The Tennessee Valley Authority (TVA) has launched the Renewable Standard Offer program that is designed to encourage more renewable development within the region by allowing developers to enter into long-term price contracts with TVA.
These new renewable projects may be capable of producing between 201 kW and 20 MW of electricity. TVA will pay a set price for renewable power based on the time of day the electricity is available to the TVA grid. The new initiative will help TVA meet peak power demand as well as increase renewable generation.
‘This plan strikes a balance between supporting renewable energy markets, helping TVA reach its renewable energy generation targets and keeping electricity costs affordable,’ says John Trawick, senior vice president for commercial operations and pricing at TVA. ‘TVA's renewable standard offer makes it easier for midsized renewable generation facilities to contribute to TVA's electricity-supply needs and receive a fair and stable price for the power they provide.’
Contracts of up to 20 years for wind, solar and biomass will be eligible. TVA's Renewable Standard Offer initially will be limited to a total of 100 MW from all participants, with no single renewable technology representing more than 50 MW of the total.
SOURCE: Tennessee Valley Authority