Structuring Solar Power Projects As Power Purchase Agreements

Structuring Solar Projects As Power Purchase Agreements
Structuring Solar Projects As Power Purchase Agreements

Constellation, a subsidiary of Exelon Corporation and Mohave Electric Cooperative (Mohave Electric) have announced the completion of a 13.8-megawatt (DC) solar generation project in Fort Mohave, Arizona.

The ground-mounted solar power system is located across 84 acres and fitted with a state-of-the-art single-axis tracking system that enables the system to remain at an optimal angle to the sun throughout the day, maximizing energy output.

“This project offers us a cost effective way to incorporate more renewable power into our purchased power portfolio,” said Tyler Carlson, Mohave Electric’s Chief Executive Officer.

Our members want solar— they are for it as long as it’s cost effective for the Cooperative.

The project required no upfront capital from Mohave Electric. Constellation owns and operates the solar power system. Mohave Electric will purchase the electricity generated by the solar panels from Constellation through a 30-year power purchase agreement. The terms of the agreement provide periodic options for Mohave Electric to purchase the facilities after six years.

More Solar Power Projects.

“Constellation is pleased to continue to collaborate with Mohave Electric to deliver renewable solar power to their members, while pro-actively managing their purchased power costs long-term,” said Brendon Quinlivan, executive director of distributed energy origination for Constellation.

Structuring solar projects as power purchase agreements enables municipal utilities and their consumers to adopt solar energy solutions that may require no upfront capital, and provide long-term fixed power costs that are less than projected market rates.

This project is the second solar generation system completed by Constellation and Mohave Electric. It joins a 5-megawatt project that was completed in 2015 at a nearby site. Together, the systems are expected to generate approximately 38,000 megawatt hours of electricity annually, or enough to power nearly 4,000 homes according to US EPA data for the region.

Greenstone Renewables, an Arizona-based clean energy project developer serving commercial and government customers, led the pre-construction development efforts for the solar power project.

Constellation currently owns and operates more than 400 megawatts of distributed generation that have been completed or are under construction for commercial and government customers throughout the United States, including approximately 300 megawatts of solar installations. Within the solar portfolio, Constellation has developed and owns approximately 70MW’s of solar systems contracted with other utilities and affiliates throughout the U.S.

About Gordon Smith
Gordon's expertise in the area of industrial energy efficiency and alternative energy. He is an experienced electrical engineer with a Masters degree in Alternative Energy technology. He is the co-founder of several renewable energy media sites including Solar Thermal Magazine.

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1 Comment

  • Raj Kumar says:

    I highly appreciate this effort and wish to have your kind assistance in promoting green energy in Fiji which is in the South Pacific region. I am currently doing various renewable energy proposals to draw the attention of local power provider inPPAarrangement.Please advise your intetest.

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