CPS Energy, has purchased 4 power plants, all of which run on natural gas, from ProEnergy, which together have an installed capacity of 1,632 megawatts of electricity, enough to power hundreds of thousands of homes. The acquired plants are located in Harris, Brazoria and Galveston counties and are integrated into the Electric Reliability Council of Texas (ERCOT) market.
The purchase represents a further step in CPS Energy’s strategy to strengthen its generation portfolio with operational and technologically proven assets.
Dual capacity and vision towards hydrogen
The four newly constructed plants are state-of-the-art and have dual-fuel capability, meaning that, although they run on natural gas, they are designed to be able to use a hydrogen blend in the future, a cleaner fuel that would reduce carbon emissions.
In addition, the plants are designed under the “Peaking Plants” concept, designed to start up quickly during times of peak electricity demand, such as extreme heat waves in summer, which improves supply reliability.
Why is this agreement important?
This purchase will allow CPS Energy to avoid the long lead times and cost overruns associated with new plant construction while gaining access to modern infrastructure without the inflationary risks and logistical delays, all while strengthening the energy capacity available to San Antonio and neighboring regions.
They also add a large amount of energy capable of responding quickly to the grid, crucial to avoid blackouts in a region (ERCOT) that has had reliability problems. The option to use hydrogen allows CPS Energy to move toward its emissions’ reduction goals without having to retire infrastructure early.
Planned according to future needs
CPS Energy made a smart investment to ensure that San Antonio residents have reliable, affordable electricity, especially on peak usage days. By purchasing modern plants that are already up and running, it avoids the headaches of new construction and prepares for a future with cleaner energy.
It is as if, instead of waiting years to build your own house, you buy a new house, already furnished and with the original architect as property manager. It is an immediate, efficient and less risky solution.
Source: CPS Energy via PR Newswire
Photo: Rigzone
