EDP Renewables North America Announces 20-Year PPA with California Water Service

Rhea-AI Summary

EDP Renewables North America (EDRVY) has signed a 20-year power purchase agreement (PPA) with California Water Service (Cal Water) for an onsite solar installation at Cal Water's Northeast Bakersfield Treatment Plant. The 1.75 MWac/2.35 MWdc solar photovoltaic array is expected to generate approximately 3,800 megawatt-hours of renewable energy annually.

The project is anticipated to reduce grid energy costs by $1.7 million over the agreement term for customers in the Bakersfield District. EDPR NA currently operates 1,138 MW of clean energy assets in California, with its distributed generation portfolio including over 180 projects totaling 75 MWac/81 MWdc in operation.

Positive

• Expected $1.7 million reduction in grid energy costs over 20 years
• Generation of 3,800 megawatt-hours of renewable energy annually
• Strengthens EDPR's presence in California with addition to existing 1,138 MW portfolio
• Long-term revenue visibility through 20-year PPA structure

Negative

• Long 20-year commitment period may limit flexibility for both parties
• Project returns dependent on future electric rate developments

Power purchase agreement will provide Cal Water with 20 years of on-site distributed solar power at key Bakersfield District treatment facility

Renewable energy generated by the solar array is anticipated to reduce grid energy costs by approximately $1.7 million over the term of the agreement

BAKERSFIELD, Calif., July 23, 2025 /PRNewswire/ -- EDPR NA Distributed Generation LLC (EDPR NA DG), the distributed generation business of EDP Renewables North America LLC (EDPR NA), and California Water Service (Cal Water) have signed a 20-year power purchase agreement (PPA) for a 1.75 MWac /2.35 MWdc onsite solar photovoltaic (PV) array at Cal Water's Northeast Bakersfield Treatment Plant. The partnership is designed to reduce the utility's long-term environmental footprint.

Cal Water and EDPR NA DG expect the system to generate approximately 3,800 megawatt-hours of renewable energy annually. The renewable energy generated by the solar array is anticipated to reduce grid energy costs by approximately $1.7 million over the term of the agreement, based on current electric rates for customers in the Bakersfield District, one of Cal Water's largest service areas.

"At Cal Water, we are dedicated to being a responsible environmental steward, and partnering with EDPR NA DG will help us reduce traditional power costs, reach our science-aligned greenhouse gas emissions reduction targets, and increase sustainability," said Marty Kropelnicki, Cal Water Chairman and CEO. "We look forward to bringing this new onsite solar array online, which is an important step for us to continue providing safe, reliable, and affordable water service to our customers for decades to come."

"California is a national clean energy leader because of organizations like Cal Water, which prioritize supporting renewable energy investments," said João Barreto, EDPR NA Distributed Generation CEO. "This partnership demonstrates the ever-increasing convergence of the water-energy nexus, and the importance of investment in vital infrastructure throughout California."

EDPR NA and EDPR NA DG have been actively engaged in California for more than two decades, developing utility-scale and distributed-scale solar projects to support the state's growing energy demand. EDPR NA operates 1,138 MW of clean energy assets in California powering the equivalent of 451,000 homes. EDPR NA DG's portfolio in California spans more than 180 projects, including 75 MWac/81 MWdc in operation. In May 2024, EDPR NA announced the completion the 200 MW Scarlet II Solar Energy Park in Fresno County, California. Scarlet II follows EDPR NA's Scarlet I Solar Energy Park (Scarlet I), consisting of 200 MW of solar and 40 MW/160 MWh of battery energy storage system (BESS), which achieved commercial operation in 2024.

Multimedia resources include: 

• EDPR NA DG: Fact Sheet
• EDPR NA DG work with Municipalities and Local Government: Website
• EDPR NA (Utility-Scale Projects) in California: Fact Sheet

About California Water Service

California Water Service provides high-quality, reliable water utility services to more than 2.1 million people statewide through 499,400 service connections. Cal Water's purpose is to enhance the quality of life for customers and communities. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company's 1,200 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The utility has been named one of "America's Most Responsible Companies" and one of the "World's Most Trustworthy Companies" by Newsweek, a USA Top Workplace, and a Great Place to Work®.  More information is available at www.calwater.com.

About EDPR NA Distributed Generation

At EDPR NA Distributed Generation LLC, accelerating the adoption and success of distributed generation is at the core of our mission. EDPR NA DG provides cutting-edge innovative renewable energy services to the entire North American region. Built on long-standing relationships with developers, power generators, corporate purchasers, municipalities, and local communities, EDPR NA DG delivers a full suite of offerings ranging from financing and development to construction and operation of energy and storage assets poised to scale. To date, EDPR NA DG has an operating capacity of 345 megawatts (MW) across 546 active sites.
For more information, visit www.edprnadg.com and follow us on LinkedIn.

About EDP Renewables North America

EDP Renewables North America LLC, its affiliates, and its subsidiaries develop, construct, own, and operate wind farms, solar parks, and energy storage systems throughout North America. Headquartered in Houston, Texas, with 61 wind farms, 26 solar parks, and eight regional offices across North America, EDPR NA has developed more than 12,000 megawatts (MW) and operates more than 11,400 MW of onshore utility-scale renewable energy projects. With more than 1,000 employees, EDPR NA's highly qualified team has a proven capacity to execute projects across the continent.

For more information, visit www.edprnorthamerica.com and follow us on LinkedIn.

About EDP Renewables

EDP Renováveis, S.A. (Euronext: EDPR) is a global leader in renewable energy development with a presence in 28 regions in Europe, North America, South America and Asia-Pacific. With headquarters in Madrid and leading regional offices in Houston, São Paulo and Singapore, EDPR has a sound development portfolio of top-level assets and market-leading operating capacity in renewable energies. Particularly worthy of note are onshore wind, distributed and large-scale solar, offshore wind (OW - through a 50/50 joint venture), and technologies to complement renewables such as storage and green hydrogen.

EDPR's employee-centered policies have received recognition such as Top Workplace 2023 in the USA, Top Employer 2023 in Europe (Spain, Italy, France, Romania, Greece, Portugal and Poland) Colombia and Brazil, and are also included in the Bloomberg Gender-Equality Index.
EDPR is a division of EDP, S.A. (Euronext: EDP), a leader in the energy transition with a focus on decarbonization. Besides its strong presence in renewables (with EDPR and hydro operations), EDP has an integrated utility presence in Portugal, Spain and Brazil including electricity networks, client solutions and energy management.

EDP – EDPR's main shareholder – has been listed on the Dow Jones Index for 16 consecutive years, recently being named the most sustainable electricity company on the Index.

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SOURCE EDP

FAQ

What is the size of EDRVY's new solar project with Cal Water in Bakersfield?

The solar installation will be a 1.75 MWac/2.35 MWdc photovoltaic array located at Cal Water's Northeast Bakersfield Treatment Plant.

How much will Cal Water save through the EDRVY solar power agreement?

Cal Water is expected to save approximately $1.7 million in grid energy costs over the 20-year term of the agreement.

How much renewable energy will EDRVY's Bakersfield solar project generate annually?

The solar array is expected to generate approximately 3,800 megawatt-hours of renewable energy annually.

What is EDRVY's current renewable energy capacity in California?

EDPR NA operates 1,138 MW of clean energy assets in California, powering the equivalent of 451,000 homes, including over 180 distributed generation projects.

How long is the power purchase agreement between EDRVY and Cal Water?

The power purchase agreement (PPA) between EDRVY and Cal Water is for a term of 20 years.