Sacramento Municipal Utility District (SMUD) Cancels Coyote Creek Agrivoltaic Ranch Solar PPA Due To Supply, Cost, And Legal Challenges

In 2021, the Sacramento Municipal Utility District (SMUD) signed a power purchase agreement (PPA) with D.E. Shaw Renewable Investments (DESRI) to purchase solar power from the Coyote Creek Agrivoltaic Ranch project. However, due to a range of project uncertainties, SMUD announced today that it will not be proceeding with power purchases from the Coyote Creek project.

Among the factors contributing to this decision are supply chain constraints, rising material and equipment costs, tariffs, schedule delays, environmental concerns, and ongoing pending litigation. These challenges have made the project’s completion and reliable power delivery uncertain, prompting SMUD to reconsider its participation in the PPA.

Paul Lau, SMUD’s CEO and General Manager, commented on the decision, emphasizing the organization’s continued commitment to clean energy. He stated that over the years, SMUD and DESRI have successfully delivered multiple significant clean energy projects that benefit the local community. Lau expressed gratitude to Sacramento County for their involvement in the project and to the SMUD Board of Directors for their leadership.

He further reaffirmed SMUD’s long-term goals, noting that the utility remains committed to a flexible approach aimed at eliminating all carbon from its power supply by 2030 and looks forward to maintaining its partnership with DESRI on future renewable energy initiatives.