Ranch in Ward County is a 1,350 MW combined cycle plant using GE Vernova 7HA.03 turbines, backed by approximately $1.12 billion in TEF funding, with Gemma Power Systems as EPC contractor and a 2029 commercial operation date. Sandow Lakes Energy Company is building a 1,200 MW combined cycle plant in Lee County featuring two Siemens SGT6-9000HL turbines, also with Gemma Power Systems as EPC. Both projects received notice to proceed in October 2025.

Vistra is expanding its Permian Basin Power Plant by 860 MW with new gas combustion turbines, targeting Q4 2027. Separately, Vistra acquired 10 gas plants for approximately $4 billion in January 2026. NRG Energy has the T.H. Wharton facility (415 MW, backed by a $216 million TEF loan) near completion in Houston, and Greens Bayou 6 (455 MW, $617 million) in Harris County targeting 2028. Calpine's Pin Oak Creek Energy Center (460 MW gas peaker, $464 million with $278.3 million TEF loan) adjacent to Freestone Energy Center was expected operational before summer 2026.

LCRA's Timmerman Power Station (380 MW, reciprocating internal combustion engine technology) in Caldwell County came online in April 2026, earning a $22.56 million TEF bonus grant for meeting its commercial operation deadline. Entergy Texas is building two plants: Legend Power Station (754 MW combined cycle, hydrogen capable, $1.46 billion) in Port Arthur and Lone Star Power Station (453 MW combustion turbine, hydrogen capable, $735 million) in Cleveland, both targeting 2028. NextEra filed for a 5,200 MW gas facility in Anderson County at a projected cost of $16 billion.

The capital figures across these named projects total over $25 billion in announced investment for gas generation in ERCOT. Every project requires turbines, generators, heat recovery steam generators, transformers, switchgear, distributed control systems, cooling systems, and civil construction. Every project will need commissioning services and will enter maintenance cycles within its first years of operation.

Texas Energy Fund allocations

The Texas legislature created the Texas Energy Fund in 2023 with an initial $5 billion appropriation for fiscal years 2024 through 2025. A second appropriation of $4 billion for fiscal years 2026 through 2027 brought the total to $9 billion. The PUC has allocated $2.65 billion in loans supporting 3,564 MW of new dispatchable generation. Thirteen additional applications covering 7,211 MW are in due diligence review. The Outside ERCOT Generation Program (OEGP) covers 29 eligible projects totaling $964.5 million. Texas also created a separate $350 million Nuclear Energy Fund.

TEF loans carry a 3 percent interest rate over 20 years, which makes them significantly cheaper than commercial project finance for gas generation. The first TEF backed project to reach commercial operation was NRG's T.H. Wharton facility. LCRA's Timmerman was the first to earn a TEF bonus grant for on time delivery. All 18 TEF projects totaling over 7 GW have submitted Full Interconnection Study applications to ERCOT. The first TEF project to receive Part 1 Approval to Energize was Pin Peaking in November 2025.

For vendors, the TEF pipeline is significant because the funding is committed, the projects have regulatory backing, and the timelines are compressed. TEF projects carry delivery incentives (bonus grants for on time completion) and penalties for delay. This means procurement decisions are being made now, not deferred. Equipment lead times for gas turbines, generators, and major electrical components run 12 to 18 months or longer, which puts the procurement window for 2028 and 2029 commercial operation dates squarely in 2026 and 2027.

Battery storage pipeline

ERCOT battery storage capacity entered 2026 at 13.9 GW and crossed 15 GW by the end of Q1 2026, adding 20 new projects totaling 1.1 GW in the largest first quarter on record. Named projects in the 2026 pipeline include Ferdinand BESS (200 MW, 800 MWh, developed by Eolian, H1 2026), Padua 2 BESS (150 MW, 600 MWh, Eolian, H1 2026), Gunnar Reliability (150 MW, 300 MWh, GridStor, Hidalgo County, end of 2026), Bimergen's 79.2 MW portfolio across eight projects in ERCOT South (late 2026), and SolarMax Technology's Corpus Christi BESS (600 MWh, $258.1 million EPC contract).

Battery storage procurement is a distinct channel from gas generation. The equipment stack is different (lithium ion cells, inverters, battery management systems, HVAC for thermal management, fire suppression) and the vendor base has limited overlap with gas turbine suppliers. But the site work, electrical interconnection, transformers, and civil construction do overlap. Vendors selling into ERCOT generation projects should track both pipelines because the same EPCs, electrical contractors, and civil firms work across both.

EPC contractors and equipment suppliers

Two EPC firms dominate the named gas pipeline. Gemma Power Systems, a subsidiary of Argan, holds EPC contracts for both the 1,200 MW Sandow Lakes plant and the 1,350 MW CPV Basin Ranch project, with notice to proceed on both in October 2025. That is 2,550 MW of combined cycle construction under a single EPC. Kiewit and TIC are the EPC partners for the NRG and GE Vernova multi site venture covering 5,400 MW across ERCOT and PJM, with the first 1.2 GW using two GE Vernova 7HA turbines. Bechtel holds the EPC contract for Cold Creek Solar and Storage (430 MW solar plus 340 MWh storage). SolarMax Technology is the EPC for the Navboot Corpus Christi BESS at $258.1 million.

On the turbine supply side, GE Vernova and Siemens Energy are capturing the bulk of new ERCOT gas orders. GE Vernova's 7HA platform is specified for CPV Basin Ranch and the NRG multi site program. Siemens Energy's SGT6-9000HL is specified for Sandow Lakes, and the company is supplying 1.1 GW of gas capacity for the Fermi America data center campus in Amarillo. Siemens is also investing $23 million to expand its Deer Park service facility to support the growing Gulf Coast installed base.

Reserve margins and market structure

The December 2025 Capacity, Demand, and Reserves report projects an 18.3 percent summer 2026 planning reserve margin at peak load, or 20.9 percent at peak net load. Peak load growth runs from 90 GW in 2026 to 117 GW by 2031. Firm capacity grows from 100 GW to 133 GW over the same period. Reserve margins cross into negative values in 2028 under protocol prescribed assumptions, which means the capacity additions in the current pipeline are not a buffer. They are required to keep the lights on.

The PUC shelved the Performance Credit Mechanism on December 19, 2024. Chairman Gleeson determined that the PCM as designed would not provide needed reliability benefits. ERCOT and the Independent Market Monitor analyzed that with a $1 billion annual cap, the PCM would add only approximately 780 MW, far short of the 10,000 MW gap identified. The focus shifted to real time co optimization (already deployed) and dispatchable reliability reserve service. A triennial reliability assessment is now required starting in 2026.

For vendors, the negative reserve margin projection in 2028 is the most important number in this analysis. It means every project in the TEF pipeline, every behind the meter data center gas plant, and every battery storage installation is load bearing for grid reliability. Cancellations or significant delays in the current pipeline create reliability risk that ERCOT has no mechanism to backfill. This gives projects commercial urgency and compresses procurement timelines.

What this means for vendors

The ERCOT capacity addition pipeline is defined by three characteristics that matter for vendor strategy. First, the projects are named, capitalized, and in most cases under EPC contract. This is not a speculative pipeline. CPV Basin Ranch, Sandow Lakes, Vistra Permian, NRG Greens Bayou, Entergy Legend and Lone Star, and the NextEra Anderson County project represent over $25 billion in committed or projected capital. Second, the TEF provides low cost financing with delivery incentives, which compresses procurement timelines and penalizes delay. Third, the 2028 negative reserve margin projection means the grid needs these projects. There is no scenario in which ERCOT defers this build.

The vendor opportunities span gas turbines and generators (GE Vernova, Siemens Energy dominating new orders), heat recovery steam generators, transformers and switchgear, distributed control systems, cooling and water treatment, civil and structural construction, battery cells and inverters for the parallel storage pipeline, and ongoing maintenance and MRO services once plants enter operation. Vendors selling into Gulf Coast industrial markets already have geographic proximity and in many cases existing relationships with the EPCs and operators building these plants.

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Frequently asked questions

How large is the ERCOT generation interconnection queue?

As of February 28, 2026, the queue held 2,008 active requests totaling 453,562 MW. Gas capacity surpassed wind for six consecutive months, growing 271 percent since the Texas Energy Fund passed in 2023. The large load queue adds 232,000 MW in process with approximately 140,000 MW additional pending, for an effective total of approximately 380,000 MW.

What is the Texas Energy Fund and how much has been allocated?

The Texas legislature appropriated $9 billion ($5 billion for FY 2024 through 2025, $4 billion for FY 2026 through 2027) to finance new dispatchable generation in ERCOT. The PUC has allocated $2.65 billion in loans supporting 3,564 MW, with 13 additional applications covering 7,211 MW in due diligence review. Loans carry a 3 percent interest rate over 20 years.

Which gas power plants are under construction in ERCOT?

Named projects include CPV Basin Ranch (1,350 MW, Ward County, 2029), Sandow Lakes (1,200 MW, Lee County, 2028), Vistra Permian expansion (860 MW, Q4 2027), NRG Greens Bayou (455 MW, 2028), Pin Oak Creek (460 MW, before summer 2026), LCRA Timmerman (380 MW, online April 2026), Entergy Legend (754 MW, Port Arthur, 2028), Entergy Lone Star (453 MW, Cleveland, 2028), and NextEra Anderson County (5,200 MW).

What is the ERCOT battery storage pipeline?

ERCOT battery storage crossed 15 GW by end of Q1 2026, adding 20 new projects totaling 1.1 GW in the largest first quarter on record. Named 2026 projects include Ferdinand BESS (200 MW/800 MWh), Padua 2 BESS (150 MW/600 MWh), Gunnar Reliability (150 MW/300 MWh), Bimergen 79.2 MW portfolio, and SolarMax Corpus Christi (600 MWh, $258.1 million EPC).