REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Complete Negotiations and Execute a Renewable Energy Purchase and Sale Agreement with Energia Sierra Juarez U.S., LLC to Purchase Renewable Energy from the Cimarr?n Wind Project (Cimarr?n Wind Project)
Report
COUNCIL PILLAR
Deliver and Enhance High-Quality Efficient Services and Infrastructure
Promote Sustainability and Environmental Protection
BACKGROUND
The City of Santa Clara's Electric Department, Silicon Valley Power (SVP), purchases energy to supply the residents and businesses within the City of Santa Clara. With the passage of Senate Bill 100 (SB 100), SVP must meet the State of California Renewable Portfolio Standards (RPS) where SVP must procure a specified percentage of its retail sales from renewable energy resources by a particular year.
SB 100 requires retail sellers and local publicly owned electric utilities to procure a minimum 44% of retail sales by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030 of electricity products from eligible renewable energy resources.
In conformance with the City's Municipal Code and Council Policy, the purchase or sale of electrical power and fuels for the generation is not subject to the City's centralized purchasing process but is procured by SVP. SVP procures electrical power either by a) entering into Power Purchase Agreements (PPA) with project developers through their direct offerings and/or b) through a request for proposal (RFP) process. Each potential PPA project may have unique characteristics that impact the value of the resource to SVP customers. Staff evaluates potential projects on locational value, shape of the generation output, environmental attributes, capacity attributes, viability, and operational flexibility.
In April 2021, Sempra Infrastructure, a subsidiary of Sempra, presented an overview of renewable energy projects currently in development to SVP staff for their consideration. After re...
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