City Council approves amending solar project agreement

SIDNEY -- In November 2022, the Sidney City Council entered a land-lease, interconnection agreement, with Sandhills Energy, LLC.

Tuesday the council approved amending the agreement, allowing the company to rent more City land at $500 per acre. The Sidney City Council Tuesday approved an amended agreement with Sandhills Energy, LLC., regarding a solar facility on East Elm Street in Sidney.

"There has been some hang-up on the first right of refusal. First I want to point out the financial implications. The City would lease the land, not rent it. We want to rent our own ground so we would actually be leasing that ground," Mike Palmer, Sidney's electric superintendent said.

Palmer said Sandhills is wanting a decision based upon whether the City wants to lease the land.

The power produced would be outside of the power purchase agreement (PPA) the City agreed on with Sandhills Energy. The Municipal Energy Agency of Nebraska (MEAN) has a 5 percent threshold for renewable energy. In the event MEAN raises the threshold, Sidney would have the first right of refusal to have the contract moved from MEAN to the City.  

The council accepted the agreement as presented.