General

New agreement provides OPPD with 300 megawatts of wind energy

Omaha Public Power District is in the midst of a massive effort to double its generation capacity by the end of this decade amid surging customer demand, while simultaneously working to achieve net-zero carbon by 2050.

OPPD just announced a power purchase agreement (PPA) with EDF Renewables, effective September 1, that will help meet those goals. Under the deal, OPPD is receiving the full capacity of the Milligan I Wind Project in Saline County, 300 megawatts (MW). That’s enough to power up to 115,000 homes.

Utility leaders discussed the PPA with the OPPD Board of Directors during committee meetings Tuesday.

“By adding this project, we are continuing to augment and diversify our energy portfolio,” said OPPD President and CEO Javier Fernandez. “That’s critical to reliability. If for any reason, one type of generation is unavailable, we have other sources to pull from.”

Wind, for instance, proved extremely useful during Winter Storm Gerri in January 2024. OPPD’s power plants along the Missouri River struggled due to frozen water and equipment. But other sources – including natural gas, wind and solar – were able to pick up the slack.

“Having that flexibility, that diversity, in our generation fleet is incredibly important no matter what time of year or what type of severe weather we may experience. I cannot emphasize that enough,” Fernandez said.

John Shultzabarger, Senior Director of Power Marketing at EDF Renewables, said, “Milligan 1 will enable OPPD to meet the rapidly increasing demand for electricity in their service area while strengthening their commitment to provide sustainable energy solutions for the customers they serve.

“We are thrilled to be part of this partnership and look forward to taking on more such initiatives in the future.”

Milligan I has been operating for three years in the Southwest Power Pool (SPP) marketplace. SPP is the regional transmission organization for OPPD and other utilities and organizations across 14 states.

Adding renewable sources

“This is the third big renewable energy project we’re announcing in as many months,” Fernandez said.

At OPPD’s May board committee meetings, the utility announced a clean capacity collaboration with Google and NextEra Energy Resources LLC. The collaboration allows OPPD to access 600 MW of wind capacity from NextEra Energy Resource’s High Banks Wind Energy Center. That facility has been online since December 2023 as a part of Google’s long-term, clean energy portfolio. Google is now supplying this capacity resource to OPPD and will retain the energy and environmental attributes from the project to support its 24/7 carbon-free energy goals.

In addition, Platteview Solar went online in Saunders County on May 1, generating 81 MW of electricity for OPPD. A ribbon-cutting celebration for the facility, owned and operated by AES, was held July 11.

“I am so proud of our team,” Fernandez said. “It takes a ton of work by our employees and partners to bring these projects to fruition and help ensure our customers have the power they need when they need it.”

Rapidly growing demand

OPPD anticipates the energy needs in its 13-county service territory will grow at a rate of over 100 MW annually for the foreseeable future. That’s the equivalent of adding 65 new metro-area high schools or midsize hospitals in just one year. Just a few years ago, adding a modest 4 MW per year would have met customers’ needs.

The growth in demand arises from the development of new homes, schools, businesses and larger industrial customers that increasingly need more electricity to operate. OPPD also must comply with the SPP’s reserve margin requirement, which mandates that member utilities maintain enough capacity to meet their net peak demand, plus an extra margin of 15%. That’s up from 12% previously, as utilities nationally work to enhance their reliability amid the prospect of more extreme weather.

Two more natural gas power plants are expected to come online by the end of 2024. Standing Bear Lake Station will produce 150 MW of generation in Douglas County, and Turtle Creek Station (TCS) will produce 450 MW of generation in Sarpy County. The plants will provide firm power as needed during times of peak energy usage. They will also help balance supply and demand within the market. By 2030, TCS will add an additional 225 MW natural gas generation unit, and OPPD’s existing Cass County Station will add 675 MW from three 225 MW natural gas generation units.

‘OPPD will rise to the challenge’

“All told, OPPD plans to add 3,200 megawatts of generation to its portfolio between 2024 and the end of this decade. That’s incredible. It supports the vibrant Nebraska economy and provides the reliability our customer-owners deserve,” said Fernandez.

The utility expects up to 1,600 MW of the new generation to come from renewables like wind and solar.

“We are making a lot of progress, but we still have a lot of work ahead of us to meet the kind of demand growth we’re seeing,” said Fernandez. “OPPD will rise to the challenge. Our customers are counting on us, and we will not let them down.”