From The Mountain Town News (Allen Best):
Path to 70% to 80% renewables becomes clear
Kit Carson Electric Cooperative recently signed a contract that will give it enough solar capacity backed by storage to meet all of its peak daytime needs by 2021, about nine months earlier than had previous been expected.
An agreement reached recently with solar developer Torch Clean Energy will give Kit Carson 21 megawatts of additional solar capacity, to a new total of 38 megawatts of solar. The deal will also produce 15 megawatts of storage capacity, the first for the cooperative.
Mindful of the wildfires in California and Colorado during recent years, location of the battery storage was chosen with the goal of improving resiliency of vital community functions in Kit Carson’s three-county service area. The majority of the battery storage will be at Taos, to meet needs of a hospital and emergency services in cases of disruption. The rest will be located near the Angle Fire ski area. If wildfire should cause power losses, the batteries will provide for four hours of electricity for pumping of water into the community water tank.
“If for some reason, we were separated from the grid, we would at least have some battery storage for a couple of hours,” said Luis Reyes, chief executive of the 23,000-member cooperative.
Battery storage will also help Kit Carson shave costs of transmission paid to the Public Service Co. of New Mexico and to Tri-State Generation and Transmission, said Reyes. Prices of neither solar nor storage have been divulged, but they will be.
Kit Carson first invested in solar in 2002. Then, in 2010, members of the coop voted to adopt a goal of 100% renewables.
In 2016, the coop began negotiating with wholesale provider Tri-State Generation and Transmission for an exit fee. It also hooked up with Guzman Energy, then a new full-requirements power supplier. With Guzman paying the $37 million exit fee, Kit Carson and Guzman in 2017 accelerated investments in solar energy.
According to the media kit on Kit Carson’s website, a collaboration of Kit Carson and Guzman, the co-op will save $50 million to $70 million over the life of the 10-year contract. Unlike the contract with Tri-State, which had a 5% cap on locally generated electricity, the contract with Guzman has no limit. Price increases for Guzman’s wholesale power are capped.
Chris Miller, chief operating office for Guzman, called it an “exciting time for Kit Carson, and for all local energy co-ops around the country that are setting ambitious goals and realizing the benefits of renewable energy capacity for the communities they serve.”
Guzman is also scheduled to begin delivering electricity to Colorado’s Delta-Montrose Electric Association beginning next Monday, and it has been courting other potential customers, including cooperatives and municipalities.
Beyond the solar capacity that will allow Kit Carson to hit 48% renewables, Kit Carson hopes to add wind generation from eastern New Mexico in coming years, putting it at 75% to 80% renewable.
Achieving the 100% renewables goal, however, will take something more. Reyes says Kit Carson hopes for further improvements in energy technology, possibly including hydrogen.
“In the next few years, some new technology will come into fruition that will provide energy for night and for cloudy days and will be a renewable product,” said Reyes in an interview with Mountain Town News.