San Antonio is soon to be the home of the largest public utility solar project in the United States. The 25-year plan will create five solar plants that produce a total of 400 megawatts of power, which is enough to power 130,000 typical U.S. households. OCI Enterprises and ERCAM Energy of Spain, a leader in the solar energy market, created a joint venture to complete the operation with CPS Energy, San Antonio’s energy utility company. Instead of receiving praise, however, the City of San Antonio, particularly its mayor, has received some harsh accusations regarding the project.
CNN aired a special that attacked Mayor Julian Castro for partnering with a foreign company, saying this decision would “send hundreds of millions of dollars in profits from [the] solar energy deal to South Korea.” The clip went on to criticize OCI Enterprises’ lack of experience in solar power and claimed the company quoted a higher price than several American companies.
Mayor Castro spoke openly about the project and confronted the accusations in several interviews the following Tuesday. He explained that San Antonio based the decision on price, experience, and jobs for San Antonians. "The firm that got this, OCI Solar, is moving its corporate headquarters to San Antonio," Castro said. "It does have a Korean parent company, but the company that we're actually dealing with is American OCI Solar."
“These are skilled and professional jobs,” said Frank Almaraz, vice president of corporate development and planning for CPS Energy. “We’re not uprooting companies and bringing them here. They’ll be doing job fairs here. It should be a real boost to employment here.”
The partnership will create 800 permanent jobs in San Antonio with an average salary of $47,000, which will result in an annual pay roll of $40 million. These are jobs that would be going to Wyoming if the city had chosen to use coal instead of solar.
In addition to creating jobs in San Antonio, OCI Enterprises’ decision to partner with ERCAM Energy will bring 12 years of solar energy experience to the table and make San Antonio a leader in renewable energy.
This new project will reduce the amount of power used from coal plants, which means that San Antonians will be less at risk for respiratory, cardiovascular, and neurological diseases.
So what about pricing? CNN’s Tim Rowlands claims that OCI’s bid was actually a higher cent per kilowatt hour than competitors. The reality is that calculating the true costs of a project of this caliber is never easy. The cost of land for the solar farm and the manufacturing site’s location are also critical factors. Also, CPS Energy does not publicly disclose pricing, so it is unclear where CNN obtained the numbers for this segment. CPS CEO Doyle Beneby has only revealed that the price is “very, very competitive.”
CNN needs to review their facts. San Antonio’s priorities are in the right place: cleaner air and more jobs for San Antonio.