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Board authorizes staff to pursue 10–12 MW solar project under PPA
Summary
The Board authorized staff to proceed with development of a 10–12 megawatt solar project using a power purchase agreement with a selected developer (referred to as ERI/Etri Foundry), with indicative PPA pricing of about 5–7 cents per kilowatt-hour and expected online date in spring 2027.
The Bowling Green Board of Utilities authorized staff to continue development of a utility-scale solar project and to finalize the agreements needed for site leases and a power purchase agreement (PPA).
Jim, assistant director, said the proposed project would be 10 to 12 megawatts and operate as part of the utility’s supply portfolio to help manage peak demand and reduce transmission and capacity costs. Staff recommended selecting ERI (referred to in meeting materials as Etri Foundry / ERI) as the developer; the developer would build, own and operate the facility and the city would be the sole purchaser under a PPA. Indicative pricing cited by staff was in the range of 5 to 7 cents per kilowatt-hour with a fixed price and no escalation clause; final PPA pricing will be determined as project design advances.
Jim and staff told the board the selected sites are adjacent to the distribution system to minimize interconnection costs, that the project is expected to use a local contractor and panels from a U.S. manufacturer where feasible, and that agreements would be finalized with legal review. Staff estimated construction could start in late 2026 with the project online in spring 2027.
Board members asked about performance guarantees and whether the developer would bear maintenance and replacement costs. Staff said the developer would assume construction and long-term maintenance risk; under the PPA the city would pay only for energy delivered. Staff expect the final PPA to include performance-related provisions but said the agreement had not been finalized.
A motion to approve Resolution 03202603 authorizing development of the solar generation project passed on roll call (New Love — yes; Wagner — yes; Suzig — yes). Staff will complete legal reviews and finalize lease and PPA documents.
