The Sacramento Municipal Utility District (SMUD) has terminated its power purchase agreement for the Coyote Creek Agrivoltaic Ranch, a proposed solar farm south of Highway 50 near White Rock Road, KCRA reported. SMUD cited supply chain issues, rising costs, environmental concerns, project delays, and ongoing litigation. The project involved D.E. Shaw Renewable Investments (DESRI) and was intended to provide solar power to the area.
According to the KCRA, SMUD CEO Paul Lau thanked DESRI for their collaboration despite the project’s cancellation. He said, “Over the years, SMUD and DESRI have delivered multiple important clean energy projects that benefit our community, and we look forward to continuing our partnership for years to come." SMUD remains committed to fully removing carbon from its power supply by 2030 and reported that about 62% of its power was carbon-free in 2024.
Heather Fargo, president of the Environmental Council of Sacramento, called SMUD’s withdrawal from the Coyote Creek project a victory. The project had faced criticism for potential environmental impacts, including threats to native blue oak woodlands. Fargo told ABC10, “I am really pleased that the SMUD board members, at least the majority of them, listened to the public.” The council, which is involved in a lawsuit against the project’s approval, continues its opposition.
SMUD is pursuing other ways to meet its clean energy targets after stepping back from Coyote Creek. The utility told ABC10 that its 2030 Zero Carbon Plan uses multiple carbon-free energy sources to provide clean, affordable, and reliable power. SMUD has already added over 1,400 megawatts of carbon-free energy, with 1,500 megawatts under review, compared to 1,000 megawatts added over the past two decades.
