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SMUD Cancels Power Purchase Deal for Coyote Creek Solar Farm

The utility cited rising costs, supply chain strains, tariffs, schedule delays, environmental concerns, pending litigation.

Overview

  • SMUD announced Monday that it will not move forward with its 2021 agreement to buy power from D. E. Shaw Renewable Investments’ Coyote Creek Agrivoltaic Ranch.
  • The proposed project spans roughly 2,700 to 3,000 acres in eastern Sacramento County and is designed to combine solar generation with agricultural use.
  • Supporters argue the facility would provide local renewable power and reduce transmission losses, while opponents warn it would remove more than 3,000 old-growth oaks and harm habitat.
  • In November, the Sacramento County Board of Supervisors advanced the proposal, but the project now lacks a committed electricity buyer.
  • SMUD says its supply was about 62% carbon-free in 2024 and it remains committed to eliminating carbon from its power mix by 2030, leaving the project’s future uncertain.