San Miguel Electric Cooperative, Inc. to Leverage New Low-Emission Energy Sources at its South Texas Power Plant
Innovations Will Include Geothermal, Solar and Battery Storage
There have been several historical developments recently at our not-for-profit generation and transmission rural electric cooperative here in Atascosa County, Texas. As many of you know, we have been operating a mine-mouth lignite-fired power plant since 1982, delivering reliable, affordable electricity to rural South Texans.
In August, we entered into a first-of-its-kind geothermal energy partnership with Sage Geosystems Inc. (Sage), which will launch its EarthStore™ facility at San Miguel. This will be the first project in Texas to utilize the earth’s natural capacity for energy storage to produce clean, sustainable, and dispatchable electricity on demand. Sage’s technology offers a reliable and resilient power source – independent of weather conditions and not reliant on wind or sunshine.
And now, we are proud to announce another key advancement.
The San Miguel Electric Cooperative, Inc. (SMECI) has been named a finalist for a United States Department of Agriculture (USDA) Rural Utilities Service (RUS) program that would provide 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.
If awarded the New ERA program funding, SMECI will convert its lignite operations to a 400 megawatt (MW) solar generation and 200 MW battery storage facility, providing clean, reliable, and affordable renewable energy to rural Texans.
The funding would allow SMECI to virtually eliminate its greenhouse gas emissions.
We currently produce 391 MW of electricity to a service area spanning 47 South Texas counties. We do so 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. While the STEC Wholesale Power Contract extends through 2037 and can be continued further, depending on lignite coal availability, the supply of lignite-fired electricity will be discontinued earlier if San Miguel is awarded the New ERA funding.
If SMECI can convert 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 has long been – and will always be – a vital part of the communities that we serve. These innovative energy transition programs will allow us to continue providing rural South Texans with reliable energy at an affordable rate well into the future.
Craig Courter, General Manager/CEO
We are immensely proud of recent historic developments at the San Miguel Electric Cooperative, Inc. (SMECI). From its partnership with SAGE Geosystems, Inc. to its being named as a finalist for the USDA’s New ERA program, SMECI has demonstrated once again its commitment to delivering reliable, affordable energy to rural South Texans.
SMECI’s long legacy of careful stewardship and dedication to safety and environmental compliance will combine with these innovations to open a new chapter of harnessing renewable energy during a time of unprecedented demand.
Kenneth White, SMECI Board of Directors President