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Proposed 5 MW Sunset Reservoir solar PPA draws scrutiny over costs, buyout timing and jobs
Summary
SFPUC staff presented a proposed 25-year 5 MW solar power purchase agreement at Sunset Reservoir with Recurrent Energy at about $0.235/kWh; commissioners and community groups pressed for more financial analysis, options for earlier city buyout, stronger local-hire and workforce guarantees, and exploration of public financing alternatives under Prop H.
The San Francisco Public Utilities Commission outlined a proposed 25-year power purchase agreement (PPA) with Recurrent Energy to build a 5-megawatt solar array at Sunset Reservoir, a project staff says could help demonstrate local renewable capacity for a future Clean Power SF CCA program.
Assistant General Manager for Power Barbara Hale told commissioners the PPA would deliver the solar project's renewable attributes and electricity to the city at an annual cost of about $1,870,000 and a kilowatt-hour price of roughly $0.235. Hale said the contract contains two buyout options for the city at years 7 and 15 and that the PPA structure allows Recurrent to capture federal tax benefits, which reduce the project cost included in the quoted price.
Why it matters: Commissioners and supervisors stressed that a PPA for a…
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