Secretary of Agriculture Tom Vilsack traveled to Poudre Valley Rural Electric Association in Fort Collins, Colorado, on Monday to announce $81 million in special loan financing to help PVREA and Delta-Montrose Electrical Association in Montrose, Colorado, develop innovative clean energy projects that combine solar energy and battery storage.
"The projects we are announcing today will create good-paying jobs, reduce energy costs for consumers, reduce greenhouse gas emissions and strengthen the resilience of our nation's power grid," Vilsack said during a news conference at the headquarters of Poudre Valley REA.
Delta-Montrose Electric Partnership will receive a $72 million low-interest, partially forgivable loan from the U.S. Department of Agriculture. Boosting the Affordable Clean Energy (PACE) Program to help finance a massive 20-megawatt solar PV array with an additional 80 megawatt-hours of battery storage. It is the nation's second-largest PACE award so far, USDA officials said. Excess electricity generated from solar power can be stored in the battery and used as needed to alleviate peak demand.
The solar panel will account for about 10% of DMEA's total load and will produce enough energy to power about 7,000 homes when completed, most likely in 2030, the cooperative estimated.
The total cost of the project is $96 million. USDA forgives 40% of the cooperative's $72 million loan, with additional financing opportunities beginning in 2022 Inflation Reduction Law that created the PACE program: DMEA will seek up to another 50% of the project costs in federal tax incentives, cooperative leaders said.
“This is a monumental victory for DMEA and our members,” said CEO Jack Johnston. “This investment not only allows us to produce affordable energy, further stabilizing member rates, but also improves the reliability of the local grid. The energy we generate right here at home can be efficiently delivered to our members, avoiding reliance on distant power plants and extensive transmission lines.”
Poudre Valley REA will receive a $9 million loan from the PACE program to build two separate projects. The first will be a 1.5 MW utility-scale solar power distribution system that will be combined with battery storage, said Jeff Wadsworth, president and CEO of the cooperative.
The second project will be a 2 MW community solar farm that will also be combined with battery storage. It will be the cooperative's fourth and largest community solar farm, he said.
“In the state of Colorado, it is important to our members that we work on the energy transition in a responsible way that ensures reliability and affordability, as well as a more sustainable grid,” Wadsworth said. “These are legacy projects that will benefit our community for years to come.”
PACE will provide a total of up to $1 billion to fund clean energy and energy storage projects in rural America. The program offers low-interest loans with up to 60% loan forgiveness to rural energy providers, including electric cooperatives, for projects using wind, solar, hydroelectric, geothermal and biomass energy.
Earlier this year at NRECA's PowerXchange in San Antonio, Texas, Vilsack announced five PACE applications totaling $139 million that were advancing. USDA officials said they expect to announce more awards in the coming months.
Erin Kelly is a staff writer at NRECA.
