Aggreko, a supplier of power generation equipment, has entered into an agreement to act as the financing and development partner for a 500MW community solar portfolio in the United States. This ambitious initiative, known as Farmers Powering Communities, aims to establish a robust solar energy infrastructure while preserving farmland and supporting farming communities.
The projects, spearheaded by developer Edelen Renewables, are expected to be completed by the end of the decade, attracting approximately US$1 billion in investment. Aggreko's involvement will be through its Energy Transition Solutions division (Aggreko ETS), offering not only capital investment but also additional development expertise. In fact, Aggreko ETS intends to own and operate some of the projects within the solar portfolio.
Although specific details about the project locations and financial aspects have not been disclosed, the partnership between Aggreko and the Farmers Powering Communities initiative holds great promise for the future of renewable energy. By expanding access to community solar, which provides a cost-efficient alternative for utilizing solar energy, Aggreko aims to contribute to the acceleration of the energy transition, creating a cleaner and more sustainable energy landscape.
The growth potential for the community solar market in the US is significant. Recent research from energy analyst firm Wood Mackenzie predicts that the market will more than double by 2028. This demonstrates the increasing demand for renewable energy solutions and the importance of initiatives like Farmers Powering Communities in meeting that demand.
Prashanth Prakash, the chief commercial officer of Aggreko ETS, expressed the company's commitment to expanding access to community solar and emphasized the alignment of this initiative with their mission. Prakash stated, “Expanding access to community solar, which offers a cost-efficient way for people to use solar energy, aligns with our mission to accelerate the energy transition through clean energy infrastructure that delivers reliable, economic energy.”
The involvement of Aggreko as the financing and development partner, combined with the expertise of Edelen Renewables and other stakeholders, positions the Farmers Powering Communities initiative for success. It not only addresses the urgent need for renewable energy but also addresses the challenges faced by farmers due to climate change. John Piotti, president and CEO of the American Farmland Trust (AFT), highlighted the importance of the partnership, stating, “Farmers are on the frontlines of climate change, experiencing extreme weather events that impact their crops, livestock, and livelihoods. We need to dramatically ramp up solar energy production while retaining our farms and ranches. That's what this partnership is all about. Doing solar the right way and putting it in the right place is what we call Smart Solar.”
The collaboration between Aggreko, Edelen Renewables, and other partners underlines the collective effort to create a sustainable energy future while supporting farming communities. By combining financial resources, development expertise, and a shared vision, this initiative aims to make significant strides in renewable energy production, benefiting both the environment and society as a whole.
