Pacific Gas and Electric Company or PG&E is a publicly traded utility company that provides natural gas and electric services to millions of customers in California. It has been a leading company in the energy industry for over a century and continues to invest in renewable energy sources to provide clean energy to its customers. One of the ways PG&E sources renewable energy is through power purchase agreements (PPAs).

A power purchase agreement (PPA) is a contract between a buyer (usually a utility company) and a seller (usually a renewable energy project developer) for the purchase of electricity generated by a specific renewable energy project. In the case of PG&E, it enters into PPAs with renewable energy developers to source clean energy and meet California’s renewable energy goals.

One of the most notable PPAs for PG&E is the one it entered into with the SolarReserve in 2009. SolarReserve is a renewable energy company that specializes in large-scale solar power projects. The PPA between PG&E and SolarReserve involved the construction of a 150-megawatt solar power plant in Riverside County, California. The plant, called the Rice Solar Energy Project, generates enough electricity to power 68,000 homes and offset over 450,000 metric tons of greenhouse gas emissions annually.

The PG&E power purchase agreement with SolarReserve was a landmark agreement in the renewable energy industry. It was one of the first utility-scale solar projects in the U.S. to use thermal energy storage, allowing for baseload power production from the sun. The project was also innovative in its use of molten salt as the energy storage medium, allowing for longer storage times and more efficient electricity generation.

In addition to the Rice Solar Energy Project, PG&E has entered into many other PPAs with renewable energy developers to meet California’s renewable energy goals. These include contracts with wind, solar, and geothermal energy projects across the state. PG&E continues to invest in renewable energy and is committed to sourcing clean energy for its customers.

In conclusion, power purchase agreements are a critical tool used by utility companies like PG&E to source renewable energy and meet renewable energy goals. The PG&E SolarReserve power purchase agreement was a landmark agreement and an innovative project that paved the way for more renewable energy projects in California and across the U.S. With the continued growth of the renewable energy industry, power purchase agreements will continue to play an essential role in transitioning to a clean energy future.