San Jose Clean Energy signed its first long-term power-purchase agreement Aug. 7 with Houston-based EDP Renewables North America for 100 MW of solar capacity and 10 MW of battery storage.
The facilities will be built in Fresno County for the City of San Jose community choice aggregator under the 20-year contract.
The 10 MW of battery storage will be constructed at the Sonrisa Solar Park. Both projects should be operational in 2022.
SCJE forecasts its customer renewable-energy demand will reach 2,000 GWh/year by 2022. It currently serves more than 328,000 residential and business customers and has a 98.6-percent participation rate.
"Today's investment will avoid more than 4.1 million tons of greenhouse gases from our air, bringing us another step closer towards meeting the aggressive emission reduction targets defined in our Climate Smart San Jose plan and securing a sustainable future for our community," San Jose Mayor Sam Liccardo said.
"A long-term PPA produces power at a lower price than short-term contracts, so SJCE will see our operational costs decrease," San Jose Clean Energy Director Lori Mitchell said. "Because SJCE is a government agency, these savings will be reinvested into our community through lower rates and community programs—instead of going to shareholders. This agreement is a win for the environment, a win for our ratepayers, and a win for San Jose."
EDP Renewables says Sonrisa Solar Park will be the company's first North American project to include both solar energy and battery storage.
"Energy storage plays an important role in creating a more flexible and reliable grid system, and as storage technology progresses, EDPR will continue to pursue the inclusion of storage at additional projects within our portfolio," Miguel Prado, CEO of EDP Renewables North America, said.
East Bay Community Energy announced June 20 it would be purchasing 200 MW of solar and 40 MW of storage from the Sonrisa Solar Park.
To date, EDP Renewables North America has developed more than 6,700 MW of renewable energy projects and operates more than 6,100 MW, including the Rising Tree Wind Farm in Kern County and two phases of the Lone Valley Solar Park in San Bernardino County.
CCA officials say the contract will help San Jose meet its climate action plan, the goal of which is to provide the city with 100 percent carbon-free power by 2021 and 100 percent renewable power by 2050.