JEA board approves $106.6 million, 150-megawatt solar deal with TEA

The agreement will supply the utility with renewable energy produced by FPL as JEA considers more in-house solar production.

  • Government
  • Share

JEA will have access to 150 megawatts of solar power produced by Florida Power & Light Co. through a five-year agreement with public power service organization The Energy Authority.

The board of directors for Jacksonville’s city-owned utility voted unanimously for the $106.6 million solar agreement as part of its Jan. 24 meeting consent agenda. 

TEA, an organization that provides services for public power companies, negotiated the deal between the two utilities that is meant to partially replace 250 megawatts of solar power JEA was expecting from contracts with EDF Renewables North America Inc. that were canceled in July. 

JEA is a founding member of TEA and one of its seven owners.

JEA officials are trying to respond to customers asking for more renewable energy resources to its portfolio and reduce the utility’s carbon emissions. 

As of the beginning of 2022, JEA says its energy mix comprises:

• Natural gas: 57%

• Purchase power: 31%

• Coal and petroleum coke: 10%

• Renewables (biomass, landfill gas and solar): 2%

After the EDF cancellation, JEA CEO Jay Stowe said in August that 2% renewable energy was too low.

Garry Baker, JEA senior director of electrical operations, said in December that the price for the solar power from FPL would be $45 per megawatt hour in a five-year agreement. That rises to $55.65 per megawatt hour after transmission and ancillary costs.

JEA would receive an average of 383,000 megawatts of power from the deal per year, according to board documents. 

The deal would automatically renew unless objected to by either party. 

JEA would also have to increase its line of credit with FPL by $8 million, according to Baker. 

The utility could start receiving the FPL solar energy in April 2023. 

Negotiations include a 20% discount on FPL’s $2,733.54 megawatt-month transmission and ancillary cost. Baker said FPL has petitioned the Florida Energy Regulatory Commission to approve the discount.

JEA would also have to increase its line of credit with FPL by $8 million, according to Baker. 

The deal takes solar from 1% to 4% of JEA’s total energy portfolio.

JEA is preparing to give in-house solar expansion another try. Board member Marty Lanahan said in December that the TEA deal could be a bridge to producing its own solar power.

Media Manager Karen McAllister said Dec. 16 that the utility expects to issue a request for proposals in January to find vendors to design and build or enter a purchase power agreement with JEA for nearly 300 megawatts of solar. 

JEA is looking for four solar sites at 74.9 megawatts each, she said.



Special Offer: $5 for 2 Months!

Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.