EDF Renewables North America has signed 25-year power purchase agreement (PPA) with Southern California Public Power Authority (SCPPA) for the energy and renewable attributes related to the 70 MW AC Desert Harvest II solar PV project in Riverside County, Calif.
The agreement was signed under a renewable energy credit plus index structure. The Desert Harvest II Solar Project is expected to begin delivery of clean electricity to SCPPA’s participating members – Anaheim, Burbank and Vernon – starting in 2020. In conjunction, EDF Renewables signed a long-term financial hedge for power with Morgan Stanley Capital Group Inc.
Under the SCPPA PPA, EDF Renewables says it worked with California municipalities to create a structuring solution to address the specific challenges posed by California’s “duck curve.” EDF Renewables is able to provide SCPPA with a PPA structure that shelters the buyer from exposure to merchant prices through the use of a long-term hedge, coupled with an energy storage system.
The Desert Harvest II Solar Project is located on unincorporated land administered by the federal Bureau of Land Management (BLM). The BLM designated this area as a Solar Energy Zone and Development Focus Area, land set aside for utility-scale renewable energy development. Desert Harvest II is also specially designed to generate clean energy while protecting wildlife habitat and public lands. The project will use horizontal single-axis tracking solar PV technology.
“Desert Harvest II represents the company’s second collaboration with SCPPA, and we look forward to working with them to make the project a success, providing a boost to the Riverside County economy in parallel through the creation of new jobs,” comments Ryan Pfaff, executive vice president of grid-scale power at EDF Renewables.
SCPPA’s executive director, Mike Webster, adds, “EDF Renewable’s Desert Harvest II solar project will help to allow our participating member utilities to be on track to achieve their renewable production goals of 40 percent by the end of 2024.”