Submitted By: Lisa M. Crouthamel
presenter
Presentation By: Chad Lynch
endDepartment: Electric Utility
STAFF RECOMMENDATION (Motion Ready):
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Approve the All-Requirements Project - Solar III Energy Participation Agreement for up to three megawatts of solar energy generation with the Florida Municipal Power Agency
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OCALA’S RELEVANT STRATEGIC GOALS:
Quality of Place
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On December 19, 2017, Council approved a solar generation commitment for 10 megawatts (MW) through an FMPA All-Requirements Projects (ARP) Solar I Participants Agreement. 7MW of that commitment from the Harmony facility has been active since Fiscal Year 2021. 3MW of that original commitment from the Poinsett facility was not constructed as planned, and that contract was terminated in December 2022.
On July 16, 2019, Council committed to receiving an additional 20MW of generation from the ARP Solar II Participants Agreement, with new solar facilities Rice Creek and Whistling Duck coming online in 2023 and 2024. To compensate for OEU’s loss of 3MW from the Phase I - Poinsett project, OEU was presented the opportunity to redirect the 3MW commitment to the upcoming FMPA ARP-Solar III Participants project. The Phase III project will include a collective 300MW of solar generation from multiple sites geographically dispersed across Florida and is scheduled for implementation in 2025 and 2026. OEU will be able to redirect the 3MW share at the same not-to-exceed target megawatt-hour (MWh) rate as the original Phase 1 Poinsett project.
The Power Purchase Agreement (PPA) for FMPA ARP Solar Participants is for a 20-year term, with an option for two (2) five-year extensions and a flat rate throughout the contract term for solar generation. The PPA is between the FMPA ARP and the solar project owner, Origis Energy. The ARP Solar III Energy Participation Agreement is between OEU and FMPA ARP. FMPA administers the PPA on behalf of all ARP participants.
The Solar Phase III participation, including the 3MW redirection of the original Poinsett project and OEU’s proportional share of the overall ARP participation, will bring OEU’s total commitment to Community Solar to 43.7MW by 2026. This represents just under fifteen percent of OEU’s summer peak load needs. On non-peak seasonal days, this percentage will be higher.
FINDINGS AND CONCLUSIONS:
The 3MW redirection from the Poinsett Solar project to the Origis Energy project will fully restore the original 30MW planned, while maintaining the original PPA price point target.
FISCAL IMPACT:
The Origis Energy project has a not-to-exceed generation price cap of less than $45/MWh. The actual fixed 20-year term rate is anticipated to be lower.
PROCUREMENT REVIEW:
This Agreement has been reviewed in compliance with the City’s Procurement Policy.
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny