Canadian Solar subsidiary Recurrent Energy announced Tuesday that it has signed off on a 20-year power purchase agreement for 60MW of solar power with the Sacramento Municipal Utility District (SMUD).
As part of the deal, SMUD will receive electricity from the 60MW Tranquillity 8 Verde solar photovoltaic (PV) project — located in Fresno County, California. Construction on the plant is expected to begin in mid 2017.
The installation, which will generate enough electricity to power approximately 15,000 homes, will begin providing power to SMUD by early 2018.
Sherri Gervin, SMUD supervising principal energy trading commodity contracts specialist, “SMUD continues to add more renewable, non-carbon supplies to our power mix. SMUD was the first large California utility to have 20% of its power supply come from sources classified by California as renewable, and is on track to meet the state mandate requiring utilities to increase their renewable portfolio to 33% by 2020. In the last decade the renewable portion of our power mix has grown from 7% to 28%.
Tranquillity 8 Verde stands as Recurrent Energy's fifth solar project with SMUD.
Dr. Shawn Qu, chairman and chief executive officer of Canadian Solar, added: “We are proud to partner with SMUD to continue delivering reliable, cost-competitive solar power to their customers. SMUD is a leader in driving adoption of large-scale solar power and should be commended for its sustained commitment.”