5 Megawatt Project Will More than Triple San Francisco’s Total Solar Energy Output and Create New Green Jobs
SAN FRANCISCO, CA – Standing atop San Francisco’s largest water reservoir, Mayor Gavin Newsom today signed into law an ordinance that will lead to the construction of California’s largest solar photovoltaic (PV) installation. Upon the project’s completion in 2010, some 25,000 solar panels will line the roof of Sunset Reservoir, more than tripling San Francisco’s total municipal solar energy output from 2 MW today to 7 MW.
“Today San Francisco takes another major step towards achieving our commitments to reduce greenhouse gases and grow our green economy,” said Mayor Newsom, who sponsored the legislation. “In building California’s largest solar photovoltaic system at Sunset Reservoir, we’re creating dozens of green collar jobs and securing a stable source of clean power for years to come.”
Earlier this week, the San Francisco Board of Supervisors gave final approval to the ordinance, which establishes a 25-year contract between the San Francisco Public Utilities Commission (SFPUC) and San Francisco-based Recurrent Energy to supply clean, renewable solar power for City municipal services and facilities, including public schools, San Francisco International Airport, SF General Hospital, Muni and more. The project will also create more than 70 local green jobs, including at least 21 jobs for individuals in the City’s workforce development programs.
“I’m proud that my district will soon be home to California’s largest solar PV installation,” said Supervisor Carmen Chu, who co-sponsored the legislation with Mayor Newsom, and whose district includes the 8-square block Sunset Reservoir, the City’s largest. “I want to thank the environmental community, my colleagues on the Board, the SFPUC and Recurrent Energy for forging this smart public-private partnership that will rapidly expand our green power resources.”
“This historic project is an example of how protecting our environment and growing our economy go hand-in-hand,” said Supervisor Eric Mar. “I want to thank the ‘blue-green’ coalition of organized labor and environmental advocates who helped bring solar power to our largest City reservoir.”
The agreement between the SFPUC and Recurrent Energy leverages a 30% federal tax credit available only to the private sector through a “Power Purchase Agreement” (PPA) to dramatically lower project costs. Over the 25 year life of the contract, the City estimates that the power purchased from the project will cost $50.3 million, $36 million less than the lifetime cost of $86.3 million had the City built and financed the system themselves. Under the agreement, Recurrent Energy also assumes all the risk of financing, building and operating the project. The SFPUC is only responsible for purchasing the solar power produced at a competitive rate. The measure was also co-sponsored by Supervisors Eric Mar, Bevan Dufty and Michela Alioto-Pier.
“Approval of this project signifies a major step toward achieving our ambitious greenhouse gas reduction goals,” said SFPUC General Manager Ed Harrington. “By tripling the City’s municipal solar output, the Sunset Reservoir Solar Project has an immediate and direct impact on our carbon footprint.”
“This is the kind of project that will help lead our economic recovery with good green jobs, local contractors, apprenticeship opportunities and strong partnerships between organized labor and the community,” said Michael Theriault, Secretary-Treasurer of the San Francisco Building & Construction Trades, AFL-CIO.
“Recurrent Energy is proud to partner with the City to deliver not only clean electricity and local green jobs, but also a solar energy system that will serve as a symbol of San Francisco’s deep commitment to environmental sustainability,” said Recurrent Energy’s CEO, Arno Harris.
“The crisis of global warming demands immediate action,” said John Rizzo of the Sierra Club San Francisco Bay Chapter. “The Sunset solar project will reduce carbon emissions by over 100,000 metric tons of carbon over twenty-five years and help San Francisco lead California into a new green energy future.”
