Huntsville and Madison team up on 40-megawatt solar plant
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The Huntsville City Council approved a lease agreement last week to allow construction of a 238-acre, 40-megawatt solar generation facility.
Why it matters: Huntsville Utilities expects the plant to keep costs down for local ratepayers and bolster the area's energy resilience.
Zoom in: Gemini Solar LLC is named on the lease, a company created for the purpose by Eurus Energy, which is owned by Toyota Tsusho, which operates the current 30-megawatt solar facility at Mazda-Toyota, said Shane Davis, director of urban and economic development.
- The company won a competitive bid process to secure the lease, he said, and will construct the facility near the intersection of Wall Triana Highway and Sixth Street, south of Huntsville International Airport.
What they're saying: "We've avoided over $6 million in power charges to TVA by being able to shave peak demand down" in the nearly three years that the Toyota solar facility has been operational, Huntsville Utilities spokesperson Joe Gehrdes told Axios.
- That's because the Tennessee Valley Authority sets the rate it charges for power based in part on peak demand. Shaving peak demand helps shave the price.
- Buying from the local solar operator is about 6 cents cheaper per kilowatt-hour, Gehrdes said, which scaled up to 40-megawatt-hours is $2,400 per hour of the facility running at full capacity.
How it works: After due diligence, a 14-month construction period begins, and Gehrdes said the plan is to have the plant under construction by July in order to take advantage of federal tax credits before they sunset.
- The 25-year lease, which auto-renews for two five-year periods unless Gemini opts out, is for $1,000 per acre per year, totaling $237,690 per year.
- The city will split that total 50/50 with Madison County, which passed the same lease at its meeting last week, Davis said.
The intrigue: The move is an example of various governments and entities working together seamlessly, said Councilman Bill Kling at Thursday's meeting. It also comes at a time when solar development has become a political football in Montgomery.
- Senate Bill 354 would have imposed a year-long moratorium on solar developments in the state, though it was watered down to apply only to coastal counties and ultimately couldn't get a unanimous vote needed to move it to the House, the Alabama Reflector reports.