SFPUC approves $83M contract amendment for Blythe Solar battery storage project

A significant resolution was passed during the San Francisco County government meeting, approving amendments to the Clean Power SF's power purchase agreement with Blythe Solar I Veil. This amendment will add battery storage capabilities to the existing solar energy facility and increase the contract amount by approximately $83 million, bringing the total to a not-to-exceed cost of $220 million.

Mike Himes, director of the Clean Power SF program, highlighted the benefits of this addition, stating that the battery storage will optimize solar energy delivery. It will allow Clean Power SF to store energy produced during peak sunlight hours and release it during high-demand periods, reducing reliance on fossil fuels. This enhancement is expected to quadruple the resource adequacy capacity value of the project, providing about 8% of Clean Power SF's typical monthly requirements under state regulations.

However, concerns were raised regarding the community benefits associated with the contract. Supervisor Safaeed expressed dissatisfaction with the $375,000 allocated for community benefits in a contract valued at $288 million, questioning the sufficiency of this amount and the short duration of the benefits, which are set to expire in 2025. Himes explained that community benefits were part of a voluntary bidding process and that the SFPUC is considering revisions to its social impact partnership program.

The meeting also touched on labor agreements, with assurances that prevailing wages would be paid, although there is currently no project labor agreement in place for the battery storage component. The committee discussed the importance of having a representative from the developer present to address these labor practices and community commitments.

In conclusion, while the amendment to the power purchase agreement is poised to enhance Clean Power SF's energy capabilities and compliance with state regulations, the discussions highlighted ongoing concerns about community benefits and labor practices that may need further attention. The committee is considering a one-week extension to allow the developer to address these issues directly.