The Sacramento Municipal Utility District, or SMUD, announced earlier this week that it’s canceling the agreement signed in 2021 to purchase power from the controversial Coyote Creek solar project.
“SMUD made the decision to terminate the power purchase agreement for the Coyote Creek project due to multiple uncertainties and risks that developed since the contract was signed in 2021, including supply chain challenges, rising costs, environmental concerns, schedule delays and other evolving factors,” SMUD said in an emailed statement.
The 200 megawatt project involves developing over a thousand acres in southeastern Sacramento County and was meant to help SMUD reach its clean energy goals.
But it’s received a surge of pushback from environmental groups and locals, especially in recent months, who say it would decimate sensitive habitats and irreplaceable oak trees. Some groups also filed lawsuits against the Sacramento County board of supervisors after they approved the project in November.
“This really struck a nerve with the environmental community, and the community at large here in Sacramento,” said Heather Fargo, president of the nonprofit Environmental Council of Sacramento, or ECOS.
Carol Witham, the treasurer for the Sacramento Valley’s California Native Plant Society chapter, said she believes community pushback and the lawsuits prompted SMUD’s decision. Her group filed a lawsuit with ECOS in response to the county board’s decision.
“I’m a firm believer in solar,” Witham said. “I just happen to believe that you need to put it some place where it’s not going to eliminate important natural habitat.”
Fargo said SMUD’s decision makes the project’s future uncertain.
“The fact that there’s a delay and the fact that SMUD is pulling out will make it more expensive … so we’re hoping it gets to the point where it’s not viable,” Fargo said.
But that doesn’t mean the project is done. A spokesperson with the project developer, DESRI, told CapRadio that they are moving forward with the project. They said their plans would preserve the project site’s environment and support the county’s climate action plan.
“We commend the Sacramento County Board of Supervisors for their bold leadership in unanimously approving the Coyote Creek Agrivoltaic Ranch last November,” DESRI said in an emailed statement. “Coyote Creek has been in development for many years and during that time, our team has engaged meaningfully with the community to build lasting partnerships.”
The statement also said DESRI plans to “remain committed to delivering high-quality projects that support Sacramento County and California’s renewable energy goals and mandates.”
Luz Lim, a policy analyst for ECOS, said one possible avenue forward for the project could involve the developer finding someone else to purchase power from it. She said there’s more work ahead to stop the project completely.
“We’re still fighting it and we hope that SMUD can do what it can to make sure that the project itself does not go forward with somebody else,” Lim said.
Lim said ECOS plans to continue with its lawsuit. The nonprofit also launched a website to operate as a central place for updates on the project.
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