Earlier this week, we reported that Texas utility, CPS Energy, is adding solar to its water treatment plant in San Antonio, pushing the city to the lead in Texas for solar.
Today, we hear CSP closed a bigger solar deal which will bring solar manufacturing to its service area in addition to 400 MW of solar.
OCI Solar won the contract to own, build and operate 400 MW of solar across a range of locations and will sell the energy to the utility under a 25 year power purchase agreement. The projects include a 35 MW plant and three, 105 MW plants and should be finished in four years.
Part of the deal is to build a $100 million manufacturing plant that makes components for the 400 MW solar project and for the North American market. OCI and Nexolon - a S. Korean-based company that's building the factory - will also set up headquarters in the city.
The $1 billion investment in the project is expected to have an annual economic impact of $700 million.
Originally CPS Energy had much smaller plans, but it decided to take advantage of rock bottom solar prices. When the bids came in, it became clear that CSP could quickly diversify renewable energy sources beyond wind.
CPS plans to have 1500 MW of renewable energy installed in its service territory by 2020.