Exploring a State-Tribal Partnership to Advance Energy Goals
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2023-04-01
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Abstract:The Red Lake Nation is exploring the development of a solar project on tribal land. MnDOT has an opportunity to enter into a virtual power purchase agreement (VPPA) with the Red Lake Nation for the purchase of solar electricity. A VPPA is a unique contracting method in which the tribe would develop the project, produce the electricity and sell it into the wholesale energy market. MnDOT would pay a fixed price to purchase the energy and renewable energy credits, and would continue to buy power from the regional utility provider. When the market price is greater than MnDOT’s fixed price, the tribe would pay MnDOT the difference. If the market price is lower, MnDOT would pay the tribe the difference. A VPPA would support the Red Lake Nation’s sovereignty and further the government-to- government relationship, advance shared renewable energy goals and split economic value and risk between MnDOT and the tribe. MnDOT wanted to assess the feasibility of a renewable energy partnership with the Red Lake Nation.
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Content Notes:This Technical Summary pertains to Report 2023-12, “Assessing a Solar Project and a Virtual Power Purchase Agreement Between the Red Lake Nation and the Minnesota Department of Transportation,” published March 2023. More information is available at mdl.mndot.gov.
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Main Document Checksum:urn:sha256:87fb60ed1391533c3d9f2aa2a7fe523483433b6426ae2525542d97fbf803e593
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