Key Topic

Renewable Standard Offer

The Tennessee Valley Authority is encouraging small to mid-size renewable energy projects in the TVA service area with its Renewable Standard Offer.

Background

TVA is working to encourage greater use of renewable energy, such as solar, wind and biomass projects, in its service territory. Renewable power purchase plans with a set price, or "standard offer," are used by some states and utilities to promote renewable energy markets. This initiative is designed to accommodate customer renewable energy projects that are too large for the Generation Partners pilot program (for small generators).

Key points

• Developers of mid-size renewable energy projects in the TVA service area can now participate in TVA's Renewable Standard Offer, which offers set prices based on the season and time of day. Long-term contracts of up to 20 years will be offered that could help developers finance their renewable energy projects more easily.
• TVA will accept proposals for renewable projects that are capable of producing between 200 kilowatts and 20 megawatts of electricity. This new initiative will be limited to 100 megawatts, with no single renewable technology exceeding more than 50 percent of the 100-megawatt total.
• TVA has simplified the application process and added a standardized power purchase contract to make participation in the program easier.
• The Renewable Standard Offer will help encourage the growth of the renewable generation industry in the region, promote TVA's economic development goals by helping create new clean-energy jobs, and support TVA's vision for cleaner air and greater energy efficiency.

Other information

• Prices paid to customers for under the Renewable Standard Offer could differ based on factors such as availability during peak electricity demand times. For example, projects that operate more during the day would receive higher average prices because of their potential to provide power during times of greatest need.
• Setting prices for a 20-year contract will provide more certainty to developers and help TVA avoid rising prices for purchased power over time.
• All of the technologies below may participate, but no single technology may exceed 50 percent of the total 100-megawatt limit
  • Biomass direct combustion (excluding methane recovery) and/or co-firing (greater than 50 percent biomass)
  • Biomass gasification (excluding methane recovery)
  • Methane Recovery
  • Wind
  • Solar

October 2010