Dive Brief:

The Texas Renewable Energy Co-op (TREC) has received multiple bids for wholesale electricity below its $0.03/k Wh target on 12-year contracts, according to the state-selected facilitator tapped to develop a new procurement option for municipal entities, school districts, utility districts, water authorities, state agencies and universities.

target on 12-year contracts, according to the state-selected facilitator tapped to develop a new procurement option for municipal entities, school districts, utility districts, water authorities, state agencies and universities. Texas Energy Aggregation (TEA) was selected by the Texas Comptroller's Statewide Procurement Division to facilitate a new "renewable purchasing solution" sponsored by the State Energy Conservation Office.

TEA officials say the bids highlight the power of aggregating customer demand, though they also warn "record-low prices" could begin drying up heading into January, when renewable energy tax credits begin to drop off. TREC is a rebranding of the Texas Power Pool, which launched in January.

Dive Insight:

TEA says it continues to pick up subscribers and more than 20 public entities in Texas have signed letters of interest representing over 150 MW of minimum electricity load, including "some of the largest cities, universities, hospitals and school districts in the state."

The program aims to reduce costs for all subscribers as new volume benchmarks are reached.

"It's an upside-down process we're using," TEA President TJ Ermoian told Utility Dive. "Developers just hound us because they know who we're buying energy for ... they're all looking for large credit-worthy off-takers. We've gone and gotten the most desirable loads in a really hot market for wind and solar both."

TEA Managing Partner Mike Bendewald says they have designed a "fully de-risked, wholesale renewable product" that allows customers to continue purchasing retail grid power in shorter increments, while also accessing fixed-cost, long-term renewable power.

"There's a price for each volume of aggregation tier," Bendewald said, "depending on how many subscribers sign up." The big price drop occurs between 50 MW and 100 MW, he added.

TEA will select a winner by the end of May, and customers will have until the middle of July to sign contracts.