HENDERSON, Ky. (WFIE) - The Henderson Municipal Power & Light (HMP&L) announced Friday the electric utility will purchase 100% of the output of a new solar farm under development by Community Energy through a 20-year power purchase agreement.
The new solar farm is expected to produce 117 million kilowatt-hours of solar energy per year starting in 2023, HMP&L officials say.
According to the press release, the solar farm will fill 20% of HMP&L’s demand.
“At HMP&L, we continually work to secure the best and lowest cost power supply resources for our customers,” the executive team at HMP&L said. “Henderson selected Community Energy through a competitive process and has found a good partner to move us into the solar energy business. We look forward to the development of this project by Community Energy, which will provide power to our customers that is low cost, reliable, and renewable over the next two decades.”
Officials say HMP&L has around 12,000 meters with an annual peak demand of 106 megawatts and annual energy requirements of about 600,000-megawatt-hours.
HMP&L leaders say this project is not only environmentally friendly, but also cost effective.
“What we’re doing is going to the lowest cost initiative,” HMP&L General Manager Chris Heimgartner said. “Turns out that solar is part of a mix here in the Midwest. It is the low cost portfolio. So it wasn’t a push to go green or anything. It’s the economics that are driving this.”
HMP&L says construction for the project could begin in 2022, and they could begin to take energy off the grid in late 2023.