Tres Amigas LLC and Foundation Fuel LLC have entered into an agreement to jointly develop technical and operational strategies to firm renewable energy sources by deploying gas-fired power as a backup.
Coordinated via market-based dispatch through the Tres Amigas SuperStation, the goal is to create firm and reliable renewable power from intermittent wind and solar resources. The new strategy will allow customers to purchase a reliable portfolio of power with the largest possible component of wind and solar power.
Under the terms of the agreement, Foundation Fuel will construct natural-gas-fired turbine generation facilities, along with the pipeline, gas storage and electric transmission facilities needed to connect the generation to natural-gas supplies and to deliver electric energy directly to the Tres Amigas SuperStation.
Power will then be dispatched via the SuperStation, which will electrically interconnect all three U.S. power grids. Tres Amigas and Foundation Fuel will coordinate the construction and integration of these new resources with the power-dispatch capabilities necessary to provide firm and spot-market opportunities for renewable energy in all three of the U.S. interconnected electrical grids.
Further, the combined assets of both companies' projects are expected to provide important ancillary and balancing services to the transmission lines carrying power and energy to a variety of different markets across the country.
Tres Amigas and Foundation Fuel will also develop pro-forma contracts that will streamline power transactions for renewable energy providers, power firming entities and customers. The goal is to enable utilities and other purchasers of renewable power to contract directly from one source on a long-term basis for the cleanest available firm power, while also improving the economics of such transactions.
SOURCE: Tres Amigas LLC