California utilities ask for more renewables
SAN DIEGO, California, US, 2004-07-21 (Refocus Weekly)
Two major utilities in California have issued requests for green power by 2010.
San Diego Gas & Electric has issued a request for offers from eligible
renewable energy resources as part of its goal to achieve an overall resource
portfolio of 20% from renewables by 2010. Resources must meet the state
Renewable Portfolio Standard eligibility set by the California Energy Commission
and must be at least 1 MW if the resource is within SDG&E’s service area,
or 5 MW if the resource is outside the region.
Solar PV and wind resources must be sited within San Diego and start deliveries
in 2005, 2006, 2007 or 2008. Geothermal resources must be sited within Imperial
Valley and start in 2010, but SDG&E must first obtain approval and construct
a new 500 kV line into the San Diego area.
Peaking resources must be available in July, August, September and October,
during weekdays from 11 am to 7pm, and from January to June and November to
December from 1 pm until 9 pm. Power purchase agreements will be for ten to 20
years.
“Respondents submitting offers that include the construction of new generation
facilities must provide adequate detail to allow SDG&E to determine whether
the proposed capacity will economically and reliably meet SDG&E’s resource
requirements,” the documents note. “Respondents anticipating the need for
subsides, grants, Supplemental Energy Payments, Production Tax Credits or any
other third party monetary awards shall detail finances associated with monetary
awards and discuss how such funding or lack of funding shall impact the offer or
any PPA.”
Respondents who would rely on PTC’s if such credits were to be made available
must submit two price offers; one if PTC credit is available and one if the
credit is not available.
In San Francisco, Pacific Gas & Electric has issued a similar request,
marking the utility’s first renewable energy solicitation under the state’s
Renewable Portfolio Standard program.
PG&E currently supplies 13% of its customer load from resources that qualify
under the RPS Program and another 19% from hydroelectric facilities, for almost
one-third of load from renewables, “one of the highest volumes of any utility
in the United States,” it claims.
It wants to obtain 20% of its capacity from RPS-eligible facilities by 2017.
PG&E wants to sign contracts for green power by the end of this year, and
“looks forward to receiving a broad range of competitive products from
prospective renewable energy suppliers” involved in solar, wind, small hydro,
geothermal, biomass, landfill gas and various ocean technologies. Its commitment
to renewables was described in the company’s integrated resource plan, filed
earlier this month the California Public Utilities Commission.
California’s RPS Program requires each utility to increase its procurement of
eligible renewable generating resources by 1% of load per year, so PG&E will
issue additional renewable solicitations in future years.
The RPS Program was passed by the state legislature and is managed by California’s
Public Utilities Commission and Energy Commission.
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