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ENGIE, Microsoft Seal Innovative ‘Firm Power’ PPA for 230 MW Wind and Solar in Texas

September 26, 2019

The post ENGIE, Microsoft Seal Innovative ‘Firm Power’ PPA for 230 MW Wind and Solar in Texas appeared first on POWER Magazine.

ENGIE, the world’s largest independent power producer, has signed an innovative volume firming agreement (VMA) with Microsoft that will allow the technology giant to buy “firm” power from wind and solar projects in Texas under a specially structured power purchase agreement (PPA).

The companies on Sept. 24 said the long-term PPA will allow Microsoft to buy a total of 230 MW that ENGIE plans to put online in January 2021 on a fixed, 24/7 basis, to match hourly consumption from a Microsoft data center in Texas. The majority of output will come from the 200-MW Las Lomas wind project in Starr and Zapata Counties in south Texas, but Microsoft will also buy 85 MW from the 200-MW Anson Solar Center project in Jones County, central Texas.

ENGIE and Microsoft on Tuesday also announced a partnership to integrate Microsoft Azure intelligent cloud services with ENGIE’s Darwin energy software to optimize performance of ENGIE’s wind, solar, and wind + solar hybrid assets worldwide.…

Texas’ Impending Reliability Issues With Wind Power

September 20, 2019

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The post Texas’ Impending Reliability Issues With Wind Power appeared first on POWER Magazine.

COMMENTARY

Texas has the most wind capacity of any state, generating about 16% of its electricity from wind. In August, as temperatures rose above 100F and consumers increased their use of air conditioning, Texas’ grid operators struggled to meet the record demand for electricity.

Many of the wind turbines could not operate because the wind was stagnant, a common occurrence on very hot days. As a result, energy costs skyrocketed. In Houston, wholesale power prices spiked 49,000% (to $ 9,000 per megawatt-hour). The Electric Reliability Council of Texas (ERCOT) warned that reserve margins were so low that it might have to institute rolling blackouts, or controlled interruptions of power service. The independent system operator called for the construction of more gas-fired generating plants.

Mary J. Hutzler

Facing a second consecutive year of strain on its grid, ERCOT mandated all available power plants to run flat-out, called on factories to cut power consumption, and imported electricity from Mexico.…

Entergy Texas Breaks Ground on New 993-MW Combined Cycle Plant

February 19, 2019

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Entergy Texas on February 15 began construction of its first new power plant in 40 years. The Montgomery County Power Station (MCPS), located in Willis, will be a 993-MW combined cycle gas turbine plant, adjacent to the existing Lewis Creek Power Plant.

Entergy Texas is part of Entergy Corporation, which provides power to about 3 million customers in Arkansas, Louisiana, Mississippi, and Texas. The company in a statement said “the facility will provide a new source of reliable, low-cost and clean energy to meet the growing power demand across Southeast Texas.” The plant is expected to enter commercial operation by mid-2021.

Sallie Rainer, president and CEO of Entergy Texas, at Friday’s groundbreaking said, “Southeast Texas is growing, and Entergy Texas needs to invest now to power that growth. By providing reliable, affordable power, we can meet our customers’ needs today, while laying the foundation for future growth across our region.”

Entergy Texas has said the new plant, with cleaner and more efficient combined cycle technology, will save its customers about $ 1.7 billion in energy costs over the next 30 years.…

Siemens Cutting 200 Jobs at Texas Service Center

December 12, 2018

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Siemens on December 11 said it would lay off about 200 workers at a gas turbines parts and components service center in Houston, Texas, sometime in late 2019 or early 2020. A company spokesperson made the announcement Tuesday, saying the cuts are due to weak global demand for the company’s turbines.

Siemens in a statement said the decision was “difficult.” The company, in a letter to the Texas Workforce Commission, also said the layoffs were partly due to overcapacity within the company’s network.

Siemens in September said that it would cut 2,900 jobs in Germany to boost the competitiveness of its Power and Gas and Process Industries divisions. The company at the time said the cuts would save about $ 590 million.

Lisa Davis, member of the Managing Board of Siemens AG, in a statement at the time said, “The market for fossil power generation has contracted substantially. Against the backdrop of this structural change, the agreement we’ve reached [with the company’s unions] is critical to improving our competitiveness.”…

Texas Utility Ready to Ramp Up Renewables

March 14, 2018

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The CEO of Texas-based CPS Energy said March 6 that the utility wants to generate at least 50% of its power from renewable sources by 2040, part of a plan that includes the addition of 550 MW of battery storage, as it looks to reduce its dependence on fossil fuels. But the city-owned San Antonio utility will continue to operate coal and natural gas-fired power plants, though the city’s mayor has said he would oppose building more fossil fuel-powered units.

CPS CEO Paula Gold-Williams outlined the company’s “flexible path” strategy in a meeting with the utility’s board of directors on Tuesday. The utility last year announced it would close its two coal-fired units at the 840-MW Deely station (Figure 1) in San Antonio, one of several Texas coal plants being retired this year, though it will continue to operate two natural gas-fired units—the Sommers Gas Plant—at the site, with generation capacity of 892 MW.

1. Closing in 2018. The Deely power plant near San Antonio will be closed in 2018.

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Vistra Closing Two More Giant Uneconomic Coal Plants in Texas

October 17, 2017

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Vistra Energy moved to halt a financial hemorrhage stemming from unprofitable conditions in the Electric Reliability Council of Texas (ERCOT), announcing plans to shutter two more coal-fired power plants—the 1.1-GW Sandow Power Plant (which includes a 2009-built unit) and the 1.2-GW Big Brown plant—in early 2018.

The company’s decision made public on October 13 comes on the heels of an announcement last week by Vistra Energy subsidiary Luminant to shutter its 1.9-GW coal-fired Monticello plant in Titus County.

Vistra Energy said the coal plant closures are necessary because they are “economically challenged in the competitive ERCOT market.” Specifically, it said, “Sustained low wholesale power prices, an oversupplied renewable generation market, and low natural gas prices, along with other factors, have contributed to this decision.”

Terminating Years of Service

“This announcement is a difficult one to make,” said Vistra Energy President and CEO Curt Morgan. “It is never easy to announce an action that has a significant impact on our people. Though the long-term economic viability of these plants has been in question for some time, our year-long analysis indicates this announcement is now necessary.”…