PA Project to Utilize Light & Solar Energy (PULSE)
By Gueorgui Tochev , Senior Budget Analyst | 3 years ago
Environment & Energy Analyst: Gueorgui Tochev, Senior Budget Analyst
What is it? – PA Pulse is a clean energy initiative driven by a commitment of Governor Wolf’s GreenGov Council to lower greenhouse gas emissions and to diversify the commonwealth’s grid. As part of this initiative, solar arrays will be built in seven locations within the following counties:
- Columbia
- Juniata
- Montour
- Northumberland
- Snyder
- York
In total, the project would span 1,800 – 2,000 acres, utilizing leased farmland within the selected counties. The 30-year leases would allow farmers to diversify their stream of income, as well as provide for local tax payments. In addition to the lease payments, farmers would receive solar facility generation profits. At the end of the lease, the farmer has the option to extend or end it.
Upon completion, the project will supply nearly 50 percent of the state government’s electricity through the seven arrays, with the ability to produce a total of 191 MW, which translates to 361,000 MWh/Year. This initiative would provide the electricity for 434 accounts across 16 state agencies. The arrays will be constructed and operated to meet industry leading standards for low-environmental-impact solar siting and design, including complying with the Nature Conservancy’s principles and practices for solar facility siting and design. At the end of their useful life, all solar panels will be recycled.
When operational, PA PULSE will reduce carbon dioxide emissions statewide by 157,800 metric tons each year -- the equivalent of the emissions from nearly 27,000 homes or the result of taking 34,000 cars off the roads.
When would this occur? - Currently the sites are going through local and state permitting processes as well as grid interconnection processes. Actual construction is not expected to begin until 2022, with commissioning and operation prior to the contract slated for January 1, 2023.
How is it accomplished? – The Department of General Services has procured solar energy through the Advanced Power Purchasing Agreement from Constellation Energy Inc., an electricity provider. In turn, Constellation Energy Inc, has secured a generation agreement to produce the electricity with LightSource BP, one of the largest solar developers in the world. LightSource BP will build, own, and operate the solar arrays, creating over 400 hundred new construction jobs for Pennsylvanians.
How much will it cost? – Given the utilization of an Advanced Power Purchasing Agreement, the commonwealth will not incur any upfront costs. All costs will be absorbed by LightSource BP and Constellation Energy Inc. Costs of the project may also be offset by a number of federal grants and tax credits, such as the Business Energy Investment Tax Credit (ITC), the Renewable Electricity Production Tax Credit (PTC), and Rural Energy for America Program (REAP) grants.
Moving forward, agencies would see little change in how they pay for electricity.
What about pricing? – Within the framework of the Power Purchasing Agreement, the commonwealth has secured a 15-year fixed price supply, and our fixed price solar average will be in the 5 cents per kwh range. At this rate, our electricity costs will be cheaper than our last 10-year average for traditional electricity supply. We are currently benefiting from historically low electricity rates and will lock in those low rates for the next 15 years.