Avangrid, Inc., a major energy company and part of the Iberdrola Group, has expanded its existing Power Purchase Agreement (PPA) with CPS Energy by adding 159.2 megawatts (MW) of capacity from its Peñascal wind power project in Texas. With this addition, CPS Energy—recognized as the largest municipally-owned provider of electric and natural gas services in the United States—has now doubled its total offtake from Avangrid, increasing from 160.8 MW to 320 MW.
The additional power capacity from Peñascal was connected to CPS Energy’s generation system on April 1 and is expected to supply electricity to around 40,000 additional homes. This expansion comes at a crucial time as energy demand typically increases during the warmer summer months.
The Peñascal project, located in Kenedy County just south of Baffin Bay, is made up of two phases with a total capacity of 401 MW. It is capable of powering approximately 100,000 homes using only wind energy, without the need for any water, making it a sustainable and resource-efficient power source. With the updated agreement, CPS Energy will now receive about 80 percent of the total electricity generated at Peñascal.
Peñascal I began commercial operations in 2009, followed by Peñascal II in 2010. Together, they support 32 permanent staff who are responsible for the ongoing operation and maintenance of the wind farm. Since becoming operational, the Peñascal facility has contributed around $50 million in property tax payments to the local area. These funds play an important role in supporting various public services, including education and community infrastructure.
Pedro Azagra, Avangrid CEO, said in a statement, “Avangrid’s relationship with CPS Energy grows even stronger with this expanded power contract. Demand for electricity is growing from coast to coast, and we are glad to see this project serving communities in and around San Antonio. Projects like Peñascal are helping ensure we meet the growing demand for energy in Texas and support the reliability of the local electrical grid while bolstering the state’s reputation as a leader in American power production.”
Rudy D. Garza, President & CEO of CPS Energy, stated, “CPS Energy’s expanded relationship with Avangrid is a testament to our Vision 2027 Plan, a comprehensive and diverse generation portfolio that enhances our capacity to serve a growing community. This additional investment in wind power allows us to continue to provide reliable and sustainable energy at an affordable price for our customers.”
Avangrid continues to invest in clean energy in Texas, where it currently owns and operates seven renewable energy projects. Among these is the newly completed True North Solar project located in Falls County. Altogether, Avangrid’s energy facilities in Texas have a combined capacity of nearly 1.6 gigawatts (GW), which is enough to provide electricity for approximately 400,000 homes. Over the years, these projects have also generated more than $115 million in property tax revenue, contributing to local economies and public development.
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