Boulder council leases last piece of 8,000 acres for solar energy

The Boulder City Council on Tuesday agreed to lease the last 884 acres out of about 8,000 acres it had set aside for solar energy development.

Korean Western Power, or KOWEPO, prevailed over five other companies to get the lease. The company will build a solar energy generating plant with a capacity of up to 120 megawatts using photovoltaic solar panels.

In return, the city each year will receive $2,100 per acre, plus a $605 royalty payment per acre, for the 50-year life of the lease, said City Manager Vicki Mayes. The city chose the royalty payments over an offer from KOWEPO to build it a 1.5 megawatt power station.

Kowepo also will pay the city $3.5 million during the construction phase.

Jack Dangelo of DMP Energy, a partner with KOWEPO, told council members work would begin immediately.

"This is the last area to lease for solar," said Mayor Roger Tobler. "We knew the timing was right. This was a goal of staff and the City Council for many years."

KOWEPO produces about 12 percent of the electricity in Korea. The Boulder City project, which is home to several solar operations already established or in the planning stage, is its first in the U.S.

Dangelo said the plant will be "up and running" in about 33 months.