A coal-fired power plant in Texas will soon transition to a solar and storage facility to provide clean renewable energy to 47 rural counties in South Texas.
San Miguel Electric Cooperative Inc. (SMECI) has received an investment of more than $1.4 billion from the U.S. Department of Agriculture’s (USDA) Rural Utilities Service (RUS) program, which provides grants and low-interest loans to expand priority energy expansion given to the reduction of greenhouse gases. Empowering Rural America (New era) program is offered through the Inflation Reduction Act.
“USDA is committed to improving the quality of life and improving the air and water in our rural communities,” said Secretary of Agriculture Tom Vilsack. “The Inflation Reduction Act’s historic investments will allow USDA to partner with rural electric cooperatives to strengthen America’s energy security and lower electricity bills for hardworking families, farmers and small business owners.”
San Miguel is a nonprofit rural electric cooperative based in Atascosa County, Texas, that operates a mine mouth brown coal power plant. New funding from the ERA program will help SMECI convert its lignite operations to a 400 MW solar energy storage facility and 200 MW battery.
“The USDA funding represents a new era for the San Miguel Electric Cooperative, which has long been the backbone of electricity generation for generations of South Texans,” said Craig Courter, general manager and CEO. “New funding from the ERA program will allow us to virtually eliminate our greenhouse gas emissions while continuing to provide affordable and reliable energy to rural South Texans.”
SMECI, which began commercial operations in 1982, currently produces 391 MW of electricity through a wholesale electricity contract with the South Texas Electric Cooperative (STEC), which in turn supplies power to the members of the distribution cooperatives that provide retail services to more than 340,000 rural residents . Texas customers. As SMECI transitions from lignite to solar, it will enter into a new wholesale energy contract with STEC to supply production from the proposed solar and battery storage facility, which is expected to be operational in 2027.
SMECI will use part of the New ERA financing to refinance the debt of its stranded lignite infrastructure. The conversion will not affect SMECI’s ongoing mine reclamation program, which is backed by bonds that will not be released until regulators determine that the mine reclamation is complete.
Reclamation is an essential part of a mining company’s culture and – for SMECI – a passion. The cooperative works closely with its landowners to restore mined land to their preferred specifications. This may include pasture, where vegetation, such as grasses, is used to feed livestock on the farm and build soil stability.
“San Miguel will continue to be an integral part of the energy needs of the South Texas communities we have served since 1982,” said Courter. “With this conversion, we look forward to many more years of delivering energy at an affordable rate in a state that continues to grow at an unprecedented pace.”
News item from SMECI
