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South Texas Electric Cooperative launches tender for 500 MW of dispatchable capacity

South Texas Electric Cooperative is seeking proposals for the acquisition or purchase of energy for 500 MW of dispatchable capacity, aiming to strengthen long-term supply security in the ERCOT region.

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South Texas Electric Cooperative, Inc. (STEC) has launched a tender to secure up to 500 megawatts (MW) of dispatchable electricity generation capacity and associated energy. The company stated it is seeking long-term supply solutions to ensure the reliability of its portfolio for its members in the ERCOT region. Interested companies can review the tender specifications on STEC’s official website.

Acquisition and long-term purchase agreements
STEC’s tender covers the acquisition of dispatchable power plants under development, under construction, or already operational. For facilities not yet in service, the cooperative prefers a purchase and sale agreement to be concluded immediately, with the transaction finalised upon the commercial operation of the plant. However, STEC will consider other types of transactions to maximise the flexibility of offers submitted.

The tender specifications do not restrict eligible technologies or fuel types, provided the unit is dispatchable. The proposed facilities must be located within the area managed by Electric Reliability Council of Texas (ERCOT), preferably near or within the service territory of a STEC member. The plants must either be operational or have a planned commercial operation date by 1 December 2028.

Contract terms and deadlines
For long-term Power Purchase Agreement (PPA) proposals, STEC will accept offers for terms of 20 to 30 years. Participants will be required to deliver dispatchable capacity to the cooperative, with the delivery starting between 1 June 2027 and 1 December 2028. Accepted contractual arrangements include all-in PPAs, tolling agreements, or other market contract structures.

Companies wishing to participate must submit their notice of intent to respond to the tender by 6 August 2025. Initial proposals are due by 10 September 2025. PRNewswire reported this information on 14 July 2025.

According to STEC, “all dispatchable generation solutions and contract structures are open to competition in the ERCOT market.” The cooperative remains attentive to market developments in order to optimise its long-term energy supply conditions.

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