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In a significant shift towards cleaner energy, the San Miguel Electric Cooperative (SMEC) in Texas, a utility serving a sparsely populated area with 340,000 customers across 47 counties, is set to transition from its current reliance on lignite coal to renewable energy sources. This development is largely attributed to a substantial investment from the federal government.
Lignite, often labeled as the dirtiest coal, is a soft, brown sedimentary rock with low heat content and high water content. It sits just above peat in the coal hierarchy. The Lignite Energy Council explains that lignite formed from decaying plant matter millions of years ago. Its burning releases harmful substances, notably mercury, contributing to pollution concerns. The San Miguel power plant, operational since 1982, is a significant mercury polluter in Texas.
Lignite Phase-Out and Renewable Transition
In December, SMEC received over $1.4 billion from the US Department of Agriculture’s Rural Utilities Service program, part of the Empowering Rural America (New ERA) initiative. This funding, a component of the Inflation Reduction Act, enables the cooperative to replace its coal-fired plant with a 400 MW solar facility and a 200 MW battery storage system.
“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” remarked Agriculture Secretary Tom Vilsack. He highlighted the Inflation Reduction Act’s role in partnering with rural electric cooperatives to bolster the nation’s energy security and decrease electricity costs. SMEC is among 16 cooperatives qualifying for nearly $8 billion through this program.
Craig Courter, general manager and CEO of SMEC, expressed, “The USDA funding represents a new era for the San Miguel Electric Cooperative, which has long been the backbone of electric generation for generations of South Texans.” He emphasized that the New ERA program will help eliminate greenhouse gas emissions while maintaining affordable power for rural Texans.
SMEC, which currently supplies power to the South Texas Electric Cooperative (STEC), plans to continue its partnership by delivering solar and battery-stored energy. The transition, expected to complete by 2027, includes refinancing lignite-related debts without affecting ongoing mine reclamation efforts, which are crucial for restoring mined lands.
Exploring Geothermal Energy Storage
In addition to battery storage, SMEC is collaborating with Sage Energy to implement a 3 MW Geopressured Geothermal System (GGS) for energy storage. Sage Energy, utilizing deep drilling technology, aims to offer a constant power source independent of weather conditions. CEO Cindy Taff stated, “Once operational, our EarthStore facility in Christine (Texas) will be the first geothermal energy storage system to store potential energy deep in the earth and supply electrons to a power grid.”
This geothermal facility is designed for 6- to 10-hour energy storage with a round-trip efficiency of 70 to 75%. At scale, it will complement renewable energy sources to provide continuous power at a cost-effective rate.
Courter added, “Long duration energy storage is crucial for the ERCOT utility grid, especially with the increasing integration of intermittent wind and solar power generation. We are excited to be part of this innovative project that showcases the potential of geothermal energy storage.”
Policy and Future Considerations
The funding and policy shifts supporting SMEC’s transition may face challenges in the future, given the potential changes in federal priorities towards fossil fuels. Nonetheless, the move towards renewables is an essential step for improving air quality and supporting the health of communities in the 47 counties served by SMEC, illustrating the complex dynamics of energy policy and regional development.
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Original Story at cleantechnica.com