By Tara Fischer

Staff Writer

Berlin has entered into a purchase power agreement (PPA) with American Municipal Power (AMP) to buy renewable energy from the Blue Creek Wind Farm based in Ohio. Officials estimate the move could yield an average savings of $100,000 annually for consumers.

The renewable energy agreement will be in effect from 2026 to 2029. According to a letter to the town from financial consultant Steven Miller from Booth & Associates, the wind farm presents a “good opportunity” for Berlin to save on energy costs. The PPA through AMP could reduce the town’s current energy expenses, which average 41.76 per megawatt-hour (MWh) plus a renewable energy credit (REC) cost of $23- totaling $64/MWh. The town’s rate could drop to $59/MWh with the new PPA. Ultimately, the AMP agreement produces a price lower than what the municipality is currently paying.

According to Berlin’s Utility Director Tim Lawrence, every electric utility in the State of Maryland must acquire a certain amount of its purchase power from renewable energy sources, like wind or solar. Berlin would have to pay a penalty if these expectations are unmet.

Town Mayor Zack Tyndall maintained that consultants often evaluate the prices to determine if obtaining the renewable energy credits (RECs) would be more cost-effective or take the fine.

RECs are used to track and verify the use of renewable energy. As the United States Environmental Protection Agency states, “RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource.”

By acquiring RECs, Berlin can meet the state’s renewable energy mandates.

“Us to purchase renewable energy credits is a state requirement because we have an electric utility,” Tyndall said. “We are unique in that respect.”

Tyndall said it’s hoped the partnership could help with meeting the requirements handed down by the state.

“Some years, we will take a penalty if it is going to be more expensive to acquire the RECs,” Tyndall said. “But in this analysis, it is actually going to be advantageous for us to acquire the RECs, so as [Lawrence] noted, our consultants said it is better to lock in this right now and potentially save $100,00 a year for the duration [of the agreement].”

The letter from Miller adds the town needs 18.45% of its total electricity sales, measured in kilowatt-hours (kWh), to come from non-solar renewable sources. AMP initially requested to allocate 2.3 megawatts (MW) of wind power to Berlin. However, increasing this to 2.7 MW would cover around 16% of the town’s sales. Since 2.7 MW does not quite reach the 18.45% goal, the suggestion is to adjust the allocation to be closer to the 18.45% without going over it to “get what you need and not have to sell RECs.”

The Berlin Town Council unanimously passed the AMP agreement at its Monday, Oct. 28 meeting.