Texas Power Pool surpasses 140MW, releases renewable RFP
- February 19, 2019
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WACO, Texas, Feb. 19, 2019 The Texas Power Pool has received sufficient Letters of Interest to surpass its initial 100 megawatt goal, placing taxpayer-supported public entities within striking distance of a 3-cent per kWh target price to procure 100% Texas-produced renewable wholesale power.
At least 16 entities have submitted non-binding Letters of Interest, including several of the largest cities, school districts, universities, medical centers, and state agencies in Texas. Interested participants will receive bids from renewable generators, but are not required to accept any offers.
The Texas Comptroller's Statewide Procurement Division released an RFP, with the assistance of the State Energy Conservation Office (SECO), selecting the Waco-based Texas Energy Aggregation (TEA) to help public entities source power, including pooled access to longer-term renewable power purchase agreements. TEA released the RFP for the wholesale renewable portion of the pool on February 15. Texas Power Pool is the first new Statewide purchasing option available to public entities to be built around an aggregated wholesale renewable energy buy.
"Wind and solar power are now far cheaper than grid power, but hitting a 3 cent per kWh target takes a large-scale buy, with credit-worthy off-takers, on contracts for 12-plus years," states TEA President, TJ Ermoian. "We are confident we can offer a spectacular value that will satisfy both budgetary and sustainability goals, because money is the greenest thing most people understand."
Dub Taylor, Director of SECO said, "Public entities want low cost power and predicable long term pricing. Like many large corporations and businesses, they are expressing an increased desire to tap Texas' abundant renewable energy resources. We believe that the Texas Power Pool will continue to grow and drive down prices for everyone in the pool."
Mike Bendewald, COO for Texas Energy Aggregation, says "An unusual benefit of this contract is it can immediately provide sustainability benefits and begins delivering financial benefits on the customer's next retail power contract, even if those contracts extend years into the future. We anticipate that soon, more public customers nationally will demand similarly de-risked renewable purchase agreements."
Responses to the RFP for wholesale renewable power are due by late April. TEA anticipates more Letters of Interest before April. As milestones are achieved for additional megawatts, pricing will be further discounted for all members.
Media inquiries, contact TJ Ermoian, TJ.Ermoian@texasenergyabc.com, 254-723-2231
SOURCE Texas Energy Aggregation