Staff Reports

Progress Energy Carolinas has signed an agreement with Southern Energy and NxGen Power to build, own and operate a 1.3-megawatt solar photovoltaic (PV) array and sell the output to Progress Energy Carolinas for distribution to its customers. The proposed PV array would be located on City of Raleigh property at the Neuse River Wastewater Treatment Plant (NRWWTP).

 The project will be the first utility-scale solar power project located on local government property in North Carolina. This is also the fifth and largest solar array project announced by Progress Energy Carolinas, bringing the total amount of solar-generated electricity scheduled to be purchased by the company to more than five megawatts.

 “We are committed to aggressively and responsibly pursuing renewable energy resources, such as solar power, as part of a balanced approach to meeting our region’s growing energy demand,” said Lloyd Yates, president and chief executive officer of Progress Energy Carolinas. “This project continues our long history of partnering with local communities, and we are pleased to help advance this innovative technology.”

 The Raleigh City Council voted unanimously July 7, 2009, to authorize city staff to begin negotiating a lease agreement with Southern Energy and NxGen Power for about 10 acres at the NRWWTP, located at the northwest corner of Brownfield and Battlebridge Roads. No city capital investment will be required for this project.

 The proposed solar PV array is expected to come online in early 2010 and will generate about 1.7 million kilowatt-hours (kWh) of electricity per year, reducing carbon dioxide emissions by more than 1,300 tons annually. This is equivalent to the carbon dioxide emissions from the use of about 140,000 gallons of gasoline.

 “We have seen solar go from an extreme idea to something homeowners, homebuilders, businesses and now even cities and government leaders are recognizing as a viable mainstream option,” said Bob Kingery, co-founder of Southern Energy. “As a local company that started in Raleigh in a living room in 2001, we are humbled to have the opportunity to help advance their sustainability initiatives and increase the availability of renewable energy in our state.”

 Southern Energy, based in Morrisville, recently completed developing and installing two other megawatt-size solar arrays in the state. It is developing this project with financing partner NxGen Power, based in Charlotte. Southern Energy anticipates creating 13 to 15 new local jobs through the construction phase of the solar array.

 Michael Byrnes, president and chief executive officer of NxGen Power, said, “North Carolina has a unique opportunity to lead the Southeast in renewable energy implementation and innovation. We are proud to partner with the City of Raleigh, Progress Energy, and Southern Energy, to help forge the way.”

 The city and Progress Energy Carolinas, which is headquartered in Raleigh, have already partnered on several “green” initiatives. These include installing energy-efficient LED streetlights and preparing the city for electric vehicles through the NC Get Ready project.

 “Advancing our sustainability is a top City of Raleigh priority,” Raleigh Mayor Charles Meeker said following the council’s approval to pursue a lease agreement. “I am delighted that we can partner with Progress Energy, Southern Energyand NxGenPowerto advance this technology and reduce carbon emissions.”

 In 2008, Raleigh’s Public Utilities Department, which already leads many of the city’s sustainability efforts, started investigating solar PV generation and determined the NRWWTP site was a potential location for an array. This was done with the assistance of Mike Nicklas of Innovative Design, an internationally known and environmentally sensitive architectural firm based in Raleigh and the winner of the city’s 2009 Pioneering Environmental Award.

 The city invited several experienced solar power developers to submit project bids in response to Progress Energy Carolinas’ request for renewable energy proposals, issued initially in November 2007. The company’s request is designed to meet the requirements of North Carolina’s Renewable Energy and Efficiency Portfolio Standard, passed in 2007. After an extensive evaluation process, Progress Energy Carolinas accepted Southern Energy’s proposal.  

More information about Progress Energy is available online .