REPORT TO COUNCIL
SUBJECT
Title
Action to Delegate Authority to the City Manager to Negotiate and Execute Agreements with Westlands Grape, LLC to Purchase Renewable Energy and Resource Adequacy Capacity from the Westlands Solar Park
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. Pursuant to 2.105.090(b) of the City Code, "any contract for the purchase or sale of water, electrical power, fuels for the generation of electrical power, wastewater and recycled water" are exempt from following the purchasing procedures under the City's Centralized Purchasing Program.
With the passage of Senate Bill 100 (SB 100), SVP must meet the State of California Renewable Portfolio Standards (RPS) and, therefore, 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 addition to supporting the State and City's environmental goals, SVP is also responsible for supporting the reliability of the grid through the purchase of resource adequacy capacity. The resource adequacy program is administered by the California Independent System Operator (CAISO) for publicly owned utilities in its footprint and requires SVP to contract for an amount of capacity equal to 115% of its forecasted peak load.
In early 2022, SVP was presented with an offer to purchase renewable energy and resource adequacy capacity from solar plus storage projects in Westlands Solar Park that are in various stages of development...
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