CPS Energy, San Antonio's municipally owned electric and natural gas utility, in June signed a 20-year agreement with Tessera to buy power generated from the solar project.
The plant is expected to go under construction next summer, and the first units are expected to go online by the end of next year.
Tessera is negotiating for the specific west Texas site.
It will use the SunCatcher power system, made by its sister company, Stirling Energy Systems, of Scottsdale, Ariz. It uses mirrors on parabolic dishes to concentrate the sun's energy on a high-efficiency engine.