Concho Valley Solar LLC, a joint venture between Merit SI and Komipo America, Inc., has signed agreements with Targa Resources Corp. to supply low-cost renewable electricity to Targa's natural gas processing infrastructure in West Texas' Permian Basin as of this month. Through this long-term power purchase agreement (PPA), Concho Valley Solar will deliver low-cost, renewable electricity to Targa to support the company's efforts to reduce greenhouse gas emissions.
In North America, Targa Resources Corp. is a leading provider of midstream services. Through its assets, the company provides access to natural gas and natural gas liquids (NGLs) for domestic and international markets with a growing demand for cleaner fuels.
Merit SI is fully focused on maximizing the cost-effectiveness of solar production by providing design/build services and energy asset agreements that require zero capital investment. With years of experience in the power industry, Merit Controls offers advanced, proven grid integration solutions for large-scale commercial, industrial, and utility power grids.
The foundation of Komipo America, Inc. is based on its world-class power plant construction and operation technology, focusing on the production of high quality, stable power through thermal power, wind power, solar power, and fuel cell power.
As for this specific venture, a 160 MWac solar project near San Angelo in Tom Green County, Texas has already gone under construction since the beginning of the quarter, and it is expected to start delivering clean, renewable energy in exactly a year from now, in the fourth quarter of 2022, given nothing unforeseen happens. The project will use high-efficiency bifacial solar photovoltaic (PV) modules to produce clean energy while minimizing effects on wildlife, habitat, and other ecosystem resources.
Additionally, due to Pioneer Natural Resources ownership of part of Targa's Midland Basin gas processing infrastructure, it will also benefit from installing renewable electricity generated through the Concho Valley Solar project, increasing its emissions reduction efforts through renewable energy purchases.
In supporting this project and exploring future joint opportunities, Pioneer and Targa are demonstrating their commitment to leading the way in reducing emissions throughout the Midland Basin.
Concho's project also boasts some other lucrative benefits: by providing reliability services to the grid through an advanced power plant control platform, the project will be able to generate incremental revenue from intermittent renewable power plants. While construction of the facility itself is expected to generate approximately 150 jobs, allowing Tom Green County taxing entities to see increased revenues over the project's lifetime.
