Philadelphia Finalizes New Solar Deal: Abes Run Lights Up City Buildings
Published · 3 min read
The city of Philadelphia has taken another big step toward clean power with a new solar-energy deal. The newly approved solar project, the Abes Run Solar Project, will supply electricity to municipal buildings — helping the city work toward its goal of being powered entirely by renewables.
What is Abes Run, and what will it do?
- The Abes Run project is a 20-megawatt solar farm being built in Clearfield County, Pennsylvania by Oriden Power, a subsidiary of Mitsubishi Power.
- When complete — expected by the end of 2026 — Abes Run is projected to supply about 5% of the electricity needs of Philadelphia’s municipal operations. That’s roughly the amount used by six City Hall–sized buildings together.
- The city has signed a 20-year power purchase agreement (PPA) for this solar energy, locking in a fixed rate over two decades.
This will be Philadelphia’s second large-scale solar purchase. The first was from the Adams Solar Farm near Gettysburg — which began delivering power in 2024 and now provides about 25% of the city’s municipal electricity. Combined with renewable-energy credits and the new deal, Philly expects around 36% of its municipal electricity to come from renewables after Abes Run comes online.
Why This Matters: Clean Power, Cost Savings & Climate Goals
Cleaner energy & sustainability
By buying power from solar farms instead of relying only on the regional grid (which still uses fossil fuels), Philly is reducing carbon emissions tied to city operations. Officials say this is part of a broader plan to cut building-sector emissions and energy consumption by 2030.
Price stability and budget protection
Because the PPA fixes the price for 20 years, the city shields itself from volatility in wholesale electricity prices. The fixed-rate deal acts as a hedge — even if traditional energy costs rise, municipal electricity bills remain stable.
City officials say the rate is still competitive and makes economic sense long-term, even though it’s slightly higher than current grid prices.
Progress toward 100% renewable goal
Philadelphia has set an ambitious target: powering all city operations with 100% clean, renewable electricity by 2030. With Adams Solar and now Abes Run, the city is steadily closing the gap.
Challenges & Wider Context
- The Abes Run power rate locked in by the PPA comes out a bit higher than what the city currently pays under the regional grid. But officials argue the difference is reasonable given long-term price certainty.
- The federal policy environment has changed. Recent rollbacks to some solar tax credits and national-level incentives make solar projects more financially challenging. That has affected pricing and forced Philadelphia to re-evaluate the economics before finalizing the deal.
- Even with both large solar contracts, the city isn’t yet close to 100% — roughly one–third of municipal electricity will come from renewables once Abes Run is active. Much work remains to decarbonize fully.
Quick Facts
What This Means for Cities & Renewable Energy Moves Elsewhere
Philadelphia’s approach offers a strong example of how medium-large cities can commit to clean energy — even when national incentives waver. A few lessons from this case:
- Long-term contracts (PPAs) can help lock in stable clean energy, especially when electricity markets are volatile.
- Combining multiple renewable sources (here, two solar farms + renewable credits) helps build toward ambitious climate goals steadily, not overnight.
- Municipal leadership matters. Cities can lead by example: even if the national grid remains partly fossil-powered, municipal buildings and operations can be decarbonized early.
- Resilience & budget certainty. Clean-energy investments can also serve fiscal stability — protecting public budgets from future energy-price spikes.
For other cities (in the U.S. or globally), especially those planning their own renewables roadmap, Philadelphia’s example shows how to combine ambition, economics, and risk-management in the transition.
