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USDA announces $1.4 billion solar, battery energy project in rural South Texas to cut climate pollution

The USDA has announced a $1.4 billion investment to transition San Miguel Electric Cooperative in rural South Texas to a 600-megawatt solar and battery energy system, aiming to reduce climate pollution and create jobs by 2027.

The United States Department of Agriculture recently announced that San Miguel Electric Cooperative Inc., located in Christine, Texas, in Atascosa County, just outside of San Antonio, will transition its operations to produce 600 megawatts of energy using solar panels and a battery energy storage system (BESS).

The project is expected to reduce climate pollution by 1.8 tons annually, equivalent to removing 446,000 cars from the road each year, says USDA.

The project with the San Miguel Electric Cooperative plans to use more than $1.4 billion investment to procure 600 megawatts of renewable energy through solar voltaic panels and a battery energy storage system to power 47 counties across rural South Texas. The clean project also hopes to support as many as 600 jobs.

This is part of the over $4.37 billion in clean energy investments through the United States Department of Agriculture’s (USDA) Empowering Rural America (New ERA) Program, which has rural electric cooperatives supporting the economy via job creation, lowering electricity costs for businesses and families and reducing climate pollution. The New ERA was made possible by President Joe Biden’s Inflation Reduction Act, which was the largest investment in rural electrification since President Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936.

San Miguel plans to convert its operations to a 400-megawatt solar generation facility and 200-megawatt battery storage facility, and the transition should be complete by 2027. Currently, San Miguel produces 391 megawatts of electricity through a contract with South Texas Electric Cooperative (STEC).

“USDA is committed to enhancing the quality of life and improving air and water in our rural communities,” Secretary Tom Vilsack says in a news release. “The Inflation Reduction Act’s historic investments enable USDA to partner with rural electric cooperatives to strengthen America’s energy security and lower electricity bills for hardworking families, farmers and small business owners.”

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A View From HETI

Enbridge Inc. is now generating 130 megawatts of energy from its Orange Grove solar project near Corpus Christi. Photo courtesy Enbridge

Canadian energy company Enbridge Inc., whose gas transmission and midstream operations are based in Houston, has flipped the switch on its first solar power project in Texas.

The Orange Grove project, about 45 miles west of Corpus Christi, is now generating 130 megawatts of energy that feeds into the grid operated by the Electric Reliability Council of Texas (ERCOT). ERCOT supplies electricity to 90 percent of the state.

Orange Grove features 300,000 solar panels installed on more than 920 acres in Jim Wells County. Construction began in 2024.

Telecom giant AT&T has signed a long-term power purchase agreement with Enbridge to buy energy from Orange Grove at a fixed price. Rather than physically acquiring this power, though, AT&T will receive renewable energy certificates. One renewable energy certificate represents the consumption of one megawatt of grid power from renewable energy sources such as solar and wind.

“Orange Grove is a key part of our commitment to develop, construct, and operate onshore renewable projects across North America,” Matthew Akman, executive vice president of corporate strategy and president of renewable power at Enbridge, said in 2024.

Orange Grove isn’t Enbridge’s only Texas project. Enbridge owns the 110-megawatt Keechi wind farm in Jacksboro, about 60 miles northwest of Fort Worth, and the 249.1-megawatt Chapman Ranch wind farm near Corpus Christi, along with a majority stake in the 203.3-megatt Magic Valley I wind farm near Harlingen. The company’s 815-megawatt Sequoia solar project, east of Abilene, is scheduled to go online in early 2026. Enbridge has signed long-term power purchase agreements with AT&T and Toyota North America for energy produced by Sequoia.

During a recent earnings call, Enbridge President and CEO Greg Ebel said that given the “unprecedented demand for power generation across North America,” driven largely by explosive growth in the data center sector, the company expects to unveil more renewable energy projects.

“The policy landscape for renewables is dynamic,” Ebel said, “but we think we are well-positioned with our portfolio of late-stage (projects).”

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