CPS Energy has begun negotiations with OCI Solar Power for a power purchase agreement that would see the company acquire 400MW of solar energy while constructing new corporate headquarters and US manufacturing operations in San Antonio, Texas. The OCI Solar Power proposal will see the two entities develop various solar manufacturing facilities in the San Antonio area that will manufacture components for solar power plants, a capital investment of over US$100 million and a 25-year PPA for 400MW of solar generation.
“This proposal would diversify our energy sources in a manner that makes good business sense and meets our objectives. Our goal is to always provide our ratepayers safe, reliable and affordable energy, and wherever possible, bring additional value to our community,” said President and CEO of CPS, Doyle Beneby “As San Antonio becomes a central hub for solar development in the US, there is also a beneficial opportunity for other Texas based municipal utilities to achieve their renewable energy goals by becoming sites for parts of the project.”
The proposal holds a US$1 billion investment for construction, with OCI Solar Power advising of its intent to use local firms for some aspects of the engineering, procurement and construction phases. To facilitate CPS Energy’s request for proposals, OCI Solar Power invited manufacturers from around the industry to be part of its consortium, with Nexolon acting as the anchor manufacturer. As part of its commitment to the consortium Nexolon will build a manufacturing facility and locate its North American headquarters in San Antonio.
While no date has yet been set for the project to begin, OCI Solar Power advised that the solar project will become operational in phases over the next five years. All parties involved advised that they plan to move quickly to negotiate the terms and finalize the agreement.
“In just a few short years, this initiative could help CPS Energy achieve our Vision 2020 goal of attaining 20% or 1,500MW of renewable resources by the end of the decade. It’s a phenomenal opportunity that propels this utility to a leadership position for both wind and solar energy,” stated CPS Energy board chair Derrick Howard.
