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Starkville’s Green Energy Boost from TVA

Solar panels at the Starkville solar farm

News Summary

Starkville is set to receive a $3 million compensation package from the Tennessee Valley Authority, paving the way for a greener future. This agreement allows Starkville to purchase power directly from the Golden Triangle I solar farm, creating a revenue stream estimated at $160,000 per year. With plans to potentially divest remaining RECs, the city is positioned as a leader in Mississippi’s renewable energy efforts.

Starkville Sets Its Sights on Green Energy with a Sweet Deal from TVA

Big news is brewing in Starkville as the Tennessee Valley Authority (TVA) opens its wallet to help the city grab a lucrative compensation package. The offer totals approximately $3 million over a span of twenty years, giving Starkville a shiny path forward as the world increasingly embraces clean energy.

A Little Backstory

Let’s rewind a bit and look at how Starkville got here. In 2020, Starkville made a bold move, becoming the first municipality in Mississippi to jump aboard TVA’s Green Invest program. This program involves purchasing renewable energy certificates (RECs) from solar farms. For Starkville, that meant committing to buy 30 megawatts of these RECs from the Golden Triangle I solar farm. This solar farm switched on its lights—figuratively speaking—on January 20.

However, as the saying goes, not everything goes according to the plan. By 2022, as construction costs soared, Starkville had to scale back its commitment from those 30 megawatts down to just 6.3 megawatts. This left the city with fewer RECs to play around with, causing some alarm among city officials and residents who believed in the importance of renewable energy.

TVA to the Rescue

In a generous turn of events, TVA isn’t just handing over money for the RECs that Starkville couldn’t utilize. Instead, TVA has crafted a deal that will let Starkville function as a partial middleman with the Golden Triangle I solar farm. This means that the city will be empowered to purchase 1.5 megawatts of power directly from the solar farm at TVA’s rates. In return, TVA will buy this power back at a higher price, giving Starkville an expected boost of about $160,000 per year.

What’s the Catch?

Here’s the good news: there really doesn’t appear to be any catch in this sweet setup. Derek McGill, a TVA rep, mentioned that there are zero downsides or risks involved for Starkville with this arrangement. The actual flow of electricity will remain unchanged, and city leaders seem excited about the new revenue stream.

A Brighter Future

In a recent city council meeting, members eagerly accepted the TVA offer, although they are awaiting a green light from the City Attorney and TVA leaders. Mayor Lynn Spruill expressed genuine appreciation toward TVA for acknowledging the changes in REC valuations and stepping up to support early adopters like Starkville.

Edward Kemp, the general manager of Starkville Utilities, confirmed that the annual revenue estimate aligns perfectly with their projections—talk about a win-win!

What Lies Ahead?

The deal doesn’t stop here. TVA has even hinting at an additional offer that may allow Starkville to divest the remaining 4.8 megawatts of RECs outside this current arrangement. However, that would still need approval from TVA’s higher-ups and the challenge of finding a buyer for those excess RECs.

In Conclusion

As Starkville moves ahead with this significant deal, it’s clear that the city is paving its way toward a greener future. With the help of TVA and its commitment to renewable energy, Starkville isn’t just catching up; it’s leading the way for others in Mississippi to follow. Who knew that a little cooperation could lead to big green rewards?