Austin Energy expects to source 51% of its power from renewable resources by 2020, after the Austin City Council approved its new solar contract.
The community-owned utility agreed to buy the output of Intersect Power Inc.'s 150-MW solar farm at an estimated annual cost of $10 million to $12 million for 15 years. The power purchase agreement will bring the city's solar capacity to nearly 800 MW, according to a Dec. 14 news release.
Austin Energy said it may also purchase an additional 30 MW under the power purchase agreement, provided that it is feasible and has the same favorable economics.
Austin Energy has a goal of achieving 65% renewable energy use by 2027 under the City Council-approved resource, generation and climate protection plan. The plan calls for increasing solar capacity to at least 950 MW by 2025.