Warren Buffett's Berkshire Proposes Building 10 Natural Gas Power Plants in Texas

Warren Buffett [Photo by AP News]

[Asia Economy Reporter Park Byung-hee] Berkshire Hathaway, led by Chairman Warren Buffett, has submitted a plan to the Texas state legislature to build 10 natural gas power plants in Texas, the Wall Street Journal reported on the 25th (local time).

According to the plan proposed by Berkshire, the company will invest $8.3 billion in the construction of the power plants. The plants are scheduled to begin operation by November 2023 at the latest. Additionally, the plants will only operate during times of sharply increased electricity demand, such as during last month's cold wave. Berkshire has stated that it will not compete with existing Texas power companies. Berkshire said it is satisfied with earning the same 9.3% return on investment as current Texas power companies.

Berkshire also stated that it will provide insurance worth $4 billion in case the plants do not operate when needed.

Last month, Texas experienced a severe cold wave, during which half of the state's power plants failed to operate, causing a massive blackout. The blackout lasted for four days, resulting in the deaths of dozens of citizens who could not endure the cold.

Berkshire has shown long-standing interest in Texas power plants. In 2017, it even entered the bidding to acquire Texas power company Oncor.

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