NORTH MISSISSIPPI — The Tennessee Valley Authority has added to its renewable power portfolio with the announcement of a new TVA initiative for mid-size renewable generators.
The TVA Renewable Standard Offer will 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 kilowatts and 20 megawatts of electricity. The Renewable Standard Offer Program was designed to accommodate projects that are too large for TVA’s Generation Partners program, which was developed for residential and small commercial customers that generate 200 kilowatts or less.
A number of states and utility companies purchase renewable power from developers, or excess power produced by customer renewable power systems, using a set price, or “standard offer” to encourage the growth of solar, wind and other forms of electricity that emit no pollution or greenhouse gases.
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.
Contracts of up to 20 years will help TVA avoid rising purchased power prices and keep consumer prices down, the utility reports. The long-term contracts also will make financing the projects easier for participating developers. Biomass, solar and wind projects will be eligible.
TVA’s Renewable Standard Offer initially will be limited to a total of 100 megawatts from all participants, with no single renewable technology representing more than 50 megawatts of the total.