Sempra Infrastructure and Silicon Valley Power Sign Agreement for Renewable Energy Supply
HOUSTON, Oct. 27, 2022 /PRNewswire/ -- Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), and Silicon Valley Power (SVP) announced today they have entered into a 20-year power purchase agreement (PPA) for the long-term supply of renewable energy to the City of Santa Clara, Calif., from the proposed Cimarrón wind project, Sempra Infrastructure's cross-border wind generation facility under development in Baja California, Mexico.
Cimarrón is expected to be a 300-megawatt (MW) wind generation facility that utilizes Sempra Infrastructure's existing cross-border high voltage transmission line to interconnect and deliver clean energy to the East County Substation in San Diego County.
"We are excited to work with the City of Santa Clara, home to some of the world's largest technology companies, to provide access to renewable energy that can help meet their energy demands while supporting their sustainable energy goals," said Justin Bird, CEO of Sempra Infrastructure. "This agreement underscores our commitment to advancing the development of our North American clean energy portfolio as we continue to help create a cleaner energy future."
"Silicon Valley Power continues to make strategic long-term investments in clean energy and add diverse energy resources to our power portfolio," said Manuel Pineda, Chief Electric Utility Officer of Silicon Valley Power. "We are excited to partner with Sempra Infrastructure to add clean energy resources to help meet our sustainability and climate goals."
Cimarrón is being developed to include approximately 60 wind turbines with a capacity to produce enough energy equivalent to the annual energy consumption of more than 84 thousand homes and is expected to reduce greenhouse gas emissions by nearly 210,000 metric tons of carbon dioxide equivalent (CO2-eq) per year. The construction of the new facility is expected to create more than 2,000 direct and indirect jobs in Mexico with additional local community investment under Sempra Infrastructure's framework for corporate giving as part of the company's commitment to the communities where it operates.
The development of Cimarrón is subject to a number of risks and uncertainties, including securing all necessary commercial agreements and permits and other factors, including reaching a final investment decision.
Advancing cleaner energy
As one of the leading producers of clean energy in Mexico, Sempra Infrastructure is focused on developing infrastructure to support the deployment of cleaner energy and the expansion of energy networks in North America. Sempra Infrastructure owns and operates more than 1,000 MW of renewable capacity from two wind generation facilities and five solar parks. All together, these projects generated over 2.5 million MWh of net renewable energy in 2021, equivalent to reducing emissions by more than 1 million tons of CO2.
About Sempra Infrastructure
Sempra Infrastructure delivers energy for a better world. Through the combined strength of its assets in North America, the company is dedicated to enabling cleaner energy for its customers. With a continued focus on sustainability, innovation, world-class safety, championing people, resilient operations and social responsibility, its more than 2,000 employees develop, build and operate clean power, energy networks and LNG and net-zero solutions, that are expected to play a crucial role in the energy systems of the future. For more information about Sempra Infrastructure, please visit http://www.semprainfrastructure.com and Twitter.
About the City of Santa Clara
Located at the heart of Silicon Valley, about 45 miles south of San Francisco, the City of Santa Clara truly is "The Center of What's Possible." Incorporated in 1852, Santa Clara covers an area of 19.3 square miles with a population of 129,498. Santa Clara is home to an extraordinary array of high-tech companies, including Applied Materials, Intel, Nvidia, Oracle, and Ericsson. The City of Santa Clara is also home to Santa Clara University, California's Great America Theme Park, and Levi's® Stadium, home of the San Francisco 49ers and Super Bowl 50. For more information, visit SantaClaraCA.gov.
About Silicon Valley Power
Silicon Valley Power (SVP) is the trademark adopted for use by the not-for-profit electric municipal utility of Santa Clara, CA, serving residents and businesses for over 125 years. SVP provides power to nearly 55,000 customers at rates 25 to 48 percent below neighboring communities. SVP is the only full-service, vertically integrated publicly owned utility in Silicon Valley owning generation, transmission and distribution assets. For more information, visit SiliconValleyPower.com.
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.
In this press release, forward-looking statements can be identified by words such as "believes," "expects," "intends," "anticipates," "contemplates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "target," "outlook," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.
Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include risks and uncertainties relating to: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, and other actions by (i) the U.S. Department of Energy, Comisión Reguladora de Energía, U.S. Federal Energy Regulatory Commission and other regulatory and governmental bodies and (ii) the U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries in which we do business; the success of business development efforts, construction projects and acquisitions and divestitures, including risks in (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent or approval of partners or other third parties, including governmental and regulatory bodies; civil and criminal litigation, regulatory inquiries, investigations, arbitrations, property disputes and other proceedings; changes to laws and regulations, including certain of Mexico's laws and rules that impact energy supplier permitting, energy contract rates, the electricity industry generally and the import, export, transport and storage of hydrocarbons; cybersecurity threats, including by state and state-sponsored actors, to the energy grid, storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-parties with which we conduct business, all of which have become more pronounced due to recent geopolitical events and other uncertainties, such as the war in Ukraine; failure of foreign governments, state-owned entities and our counterparties to honor their contracts and commitments; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our debt service obligations; the impact of energy and climate policies, laws, rules and disclosures, as well as related goals and actions of companies in our industry, including actions to reduce or eliminate reliance on natural gas generally and the risk of nonrecovery for stranded assets; the pace of the development and adoption of new technologies in the energy sector, including those designed to support governmental and private party energy and climate goals, and our ability to timely and economically incorporate them into our business; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or subject us to liability for damages, fines and penalties, some of which may be disputed or not covered by insurers or may impact our ability to obtain satisfactory levels of affordable insurance; inflationary and interest rate pressures, volatility in foreign currency exchange rates and commodity prices, and our ability to effectively hedge these risks; the availability of natural gas; the impact of the COVID-19 pandemic on capital projects, regulatory approvals and the execution of our operations; changes in tax and trade policies, laws and regulations, including tariffs, revisions to international trade agreements and sanctions, such as those that have been imposed and that may be imposed in the future in connection with the war in Ukraine, which may increase our costs, reduce our competitiveness, impact our ability to do business with certain counterparties, or impair our ability to resolve trade disputes; and other uncertainties, some of which are difficult to predict and beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra's website, https://www.sempra.com/. Investors should not rely unduly on any forward-looking statements.
Sempra Infrastructure is not the same company as San Diego Gas & Electric Company or Southern California Gas Company, and neither Sempra Infrastructure nor any of its subsidiaries is regulated by the California Public Utilities Commission.
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SOURCE Sempra Infrastructure
