Valley Clean Energy Board of Directors Meeting – Thursday, April 9, 2026 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA 1 yvonnehunterphotography.com
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Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Agenda
3 Agenda:
• Background
• Overview
• Key Contract Terms
• Other Details
• Microgrid Incentive Program
• Project Economics
• Strategic Plan Goals
• Conclusion and Recommendation
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Background
• PPA signed Gibson solar + BESS PPA in 2020 out of VCE local RFO, along with Putah Creek solar + BESS project.
• Initial project resized to reduce interconnection delays, facilitate permitting, and support California Department of Food and Agriculture microgrid grant application. • 1
st amended and restated PPA signed April 2023; increased price, changed size (decreased storage and increased PV) and extended development timeline. • In 2023 to 2025 Gibson faced delays in procuring gen-tie easements and securing mitigating lands for Williamson Act.
• Market changes increased costs – One Big Beautiful Bill Act imposed restrictions on panel sourcing, and tariffs and overall inflation increased costs. 4 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Background
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 5 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Overview
Counterparty Gibson Renewables, LLC
Developer Emeren US, LLC
Location Yolo County, near Madison, CA, just SW of
Hwy 16 and Hwy 89
PV Capacity 26 MWdc, 13 MWac
Storage Capacity 65 MWh (13 MWac x 5 hours)
Term 20 years
Guaranteed
Construction Start Date 12/31/26
Guaranteed Commercial
Operation Date 6/30/2028
Expected Energy Approx. 52,000 MWh, or approx. 5.8% of
2029 load
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Key Contract Terms of the Second Amended and Restated PPA • Extends contract milestones by approximately 2 years:
• Guaranteed Construction Start Date to December 31, 2026 • Guaranteed Commercial Operation Date June 30, 2026.
• Increases the installed PV capacity from 25.2 MWdc to 26 MWdc. • Increases the price of renewable energy and storage capacity. • Price adjustment mechanisms for equipment cost, property taxes, and microgrid funding. • Increased penalties for failure to provide resource adequacy. • Support for VCE’s Microgrid Incentive Program grant application. • VCE right of first offer (ROFO) to purchase the Gibson project. 6 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Key Contract Terms
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Other Details
• 101-acre conservation easement to mitigate taking Williamson Act land out of production; just north of Woodland
• Recently received CAISO allocation of 100% full capacity deliverability status, so will count toward resource adequacy requirements
• Gibson intends to qualify for the Investment Tax Credit by safe harboring equipment in 2026 7 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Other Details
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Microgrid Incentive Program:
• PG&E’s CPUC-funded Microgrid Incentive
Program provides funds to support the
development of microgrids to increase
resiliency.
• On December 17, 2025, VCE applied for a
$14 million MIP grant for the Gibson
project to provide microgrid services to
the Capay Valley.
• The 2nd A&R PPA requires Gibson to
support the microgrid application and
implementation and reduces the PPA price
if MIP funds can be applied to the project.
• Decision on MIP funding expected June
2026.
8 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Microgrid Incentive Program
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Project Economics
• PPA prices have increased steadily in the last 5
years.
• Supply chain shocks, tariffs and changes in
federal law and policy have increased costs.
• Amended Gibson PPA price is competitive with
market prices.
9 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Project Economics
https://pv-magazine-usa.com/2026/01/30/uncertainty-looms-as-solar-ppa-prices-climb-for-second-straight-quarter/ Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 10 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Strategic Plan Goals
https://valleycleanenergy.org/wp-content/uploads/VCE-Strategic-Plan-2026-2029-Major-Update-approved-10-14-2025.pdf Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] Conclusion
• The initial Gibson project was higher cost and delayed due to development issues outside of the developer’s control
• The 2nd A&R PPA is competitively priced, contributes toward regulatory mandates, and supports VCE’s strategic plan goals for local procurement and resiliency
Staff Recommendation
• Approve resolution authorizing the Executive Officer to execute the 2nd amended power purchase agreement (PPA) and any necessary ancillary documents for the Gibson renewable photovoltaic (PV) plus battery storage (BESS) project
11 Item 14 – Gibson Solar + Storage 2nd Amended and Restated PPA Conclusion and Recommendation
Valley Clean Energy Board of Directors Meeting – Thursday, April 9, 2026 Item 15 - Ratify VCE Positions on Three Legislative Bills 12 yvonnehunterphotography.com
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Public Comments
13 To Provide Public Comment on any agenda item please:
➢ E-mail 300 words or less to: [email protected] OR
Join the Public Comment Queue by
➢ “Raising Hand” on Zoom Meeting
OR
➢ Press *9 if joining by phone
Emailed comments received before the item has concluded will be read into the record.
Emailed comments received after the item has concluded but before the end of the meeting will not be read but will be included in the meeting record.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 14 Item 15: Ratify VCE Positions on Three Legislative Bills
1. Support: AB 1761 (Rogers). Improving PCIA Transparency. • VCE Position: Support
• VCE Legislative and Regulatory Platform: Power Cost Indifference Adjustment (PCIA) • CalCCA Position: Sponsor
• Summary: Seeks to increase the transparency of IOU electricity contracts and any other factors that provide the basis for PCIA charges that VCE (and its customers) and other CCAs must pay.
2. Support: SB 1138 (Padilla). RA Transactability
• VCE Position: Support
• VCE Legislative and Regulatory Platform: Resource Adequacy • CalCCA Position: Sponsor
• Summary: Allows load serving entities like VCE to transact RA load obligations on an hourly basis to align with the new slice-of-day Resource Adequacy (RA) program.
Item X – Short Title and Slide Description [Calibri (Body) 29 font (not bold)] 15 Item 15: Ratify VCE Positions on Three Legislative Bills
3. AB 2383 (Zbur). Large Load Rate Setting Authority.
• VCE Position: Oppose Unless Amended
• VCE Legislative and Regulatory Platform: Governance and Statutory Authority • CalCCA Position: Oppose Unless Amended
• Summary: Gives rate setting authority to the CPUC for large loads for all load serving entities, including CCAs.
• Requested amendment: delete CPUC authority to set large load rate criteria that applies to CCAs