First phase of 400-MW Texas solar project to go ahead

July 24 (Reuters) - CPS Energy, a municipal utility in San Antonio, Texas, has signed a deal with a unit of South Korea's OCI to develop what they say will eventually be the largest utility solar project in the United States.

The first 50-megawatt phase of what is expected to be a 400-MW project will be complete by mid-2013, OCI Solar Power said in a a statement to mark the signing of the agreement this week. The remaining capacity would be built by 2016, it added.

The 25-year power purchase agreement is expected to provide enough electricity for nearly 70,000 households, according to CPS Energy.

The solar industry has been generally looking to sunny Texas as a source of new demand, and CPS said the new project would catapult it into the top five solar-power-producing states.

OCI Solar, which will locate its U.S. headquarters in San Antonio, has more than 40 projects across the U.S. and Canada.