AUSTIN, Texas — Austin Energy announced on Thursday they will be acquiring a Nacogdoches generating facility from Southern Power for $460 million.
The wood waste biomass-fueled power plant currently provides 100 megawatts of renewable energy under a 20-year power purchase agreement and the transaction will help Austin Energy avoid approximately $275 million in additional costs in the agreement.
“Acquiring the biomass plant relieves our obligation to make escalating capacity payments to a third party and, over time, reduces the associated cost impacts to our customers,” said Jackie Sargent, Austin Energy’s general manager. “This transaction is consistent with our efforts to manage our portfolio of generation resources in a responsible and cost-effective manner.”
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Austin Energy said they have a target of offsetting 65 percent of its customers' energy needs through renewable resources by 2027. In 2018, Austin Energy said they were able to build up to an offset of 28 percent of their energy through renewable resources for their customers.
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