Starbucks Supports Renewables for Native American Community
Microgrids often incorporate renewable energy sources like solar, helping communities to reduce their carbon footprint.
They also allow for local control and community ownership of energy resources, promoting energy independence, or the 'democratisation of energy'.
One such community to benefit from a microgrid is the Viejas Group of Capitan Grande Band of Mission Indians.
The US Department of Energy (DOE) announced the closing of a US$72.8m loan guarantee to finance the development of a solar plus long duration energy storage microgrid.
The Viejas Enterprise Microgrid will be built on the Tribal lands of the Viejas Group of Capitan Grande Band of Mission Indians in California, US and developed by Indian Energy.
This project is supported by a grant from the California Energy Commission, investments from US Bancorp Impact Finance and Starbucks.
It aims to provide the Viejas Band with reliable utility-scale renewable energy generation and storage infrastructure.
“The closing of this syndicated financial transaction has not gone without its challenges and is a testament to the commitment of all the parties involved to make this project a success for the Viejas and Indian Country,” says Allen G. Cadreau, CEO at Indian Energy.
About the Viejas Enterprise Microgrid
The microgrid will consist of a 15MW photovoltaic solar generation system and a 70MWh battery long-duration energy storage system.
Chairman John Christman of the Viejas says, “This solar microgrid project will enable us to create a reliable and sustainable source of clean energy for our gaming, hospitality, and retail operations going forward.
“In turn, the associated non-lithium battery system supports the environmental protection and cultural stewardship of our ancestral land, thereby ensuring the vibrant future of our children.”
Once the system is installed, the Viejas Band of Kumeyaay Indians will purchase electricity through the project company under a long-term power purchase agreement (PPA).
The project is expected to create 250 construction jobs and eight permanent operations jobs.
“Indian Energy is committed to developing holistic and sustainable opportunities so that we can maintain a traditional way of life that provides for our seventh generation,” says Allen J. Cadreau, VP of Engineering at Indian Energy and Programme Manager for the Viejas Enterprise Microgrid.
Meet Indian Energy
Indian Energy is 100% Native American Indian-owned and operated.
Founded in 2009, the company is committed to identifying and developing opportunities that ensure tribal energy sovereignty.
Indian Energy has enlisted two supporting tribal nations, Sault Ste Marie Tribe of Chippewa Indians and Turtle Mountain Band of Chippewa Indians, as co-owners in the project company.
Austin Lowes, Chairman of the Sault Ste Marie Tribe of Chippewa Indians, says: “The Tribe invested in Indian Energy to diversify revenue streams, support tribal member owned businesses and facilitate energy development within Indian Country, including our own tribal lands.”
Supporters of the microgrid project
US Bancorp Impact Finance, a subsidiary of US Bank, and Starbucks co-invested in the microgrid project.
“We’re proud to support this project, which brings clean energy to the Viejas Band community to help accelerate energy independence,” says Michael Kobori, Chief Sustainability Officer at Starbucks.
“Together with our partners across public and private sectors, we believe we can build a great business that scales for good, to help ensure a sustainable future for communities that have not historically had access to renewable energy.”
Indian Energy says its finance partners the Viejas, BlackRock Impact Opportunities and Enhanced Capital were a key contribution to the project’s success.
These partners provided bridge financing during the project to enable Indian Energy’s development efforts whilst managing the challenges of being the first project through the DOE’s LPO Tribal Energy Financing Program.
Joseph Acevedo, Managing Director at BlackRock Impact Opportunities, says: “We are proud to partner with Indian Energy as they execute on their ambitious vision of bringing affordable and reliable renewable energy to Indian Country.
“The success of the Viejas microgrid serves as a powerful proof point of their ability to leverage cutting edge technology, inclusive development practices, and public private partnerships to bring this vision into reality.”
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