As part of the contract renewal, the City will power all municipal operations with renewable energy and realize $65 million in savings over the seven-year contract. Through the NRG Renewable Select plan, the City will receive 1,034,399 MWh of renewable electricity annually from a new, third-party utility-scale solar facility in Texas that is dedicated to City operations.
“This announcement is a shining example of how the Houston Climate Action Plan is already in motion. Expanding our renewable energy investment through our partnership with NRG helps us build a more sustainable city and save over $9 million per year on our electric bill. Together, we are leading by example and showing how to reduce emissions in the Energy Capital of the World,” said Mayor Sylvester Turner.
Today’s announcement is the City’s first step to implement the recently-released Houston Climate Action Plan, a science-based, community-driven strategy for Houston to achieve carbon neutrality by 2050 and lead the global energy transition.
The plan identified growing Houston’s investment in renewable energy as a central goal of reducing greenhouse gas (GHG) emissions and called for the City to power municipal operations with 100% renewable energy by 2025. Houston is already the top municipal user of renewable energy in the country, according to the US EPA, and has a 50MW power purchase agreement for a solar facility in Alpine, TX.
“We are proud to support the City of Houston with renewable power. Our sustainable and more resilient future depends on collaborative action and partnerships like this, and the city is making a meaningful impact. Houstonians can take pride in the city’s transition to more efficient sources of energy and we look forward to offering our support, now and into the future.” said Mauricio Gutierrez, President & CEO, NRG Energy.
As part of the City’s renewed partnership with NRG, the City will begin purchasing 100% renewable energy starting July 1, 2020, through a five-year contract with two one-year renewal options.
NRG will also support the Houston Climate Action Plan implementation through sustainability consulting support, energy efficiency funding, and an affinity program to help City employees purchase discounted renewable energy.