CPS Energy’s solar RFP generates international interest

CPS Energy’s solar RFP generates international interestLast year, San Antonio’s CPS Energy issued a request for proposal (RFP) for 50 megawatts of solar with the hopes of attracting manufacturing as well—well they just upped the ante. Following the response from the initial RFP, the utility upped it to to 400 megawatts of solar, and now it’s in final negotiations with a solar company with international roots to bring 800 or more jobs to the region.

On Jan 11, the municipal utility announced that it is in discussions with Georgia-based OCI Solar Power, which is primarily owned by Korean semiconductor manufacturer OCI Company, to move its U.S. headquarters to San Antonio. Along with that the company it would attract other companies to the region.

“What we’ve done is, as part of our response to the RFP, put together a consortium of four manufacturers that make different components [of a solar array there],” said Nick Bullinger, chief operating officer of OCI Solar. “The one manufacturer named is Nexolon; it’s the anchor facility. But we’ll also have three other manufacturers that will be moving to San Antonio as well, and they will make components using local manufacturing.”

“The manufacturing facility is what we’re hoping to attract in San Antonio,” said John Moreno, a CPS spokesperson.

The agreement with OCI is not a formal contractor partnership, according to Moreno.

“They have an invitation to negotiate,” he said. “From what we have seen, this is a company we selected to continue negotiations with.”

Under OCI’s proposal, it will develop up to 400 megawatts of solar projects under 25-year power-purchase agreements with CSP Energy.

“We’re expecting this is going to move pretty rapidly over the next few months,” Moreno said.

CPS hopes that OCI will start installing photovoltaic systems in the 2013, and OCI is looking forward to doing business in the state.

“From a solar developer’s perspective, Texas is an attractive market for solar. There’s no strong state mandate, but the sun is very productive. The Western part of the state has some of the highest insolation in the country,” Bullinger said.

He also said that the state’s business friendly, and that its location is accessible to other markets like California, Arizona and New Mexico and has access to the gulf where materials can be shipped from Asia.