HOLLAND ? The Holland Board of Public Works has voted to recommend a 20-year renewable energy wind contract with the Michigan Public Power Agency. The energy will come from Beebe Wind in Ithaca. The contract will be presented to Holland City Council for approval March 20.
The contract is the second wind energy power purchase agreement for the HBPW and will nearly double Holland?s share of wind-generated power from 15 Megawatts to nearly 32 Megawatts, increasing Holland?s energy portfolio to about 16 percent of the city?s total electric sources. The HBPW anticipates Holland will start receiving energy through this contract by August 2014.
?Diversifying our portfolio with sustainable and efficient power generation reflects the HBPW?s desire to provide consistent, reliable power to our customers in a responsible way,? stated Dave Koster, HBPW General Manager. ?We are committed to deepening our renewable energy offerings for our customers and our community.?
The power purchase agreement with the MPPA for 16.8 Megawatts of wind generation will start out at less than 4.5 cents per kilowatt hour and escalate at 2.5 percent per year over the course of 20 years.
In addition to Holland, four other Michigan cities are planning to participate in this power purchase agreement. Holland will be the largest power purchasing city, using 16.8 Megawatt of power from seven turbines. MPPA?s total contract with Beebe is for eleven turbines with an output of 26.4 Megawatt.
?Holland and the other cities are all members of the Michigan Public Power Agency. Entering into a contract as a group, we increase our purchasing power and receive better pricing, and we can pass those savings on to our customers,? said Koster.
The contract includes expansion of Beebe?s existing Ithaca site. The contract also satisfies the state?s requirements for renewable energy under PA 295.
