RCEA approves Hatcher Road solar-plus-storage PPA despite modest negative NPV, staff says project advances local renewables

The Redwood Coast Energy Authority on Oct. 23 approved Resolution 2025‑6 to enter a power‑purchase agreement for a Hatcher Road project consisting of four 1‑megawatt solar arrays and a co‑located 4‑megawatt battery with four‑hour duration.

Jocelyn Glenn, presenting staff's recommendation, said the solar portion has site control, a conditional use permit with a mitigated negative declaration, and an interconnection agreement signed with PG&E for the generation. The storage facility will require a separate interconnection request and a CUP modification. Glenn said staff considers the project low development risk because of the permitting and site-control posture but also reported an estimated negative net-present-value of about $4–6 million over the first half of the contract term compared with the agency’s forecasts of product value.

"The payouts that would be budgeted for paying the developers for the power would be significantly more than that $4–6 million," Glenn said, explaining that the figure represents a present‑value difference between contract payments and the forecasted market value of energy, RECs and ancillary services for the first 10 years.

Renewable Properties' representative Louis Langlois told the board the arrays will use single‑axis trackers with roughly 3 to 7 feet of clearance under panels, which should allow mowing and potentially grazing in parts of the site; the developer also plans pollinator habitat and continued agricultural use where feasible.

Directors probed whether the project would provide Resource Adequacy (RA). Glenn said the project was offered initially without RA but the contract includes an option to add RA later in exchange for a higher price. Staff and directors discussed portfolio effects and hedging benefits of placing some load under long‑term fixed contracts even when a premium is paid.

A board member moved to approve the staff recommendation and the motion carried by hand‑raise vote; the transcript records that the motion approved Resolution 2025‑6 but does not include a roll-call tally of individual yes/no votes.

Next steps: staff will execute the PPA and continue required permit modifications and interconnection work; staff said the solar arrays are expected online in Q2 2027 with the battery a year later.