TVA is demonstrating its continued commitment to renewable and clean energy by issuing an additional 100 MW of available capacity in the Renewable Standard Offer (RSO) program in 2014. In addition to the 100 MW being offered under the RSO, 20 MW will also be available under the Solar Solutions Initiative with updated prices for 2015. TVA will start accepting applications for new projects starting on January 2, 2015.
TVA is continuing its commitment to low cost solar energy, expanding the Solar Solutions Initiative to 20 MW in 2015. This will include three separate categories: 12 MW for traditional SSI projects, 4 MW for projects >50 kW up to 200 kW, and 4 MW for LPC participation. The Solar Solutions Initiative is a pilot incentive for solar projects in the Valley (>50 kW up to 1 MW DC) that use local NABCEP-certified installers in the Valley region. Read more about SSI.
Developers of new small to mid-size renewable energy projects in the TVA power service area can participate in TVA’s Renewable Standard Offer program. This program offers pre-set prices and terms and conditions for power generated by selected, commercially available renewable energy technologies.
Renewable power purchase plans with a set price, or “standard offer,” are used by a number of states and utilities across the nation to promote renewable energy markets. TVA’s Renewable Standard Offer program will help support TVA’s vision and long-term strategy to emphasize cleaner air and greater energy efficiency.
A long-term contract with a known price structure and escalation rate can help the developers of selected renewable energy projects provide power to TVA.
Seasonal and time-of-day prices for hourly delivered energy output are set as of the date of execution of the contract agreement, reflecting varying demand for power at different seasons and times of the day.
A typical annual average price could be 3.6 cents per kWh, with pricing varying between 5.1 cents per kWh on hot, high-demand afternoons in July and August, and 2.9 cents in early morning hours in the fall and spring.
While TVA’s Green Power Providers program is limited to renewable energy projects of less than or equal to 50 kilowatts (kW), the Renewable Standard Offer program is designed for developers of larger projects.
A developer’s application for the Renewable Standard Offer program must include the following details regarding their project:
Depending on the size of the project, a project developer may be asked to provide information on the design of the system and/or the interconnection so TVA can evaluate potential impacts and the expected initial delivery date.
Applicants are responsible for interconnection costs, costs related to possible environmental review of the project, payment of performance assurance securities, and nonrefundable application fees.
The investment required is significant. Performance Assurance costs for a 20 year, 1 MW project can total up to $125,000 in collateral.