Gloucester has signed a 25-year contract with Needham-based Equity Industrial Turbines to fully power city and school buildings with electricity from two wind turbines, a move expected to save $450,000 a year.

Jim Duggan, Gloucester’s chief administrative officer, said there is no upfront cost to the city, which has agreed to buy all the power produced by the wind turbines (10.8 million kilowatts).

The contract calls for Gloucester to receive a 20 percent discount off the net metering rate set by the Department of Public Utilities on the first 9 million kilowatts. A 75 percent discount will be applied to the next 1.4 million kilowatts produced. The remaining 400,000 kilowatts would come at no cost.

The city is exploring whether its free kilowatts could be sold to National Grid or to another municipal or government entity, Duggan said.

The turbines will be located in an industrial park, away from residential areas. The site is one of the windiest in the state.

Mayor Carolyn Kirk said city officials are pleased with the outcome of the “complex” six-month process.

Savings from the project, expected to total $11 million over the 25-year life of the wind turbines, will go toward building a new elementary school and joint public safety building, Kirk said.

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