Major Expansion of Wind Energy Commitment
Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and part of the Iberdrola Group, announced a significant Power Purchase Agreement (PPA) with CPS Energy. This agreement extends and expands their previous 15-year partnership for energy from Avangrid’s Peñascal I wind farm in Kenedy County, Texas.
Doubling Renewable Energy Output
Under this new PPA, CPS Energy will more than double its power offtake from Peñascal I, increasing from 77 MW to 161 MW. This increase means CPS Energy will now receive almost 80% of the power generated by the wind farm. Avangrid’s energy supply will be sufficient to power approximately 41,000 Texas homes.
“This partnership exemplifies Avangrid’s commitment to delivering clean, reliable energy to our customers,” said Pedro Azagra, Avangrid CEO. “Strengthening our relationship with CPS Energy helps support their expanding customer base and manage merchant risk at our wind facility. Collaborations like this are vital for the clean energy transition in Texas and beyond.”
Aligning with Renewable Energy Goals
Rudy D. Garza, President and CEO of CPS Energy, highlighted the importance of this expansion. “Growing our renewable energy portfolio brings us closer to our Vision 2027 goals,” he said. “This expansion aligns with our renewable energy commitments and our approved generation plan.”
The additional 84 MW of wind power supports CPS Energy’s Vision 2027 plan, which aims to retire 2,249 MW of older generation capacity by 2030. These efforts also align with the City of San Antonio’s Climate Action & Adaptation Plan (CAAP). The CAAP aims to achieve carbon neutrality by 2050 and interim goals of reducing greenhouse gas emissions by 41% from 2016 levels and 71% by 2040.
Peñascal I: A Pioneer in Wind Energy
Peñascal I was the first wind power project on the Texas coast, beginning operations in 2009. The wind farm, featuring 84 turbines, generates a total of 202 MW of renewable energy and supports 16 permanent employees. Since its construction, Peñascal I has paid nearly $30 million in property taxes, funding public services like education.
Avangrid developed the project with minimal environmental impact. Prior to construction, wildlife biologists spent over 4,000 hours studying the site and avian patterns in various weather conditions. These studies ensured Peñascal I’s minimal environmental footprint.
About Avangrid
Avangrid, Inc. aspires to lead the sustainable energy sector in the United States. With headquarters in Orange, CT, and approximately $45 billion in assets, Avangrid operates in 24 states. The company’s primary businesses include networks and renewables. Avangrid owns and operates eight electric and natural gas utilities, serving over 3.3 million customers in New York and New England. Its renewables business manages a diverse portfolio of renewable energy generation facilities nationwide.
Avangrid employs about 8,000 people and has been recognized by JUST Capital as one of America’s best corporate citizens, ranking first among utilities in 2024. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies for the sixth consecutive year by the Ethisphere Institute. Avangrid is part of the Iberdrola Group.
Source：businesswire.com
