PHILADELPHIA – The City of Philadelphia is procuring long-term, clean, affordable electricity from a large-scale solar energy project. The 20-Megawatt (MW) Abes Run Solar project builds upon past success sourcing electricity through a power purchase agreement (PPA).
Once complete, Abes Run Solar will supply an estimated 5 percent of municipal electricity use – equivalent to six times City Hall’s annual electricity use. The PPA will supply the city with 20 years of electricity at a fixed rate.
The Philadelphia Energy Authority (PEA) holds the contract with Pittsburgh-based Oriden Power, a Mitsubishi Power Americas Company. The project locks in savings while making progress toward the goal of powering City operations with 100-percent clean and renewable electricity.
Power generated from the 92-acre project site in Clearfield County, Pa. will feed into the regional grid, offsetting higher-cost energy supplies and qualifying the City of Philadelphia to receive renewable energy credits through Pennsylvania’s Alternative Energy Portfolio Standard.
“My administration is committed to progress that delivers cleaner air, lower costs, and a more resilient future. With projects like Abes Run Solar, the City of Philadelphia is leading by example,” said Mayor Cherelle L. Parker. “Abes Run Solar is proof that large cities like Philadelphia can achieve our sustainability and fiscal responsibility objectives. We get affordable, zero-carbon electricity for decades to come. We create good-paying jobs. And we make our city cleaner, greener, and more sustainable.”
The project will be the City’s second utility-scale PPA, building upon the success of Adams Solar, a 70-MW facility that finished construction in 2024. Added together, the projects supply renewable energy that accounts for roughly 30 percent of municipal electricity needs.
Abes Run Solar is part of a multi-year sustainable operations strategy, laid out in the Municipal Energy Master Plan. By 2030, the City plans to achieve a 50-percent reduction in built environment carbon emissions and 20-percent reduction in building-sector energy use – on top of the goal of sourcing 100-percent renewable electricity – all while reducing or maintaining City operating costs.
“This project meets all our goals: delivering 20-Megawatts of clean and green energy for the city, bringing us closer to our goal of 100 percent zero-carbon renewable electricity, while providing a fixed-rate price hedge for 20 years,” said Elizabeth Lankenau, Director of the Philadelphia Office of Sustainability. “The agreed-upon price guarantee locks in affordable, zero-carbon electricity supplies and, with it, much-needed budget stability.”
The Office of Sustainability modeled future energy prices, reaching agreement on a pricing structure that delivers competitive electricity supplies at a time when growing energy consumption is forecast to drive up prices and carbon emissions across the region.
“As utility prices continue to rise, the City’s leadership on clean energy is common sense,” said Emily Schapira, CEO of the Philadelphia Energy Authority. “Solar power provides long-term financial and environmental benefits for Philadelphia. We continue to support the City to leverage all tools at our disposal to manage costs, plan for the future, and protect Philadelphians.”
“The City of Philadelphia’s investment in solar shows great leadership and ensures its energy generation needs are met sustainably and affordably. Oriden values the City of Philadelphia’s collaboration and we will execute with a focus on exceptional quality,” said Michael Berlin, COO of Oriden. “As a Pennsylvania-based developer, we take pride in our ability to leverage local partnerships within the Commonwealth. Supplying my childhood hometown with clean, affordable electricity is an added bonus.”
About the City’s Office of Sustainability
The Office of Sustainability (OOS) works with partners around the city to improve quality of life in all Philadelphia neighborhoods, through addressing environmental justice, reducing the city’s carbon emissions, and preparing Philadelphia for a hotter and wetter future. The Division of Energy & Climate Solutions, housed within OOS, is responsible for managing the municipal energy portfolio and its contribution towards carbon reductions. For more information, please visit phila.gov/sustainability.
About the Philadelphia Energy Authority
The Philadelphia Energy Authority (PEA) is an independent municipal authority building a robust, equitable clean energy economy for Philadelphia. PEA runs the Philadelphia Energy Campaign, a $1 billion, 10-year investment in energy efficiency and clean energy projects to create 10,000 jobs. PEA has supported over $1 billion in projects and created over 8,400 jobs so far. Learn more at www.philaenergy.org.