Port of Los Angeles enters an agreement with Hecate Energy Harborside LLC to build photovoltaic solar power systems
The Port of Los Angeles has entered a long-term agreement with Hecate Energy Harborside LLC, a wholly owned subsidiary of Hecate Energy LLC (HECATE), to build, operate, and maintain photovoltaic (PV) solar power systems (PV Systems) that will generate electricity at multiple site locations within the Port. The PV Systems will feed clean energy to the utility grid operated by the Los Angeles Department of Water and Power (LADWP).
The agreement supports the Port’s larger goals under the San Pedro Bay Ports Clean Air Action Plan (CAAP) to expand the use of clean energy and related infrastructure while continuing to improve air quality throughout Southern California. Key initiatives to date include a 1 megawatt (MW) PV System atop the Port’s World Cruise Center.
Hecate was selected as the operator following a competitive bidding process. Specializing in developing and operating alternative energy generation plants, Hecate will build and operate PV Systems at up to 12 different site locations on Port property with a total capacity of approximately 10 MW. The locations are a mix of rooftop, parking lot, and underutilized ground mount site locations.
The 10 MW of solar energy is enough electricity to power approximately 2500 homes. It also represents approximately one-sixth of the Port’s current power demand.
Under the agreement with the Port, Hecate will operate its PV Systems for 20 years, starting when each site becomes operational. Subject to final approval by the Los Angeles City Council, the PV Systems are expected to begin generating electricity in mid-2016.
The Port will receive approximately 7 percent of Hecate’s gross annual revenue from the sale of its electricity to the LADWP. The Port’s income is projected to total more than $2.8 million over the life of the operating agreement. No costs to the Port are anticipated outside of expedited roofing maintenance.
The solar power generation projects will serve to reduce greenhouse gas emissions and help the LADWP supply clean energy to its customers.
Overall, the increased use of electricity to run ship-to-shore cranes, ships at berth, and terminal equipment has contributed to a dramatic reduction in harmful pollution from port-related operations. Newly release data from the Port’s 2014 Inventory of Air Emissions show emissions of diesel particulate matter down 85 percent, sulfur oxides down 97 percent, and nitrogen oxides down 52 percent since 2005.
The Port committed to installing 10 MW of photovoltaic solar power on its property under an umbrella agreement with the California Office of the Attorney General. The operating agreement with Hecate will help the Port both meet and exceed its commitment.
The Port of Los Angeles is America’s premier port and has a strong commitment to developing innovative strategic and sustainable operations that benefit Southern California’s economy and quality of life. As North America’s leading seaport in terms by container volume and cargo value, the Port of Los Angeles facilitated $290 billion in trade during 2014. Port operations and commerce facilitate more than 148,000 jobs (about one in 12) in the City of Los Angeles and 531,000 jobs (or one in 16) in the five-county Southern California region. The San Pedro Bay Ports support more than 1 million California jobs and 3.1 million nationwide.
Based in Nashville, Tenn., Hecate Energy LLC is a global developer of solar power plants, natural gas-fired power plants, wind power plants, and energy storage solutions that create significant social and economic impact. Founded in 2012, Hecate has more than 2,400 MW of power plants under development around the globe. In Los Angeles, Hecate is developing 28 MW of commercial-scale rooftop and parking lot solar photovoltaic systems as part of the Los Angeles Department of Water and Power’s Bundled Solar Project.
