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Avangrid, Inc., a sustainable energy leader and part of the Iberdrola Group, has entered into a Power Purchase Agreement (PPA) with CPS Energy—the nation’s largest community-owned provider of electric and natural gas services. Under this agreement, CPS Energy secures a 161-Megawatt (MW) portion of Avangrid’s Peñascal I wind farm in Kenedy County, Texas, near Baffin Bay.
This PPA builds upon a previous 15-year agreement between the two companies for energy from Peñascal I. CPS Energy’s power offtake has more than doubled, increasing from 77 MW to 161 MW. As a result, CPS Energy will now receive nearly 80% of the power generated by the wind farm. Avangrid’s contribution from Peñascal I can power approximately 41,000 Texas homes.
Peñascal I, the pioneering wind power project on the Texas coast, began commercial operations in 2009. Comprising 84 turbines, it generates a total of 202 MW of renewable energy. The project also provides employment for 16 permanent community members and contributes nearly $30 million in property taxes, benefiting public services like education.
“This is another great example of Avangrid working closely with our partners to continue delivering clean, reliable energy to customers,” said Pedro Azagra, Avangrid CEO. “In this case, we are growing our already strong relationship with CPS Energy to support their growing customer base while managing merchant risk at one of our existing wind facilities. Partnerships like this are critical to supporting a clean energy transition in Texas and beyond.”
“Growing our portfolio of renewable energy brings us closer to realizing our Vision 2027 goals,” said Rudy D. Garza, President and CEO of CPS Energy. “This expansion is an exciting step in our renewable energy commitments and is well-aligned with our approved generation plan.”
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