Willdan Secures $11M Green Energy Project for South Lake Tahoe's Climate Action Plan

Willdan Secures $11M Green Energy Project for South Lake Tahoe’s Climate Action Plan

January 7, 2025

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Willdan Group (NASDAQ: WLDN) has secured an $11 million energy and infrastructure modernization project from the City of South Lake Tahoe, California. The two-year initiative aims to combine energy and operational efficiencies to support the city’s future growth and sustainability goals.

The project scope includes installation of a cogeneration microturbine, photovoltaic solar panels with 415 kWdc capacity, and advanced building automation systems across all City-operated buildings. Additional implementations include right-sized water meters, energy-efficient power transformers, and a new CO2 ice plant for the community’s ice arena.

This initiative aligns with South Lake Tahoe’s Climate Action Plan, which targets 100% municipal renewable energy by 2032 and a 50% reduction in community-wide emissions by 2030.

Positive

Secured new $11 million contract with City of South Lake Tahoe
Two-year project duration provides steady revenue stream
Project strengthens company’s position in municipal energy efficiency sector

Negative

Insights

The $11 million contract win demonstrates Willdan’s growing footprint in the municipal clean energy infrastructure sector. The project scope encompasses critical elements of modern urban energy transformation, combining distributed energy resources (DER) with smart building systems. The 415 kWdc solar installation paired with cogeneration microturbines creates a robust microgrid architecture that enhances grid resilience while reducing operational costs. Based on similar municipal projects, this could generate annual energy savings of $500,000 to $750,000 for the city.

The CO2 ice plant replacement is particularly strategic, as it addresses both environmental compliance and operational efficiency. Traditional ice rinks often use hydrofluorocarbon (HFC) refrigerants with high global warming potential. The transition to CO2-based systems typically reduces refrigerant-related emissions by 99% while improving energy efficiency by 15-20%. For Willdan, this project strengthens their competitive position in the growing municipal sustainability market, estimated at $94 billion through 2028.

This contract represents a significant strategic win for Willdan in the competitive municipal infrastructure market. The comprehensive scope combining energy efficiency, renewable generation and critical infrastructure upgrades positions them well for similar municipal contracts. With cities facing aging infrastructure and sustainability mandates, the addressable market for such integrated solutions is expanding rapidly.

The building automation systems deployment across city facilities is particularly valuable, as it creates recurring revenue opportunities through ongoing monitoring and optimization services. The water meter modernization component also addresses a critical municipal pain point – water loss and billing accuracy. Modern smart meters typically reduce non-revenue water losses by 10-15% while improving billing accuracy by 3-5%. For a company with a market cap of $544.8 million, an $11 million contract represents a material win that could lead to additional municipal references and contract opportunities.

01/07/2025 – 03:00 PM

ANAHEIM, Calif.–(BUSINESS WIRE)–
Willdan Group, Inc. (NASDAQ: WLDN) announced today that the City of South Lake Tahoe in California has awarded Willdan an $11 million energy and infrastructure modernization project. This two-year project combines energy and operational efficiencies for a cost-effective solution that positions the City for future growth and improved sustainability.

“This project reduces our city’s carbon emissions while investing in long-term infrastructure that will benefit our community for years to come,” said Sara Letton, Sustainability Coordinator for the City of South Lake Tahoe. “It brings us closer to the goals in our Climate Action Plan, including 100% municipal renewable energy by 2032 and a 50% reduction in community-wide emissions by 2030.”

The project will provide the City with a cogeneration microturbine, photovoltaic solar panels that produce 415 kWdc, and advanced building automation systems across all City-operated buildings. Willdan will also install right-sized water meters, energy-efficient power transformers, and a new CO₂ ice plant that uses an environmentally friendly refrigerant to produce ice for the community’s ice arena.

About the City of South Lake Tahoe

The City of South Lake Tahoe is a general law city in El Dorado County, CA, that was founded on November 30, 1965. Located 190 miles northeast of San Francisco, CA and 60 miles southwest of Reno, NV in the Sierra Nevada Mountains, South Lake Tahoe boasts one of the most unique settings in the world, at the edge of an alpine lake of great natural beauty and environmental value. The city limits encompass an area of approximately 16 square miles with an average elevation of 6,200 feet above sea level and a population of 22,525.

About Willdan

Willdan is a nationwide provider of professional, technical, and consulting services to utilities, government agencies, and private industry. Willdan’s service offerings span a broad set of complementary disciplines that include electric grid solutions, energy efficiency and sustainability, energy policy planning and advisory, engineering and planning, and municipal financial consulting. For additional information, visit Willdan’s website at www.willdan.com.

Forward-Looking Statements

Statements in this press release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. It is important to note that Willdan’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed from time to time in Willdan’s reports filed with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K filed for the year ended December 29, 2023. Willdan cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Willdan disclaims any obligation to, and does not undertake to, update or revise any forward-looking statements in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250107877539/en/

Al Kaschalk
Vice President
310-922-5643
akaschalk@willdan.com

Source: Willdan Group, Inc.

FAQ

What is the value of Willdan’s (WLDN) new South Lake Tahoe contract?

Willdan (WLDN) has been awarded an $11 million energy and infrastructure modernization project by the City of South Lake Tahoe.

What renewable energy components are included in WLDN’s South Lake Tahoe project?

The project includes a cogeneration microturbine and photovoltaic solar panels that produce 415 kWdc of power.

How long will Willdan’s (WLDN) South Lake Tahoe energy project take to complete?

The energy and infrastructure modernization project is scheduled to be completed over a two-year period.

What are the sustainability goals of WLDN’s South Lake Tahoe project?

The project aims to help the city achieve 100% municipal renewable energy by 2032 and a 50% reduction in community-wide emissions by 2030.

What infrastructure improvements will WLDN implement in South Lake Tahoe?

Willdan will install building automation systems, right-sized water meters, energy-efficient power transformers, and a new CO2 ice plant for the community’s ice arena.