SAN ANTONIO, Texas -- A landmark deal signed by CPS Energy and OCI Solar Power will result in the construction of 400 MW of solar energy, bring several manufacturing facilities that produce solar panel components, and create 805 jobs in San Antonio.
CPS Energy President and CEO Doyle Beneby inked the contract with Tony Dorazio, president of OCI Solar Power, making the 25-year power purchase and economic development agreement official. This unique, first-of-its kind, manufacturing-to-generation contract follows several months of talks between negotiation teams with the utility and its most recent New Energy Economy partners. The 400-MW San Antonio project is the largest in the nation among municipal utilities, and will catapult Texas into the top five U.S. solar producing states.
Providing enough electricity for nearly 70,000 local households—or about 10 percent of San Antonio's customers, the final deal also will deliver:
- new corporate headquarters in San Antonio;
- an estimated $100 million high-tech U.S. manufacturing operation in south San Antonio;
- 800-plus professional and technical jobs with an annual payroll of nearly $40 million; 75 percent of those jobs will be in the renewable energy sector;
- $700 million in annual economic impact;
- $1 billion in construction investment; and,
- a 25-year power purchase agreement.
San Antonio Mayor Julian Castro delivered the keynote address at today's signing, calling it an extraordinary approach that fits perfectly with the city's long-range SA2020 goals of providing more affordable, clean energy and hundreds of jobs for the community.
"San Antonio continues to see economic growth with good-paying, sustainable jobs," said Mayor Castro. "CPS Energy's pursuit of clean energy and energy efficiency has attracted seven clean technology companies and a commitment, thus far, of a million dollars to local education. Those are the kinds of partnerships we welcome as we focus on our city's current and future needs."
"Leveraging our buying power to secure competitive generation resources makes good business sense for several reasons. With 400 megawatts of solar, we attain zero-emissions energy to help hedge against environmental regulations; provide much needed generation during peak demand; and obtain affordable renewables while enhancing job opportunities for our customers and economic development for the entire region," said Beneby.
OCI Solar Power is delving into its first project in Texas with this mega solar agreement, which is estimated to have a projected annual economic impact of $700 million for Greater San Antonio.
OCI Solar Power created a consortium of partners to deliver 400 MW of solar to CPS Energy throughout the 25-year life of the agreement. According to the contract, members of the OCI Solar Power consortium will build facilities in San Antonio to produce components for solar power generation such as modules, trackers and inverters used to supply the North American market. The anchor manufacturer in the consortium is Nexolon America LLC, a subsidiary of Nexolon, a manufacturer of components used in solar panels. Nexolon America LLC played a pivotal role in making the deal a success through its commitment to investing $100 million in building a high-tech manufacturing facility and locating its North American headquarters in San Antonio, in total creating over 400 jobs. All combined, the consortium's efforts on this project will result in more than 800 long-term jobs in addition to the jobs that will be necessary to construct the manufacturing facilities and the solar energy plants.
SOURCE: CPS Energy