Industrial, Regulation, Solar, Sourcing Renewables, Wind - August 20, 2018
EVRAZ signs long-term solar PPA
EVRAZ Pueblo finalized a long-term electricity agreement with Xcel Energy on Aug. 16 that will pave the way for Xcel to build a 240 MW solar facility on EVRAZ's property and allow for an upgrade and expansion of its Colorado mill.
The deal guarantees EVRAZ Pueblo, a Colorado-based steelmaker, price certainty for the next 22 years. The contract is now under review by the Colorado Public Utilities Commission, "as part of the regulatory agency’s consideration of Xcel’s plan to decommission two of the three coal-fired units at its Pueblo Comanche power plant and replace the electricity with solar, wind and natural gas power sources," according to a report by The Pueblo Chieftain.
EVRAZ, Xcel's largest customer in Colorado, committed to approximately $500 million in upgrade and expansion projects, particularly in the Pueblo area, with key investments required by 2024. “Achieving long-term price certainty on energy is a key first ingredient for considering further investments,” Conrad Winkler, president and chief officer of EVRAZ North America, said in a statement.
The Pueblo Chieftain’s report noted that statewide, Xcel’s plan calls for $2.5 billion of investments in more solar power and battery storage (700 megawatts); more wind power (1,100 megawatts); and purchasing 385 megawatts of gas-fired power. Many of the improvements will be built in the Pueblo area.