San Diego Community Power on May 2025 approved an amendment to the power purchase agreement for the Pelican Shaw solar‑plus‑storage project, a large renewable project that staff said is now in construction and could deliver material renewable energy, resource adequacy and carbon‑free attributes to the agency as early as late summer 2026.

Kenny Key, director of power contracts for San Diego Community Power, told the board the project was originally contracted in stages and later expanded so the agency would be the sole offtaker for the full output. "This is a massive project," Key said during his presentation, describing the site in Kern County as a multi‑hundred‑megawatt solar array paired with a large battery system. Key said the full project represents roughly 1,200,000 megawatt‑hours per year — "that is roughly 8 to 10% of our load," he said — and that earlier negotiations reduced price by taking the whole project rather than a partial offtake.

Why it matters: the project increases the agency’s long‑term renewable supply and helps meet mid‑term resource adequacy and reliability goals. Staff said an earlier commercial operation date (COD) was accelerated by the developer; the amendment adjusts pricing and commercial terms to reflect an earlier COD window while keeping overall price below short‑term market alternatives, according to staff analysis.

What the amendment does

- Timing and pricing: The amendment allows for an earlier commercial operation date (late summer 2026 rather than April 2027 in the original agreement). Key said staff negotiated pricing adjustments tied to when the developer brings the project online; earlier in the year has more value because summer resource adequacy value is higher.

- Contract updates: The amendment updates resource adequacy language (slice‑of‑day provisions), clarifies commercial terms, and includes assignment language that would enable a prepayment or prepaid‑transaction structure in the future.

- Construction and community benefits: Staff showed photos of ongoing construction and said the developer has committed community benefits funding and a project labor agreement. Key said the project will create more than 800 jobs during construction, is covered by a PLA and that the developer committed about $500,000 to local community benefits.

Board action and comment

The board voted to approve the amended and restated renewable PPA for the Pelican Shaw project. Directors who registered votes on the record voted in favor; the item passed unanimously as called. Several directors praised staff negotiations and the project’s local benefit commitments.

Background and context

Key reminded the board that the PPA first came through a solicitation and that staff previously negotiated an expansion to have San Diego Community Power serve as the sole offtaker for the full project, which gave staff leverage to negotiate favorable pricing. Staff also said the project qualifies under safe‑harbor provisions tied to tax credits because construction has begun. The agency cited the project’s contribution toward long‑term renewable targets and mid‑term reliability planning.

Next steps

Staff will finalize contract documents and proceed with the amended agreement as approved by the board.