Renewable Standard Offer
New for 2015
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 2015. 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.
Capacity Update 2/1/2015: TVA has received application requests in excess of the available and wait list capacity for the RSO offering and the Standard SSI offering. Capacity is still available in the SSI LPC carve-out and the SSI 50kW to 200kW carve-out.
2015 Update: Solar Solutions Initiative Extended
TVA is continuing its commitment to low cost solar energy, expanding the Solar Solutions Initiative to 20 MW in 2015. This includes 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.
What Is the Renewable Standard Offer?
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.
TVA’s Renewable Standard Offer Will:
- Help support the growth of the renewable generation industry in the TVA power service territory
- Promote TVA’s economic development efforts
- Contribute to the development and use of alternative sources of energy in the TVA power service area and across the country.
What's the Benefit for Developers?
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.
What Projects Are Eligible?
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.
- Be located in the TVA power service territory.
- Be greater than 50 kW and less than or equal to 20 megawatts
- Have been built after October 1, 2010
- Be solar photovoltaics, wind, combustion and gasification of qualified biomass, biomass co-firing (50% minimum of qualified liquid and gaseous biomass), and methane recovery and utilization
- Establish an interconnection with a distributor’s or TVA’s electric system
What does it take to apply?
A developer’s application for the Renewable Standard Offer program must include the following details regarding their project:
- Gross nameplate capacity (the maximum rated output of a generation source, commonly indicated by a nameplate attached by the manufacturer to the equipment)
- Expected capacity factor (the ratio of the actual output of a power plant over a period of time to its output if it had operated at full nameplate capacity the entire time)
- Expected initial delivery date
- Renewable fuel(s)
- Proposed delivery point
- Evidence that the applicant has either title or rights of access to the proposed project site.
- A non-refundable application fee of $5,000 + $1.00/kW of the project’s gross nameplate capacity.
- A copy of the completed Interconnection Application as submitted to the Distributor or TVA
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.
Learn more about application