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Silicon Valley Clean Energy authorizes two 10-year SunZia wind PPAs totaling 25 MW
Summary
The board voted unanimously to authorize the CEO to execute two 10-year power purchase agreements with SunZia Wind (South and North) for 25 megawatts, expected online June 1, 2026; the contracts aim to add PCC1 renewable energy, resource adequacy, and portfolio diversity.
Silicon Valley Clean Energy’s (SVCE) board on May (meeting) authorized the chief executive officer to execute two 10-year power purchase agreements with SunZia Wind South and SunZia Wind North totaling 25 megawatts and not to exceed $84,000,000. The agreements are expected to be online on June 1, 2026.
The board’s action covers 17.25 MW at SunZia Wind South and 7.75 MW at SunZia Wind North, both sited at the larger SunZia Wind development in New Mexico. Staff said the combined output would be roughly 80 gigawatt-hours per year of PCC1 (portfolio content category 1) renewable energy and would contribute to SVCE’s midterm reliability and resource adequacy obligations.
SVCE staff framed the contracts as a portfolio-diversification measure: wind typically produces more at night and in winter, complementing solar that produces most midday. The presenter said the two agreements would add roughly 2 percent of SVCE’s load in eligible RPS energy and “probably just under 9 megawatts” of the entity’s midterm reliability counting rules.
Directors asked about experience with the SunZia developer and the relative cost of wind compared with solar. A director noted existing, positive experience with the developer and that the developer’s earlier 100 MW contract for SVCE is under construction. Staff said wind typically carries higher per-megawatt costs than solar but can be more valuable because it generates at higher-price hours, improving portfolio value.
The motion to approve was made by Director Lee and seconded by Vice Chair Klein. The roll call vote recorded the following yes votes: Chair Tyson; Vice Chair Klein; Director Scazzola; Director Fruin; Director Meadows; Director Risto; Director Showalter; Director Walia; Director Lee; Director Mechachuk. The motion carried unanimously.
Next steps are contract finalization and standard project monitoring until the expected online date in mid‑2026. Staff said the contracts will count toward SVCE’s long‑term RPS and resource adequacy planning as it works toward state targets discussed in the meeting.
