Black Hills Energy purchases 200 MW of solar in 15-year agreement for Colorado
Following a competitive solicitation process, Black Hills Energy has signed a 15-year power purchase agreement for 200 MW of utility-scale solar energy that will be owned and operated by 174 Power Global in Colorado’s Pueblo County.
“We are very pleased by the broad community support that is driving our Renewable Advantage plan forward,” Vance Crocker, Black Hills Energy’s vice president for Colorado utilities, said. “With a project of this magnitude – the first and largest utility-scale solar project for Black Hills Energy – we will assure significant cost savings for our customers while achieving long-lasting environmental benefits and economic vitality for our local and regional economies for years to come.”
The 200 MW purchase will cover all of the energy generated from the new solar facility. This will go toward making Black Hills Energy’s Renewable Advantage plan to lower customer energy costs a reality. This should help Black Hills to reach a 51 percent renewable energy portfolio by 2023 and provide a 70 percent reduction in carbon emissions by 2024.
Estimates also project this effort will save the company’s customers around $66 million over the course of the 15 years and provide $178 million in direct and indirect economic benefits in state, federal, and local taxes.
Construction is expected to begin in 2022 and to be brought online in 2023. In addition to owning the facility, 174 Power Global will lead permitting efforts with local agencies.
