The Los Alamos Utilities Department (DPU) today announced that it has entered into a Power Purchase Agreement (PPA) with Uniper Global Commodities that will provide Los Alamos County with 15 megawatts of farm power on a period of 15 years.
The agreement secures a supply of energy primarily from new wind and solar generation facilities currently under development in New Mexico.
It also ensures a firm, long-term power solution for Los Alamos at prices lower than the county’s current mixed cost of electricity. Deliveries under the new agreement are expected to start in January 2022.
Utilities Director Philo Shelton said replacing existing coal-fired electric power with power from renewable energy facilities could reduce the county’s carbon emissions by 70,000 metric tons each year. Shelton called the deal an important step forward that brings the DPU closer to its goal of becoming a carbon-neutral electricity supplier by 2040.
The 15-megawatt deal will partially fill a power generation gap created when Los Alamos County exits an agreement with the San Juan Power Plant (a coal-fired plant in the Farmington area) in 2022. Shelton a said the savings in the Uniper deal will help DPU stay competitive as it seeks to source additional megawatts to meet expected demand.
âThe deal is truly a victory for the county on a number of fronts,â Shelton said. “We’re saving costs, we’re working to reduce our carbon footprint, and we’re sourcing renewable energy from within the state.”
Under the agreement, renewable energy will come from two power generation facilities currently under construction in New Mexico. Solar power will be supplied from a project in northwestern San Juan County with wind power coming from a production center in central New Mexico.
According to Shelton, New Mexico’s natural wind and solar profiles complement each other well, making it a very robust and reliable power generation mix. During hours when wind and solar power generation is insufficient to meet demand, Uniper will organize an alternative supply from its portfolio of traditional energy resources.
Marc Merrill, CEO of Uniper North America, said that one of the main goals of his company’s activities is to work with energy cooperatives and municipalities like Los Alamos in finding energy resource solutions in a growing environment. rapid evolution.
âIncreasingly, we are seeing municipalities proactively exploring customized energy supply solutions that can help them advance critical energy goals related to profitability, reducing carbon emissions, and ensuring the safety of their businesses. supply, âMerrill said. âWe enjoy working with forward-thinking communities like Los Alamos and plan to build a strong partnership with the county through this agreement.â
Uniper is an international energy company with approximately 12,000 employees in more than 40 countries. The company plans to make its energy production CO2-neutral in Europe by 2035. With around 35 GW of installed production capacity, Uniper is one of the world’s largest generators. Its core businesses include power generation as well as global energy trading, including a diverse gas portfolio that makes Uniper one of Europe’s leading gas companies.
In 2020, Uniper achieved gas sales of over 220 bcm. Uniper is also a reliable partner for municipalities, utilities and industrial companies for the development and implementation of innovative CO2-reducing the solutions on the way to decarbonizing their activities. As a pioneer in the field of hydrogen, Uniper is active worldwide throughout the value chain and implements projects aimed at making hydrogen usable as a mainstay of energy supply.
The company is headquartered in DÃ¼sseldorf and is currently the third largest German public utility listed on the stock exchange. Along with its main shareholder Fortum, Uniper is also the third largest producer of CO2-free energy in Europe.
Uniper in North America
In North America, Uniper conducts sales, trading and marketing activities on a range of energy products in all major markets. The company offers sophisticated and reliable solutions to help customers meet their decarbonization and energy needs. Uniper’s North American operations are located in Houston, Chicago and Calgary.