The Texas city of San Antonio looks set to become a U.S. solar power stronghold, with CPS Energy negotiating a power purchase agreement (PPA) with one of the nation’s largest solar developers to install 400-megawatts (MW) of solar projects in and around the city.
OCI Solar was one of several clean energy companies to respond to CPS Energy’s offer, but secured the opportunity to negotiate the 25-year PPA after partnering with South Korean manufacturing company, Nexolon – a manufacturer of components used in solar panels – and agreeing to move the company’s headquarters to San Antonio.
Under the terms of the PPA, OCI Solar would invest over $100 million to build several utility-scale solar energy plants, using dual-tracking solar technology. As part of its commitment to the consortium, Nexolon would build a solar parts manufacturing facility using local expertise and relocate its North American Head office to Texas.
The 400MW solar project would provide pollution-free power for over 90,000 San Antonio households and create 800 local construction and operations jobs with an annual payroll of nearly $40 million.
CPS Energy is the USA’s largest electric utility and the company has committed to a 20 percent renewable energy target by 2020.
“In just a few short years, this [San Antonio] initiative could help CPS Energy achieve our Vision 2020 goal of attaining 20 percent or 1,500 MW 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,” said CPS Energy Board Chair, Derrick Howard.
San Antonio Mayor Julián Castro said the ultimate economic benefit of solar development to his city could reach $700 million and praised the OCI Solar project for contributing to the citywide, aspirational goals of SA2020 – a raft of measures which includes a 10 percent increase in New Energy employment in the city.
“This accelerates San Antonio’s leadership in the New Energy Economy, and provides the kind of good-paying, brainpower jobs that are becoming the staple of our local job-creation efforts.” Mayor Castro said. “San Antonio can be for the New Energy Economy what Silicon Valley is to software and Boston is to biotech.”
Construction of the first solar plant is expected to begin in 2013, with additional facilities built through to 2016.
