South Texas Electric Cooperative Inc. (STEC) has thrown down the gauntlet, issuing a request for proposals (RFP) that could reshape the region’s energy landscape. The cooperative is seeking up to 500 megawatts (MW) of firm, dispatchable capacity and associated energy, a move that underscores the growing demand for reliable power in the Electric Reliability Council of Texas (ERCOT) region.
STEC’s RFP is a call to arms for developers and operators of dispatchable generation facilities. The cooperative is open to proposals for facilities in development, construction, or operation, with a preference for those that can enter into a “Purchase and Sale Agreement” now and finalize the acquisition upon commercial operation. STEC’s flexibility extends to the type of generation technology and fuel type, as long as the facility is located within the ERCOT region and preferably near or within the service territory of one of STEC’s nine member cooperatives.
The RFP also invites proposals for power purchase agreements (PPAs) with terms of 20 to 30 years, under which the participant would agree to deliver dispatchable power to STEC between June 1, 2027, and December 1, 2028. STEC is open to all-in PPAs, tolling agreements, or other contract structures, demonstrating a willingness to adapt to the market’s needs.
This RFP is a significant development in the energy sector, as it highlights the increasing importance of dispatchable capacity in ensuring grid reliability. As Texas continues to experience rapid population growth and increased demand for electricity, the need for reliable, dispatchable power sources becomes ever more critical. STEC’s move could spur investment in new generation facilities and encourage innovation in dispatchable technologies.
Moreover, the RFP’s focus on the ERCOT region and STEC’s service territory could have a ripple effect on the local economy, creating jobs and stimulating economic growth. The deadline for submitting a “Notice of Intent to Respond” is August 6, 2025, with initial bids due September 10, 2025. As the energy sector watches and waits, one thing is clear: STEC’s RFP is a bold step towards securing a reliable energy future for South Texas.
For more information, visit http://www.STECFIRMRFP2025.com. Questions regarding the RFP should be directed to [email protected].