A coal plant in Texas will soon transition into a solar + storage facility to provide clean renewable energy to 47 rural South Texas counties.
San Miguel Electric Cooperative Inc. (SMECI) has been awarded a more than $1.4 billion investment by the U.S. Dept. of Agriculture (USDA) Rural Utilities Service (RUS) program, which provides grants and low-interest loans to expand energy that prioritizes greenhouse gas reductions. The Empowering Rural America (New ERA) program is offered through the Inflation Reduction Act.
“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” said Agriculture Secretary Tom Vilsack. “The Inflation Reduction Act’s historic investments enable 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 not-for-profit generation and transmission rural electric cooperative located in Atascosa County, Texas, that operates a mine-mouth lignite-fired power plant. New ERA program funding will assist SMECI in converting its lignite operations to a 400-MW solar and 200-MW battery storage facility.
“The USDA funding represents a new era for the San Miguel Electric Cooperative, which has long been the backbone of electric generation for generations of South Texans,” said Craig Courter, General Manager and CEO. “New ERA program funding will allow us to virtually eliminate our greenhouse gas emissions, while continuing to provide affordable and reliable power to rural South Texans.”
SMECI, which began commercial operation in 1982, currently produces 391 MW of electricity through a wholesale power contract with South Texas Electric Cooperative (STEC), which, in turn, supplies power to its distribution cooperative members who provide retail service to more than 340,000 rural Texas customers. As SMECI converts from lignite to solar, it will enter into a new wholesale power contract with STEC to supply the output of the proposed solar and battery storage facility, which is expected to be operational by 2027.
SMECI will use part of the New ERA funding to refinance debt from its stranded lignite infrastructure. The conversion will not affect SMECI’s ongoing mine reclamation program, which is secured by bonds that will not be released until regulators have determined that the mine reclamation is complete.
Reclamation is a vital part of a mining operation’s culture and – for SMECI – a passion. The cooperative works closely with its landowners to restore mined land to their preferred specifications. This can include pastureland, which uses vegetation, such as grasses, to provide feed benefits to ranch animals 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 providing energy at an affordable rate in a state that continues to grow at an unprecedented pace.”
News item from SMECI
