For years, oil and gas companies in West Texas have clamored for greater access to the grid. Powering their operations with electricity rather than diesel is cheaper and more efficient. The Permian Basin could demand an additional 26 gigawatts of electricity by 2038, which is like adding another Houston and then some, according to forecasts last year from the Electric Reliability Council of Texas, the state’s power grid operator. Oil and gas electrification accounts for more than half of that expected growth.

Vistra plans to build two new natural gas power plants in the Permian Basin/Monahans area in response to demand for electricity and other growth in West Texas. The two new power plants total 860 megawatts in capacity, which is enough electricity for approximately 215,000 homes during peak usage hours. They’re expected to begin operating in 2028. In total, Vistra expects the two projects to cost close to $950 million. “Vistra’s bold investment in the Permian Basin will reinforce our state’s electric grid, spur jobs, and drive regional economic growth for years to come,” said Gov. Greg Abbott.

Competitive Power Ventures (CVP) received their air permits from the Texas Commission on Environmental Quality (TCEQ) in 2025 for their 1,350-megawatt natural gas power plant in Ward County. The power plant is large enough to power the equivalent of 850,000 homes and is set to receive 50 million cubic feet of gas daily from Coterra Energy om a 7 year agreement. The plant is slated to begin power generation in the fourth quarter of 2028.