Released April 29, 2022 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The rush to renewables remains alive and well: This spring, North American electric utilities have issued requests for proposals (RFPs) for thousands of megawatts of renewable electric generation and energy storage, typically to fulfill decarbonizing integrated resource plans (IRPs) filed with their state utility regulators.
On April 20, the government of Quebec and provincial utility Hydro-Québec (Montreal, Quebec) issued two RFPs for renewable energy totaling 2,300 megawatts (MW), the largest solicitation in the utility's history. This RFP follows the issuance of two RFPs seeking up to 780 MW of renewable energy, as well as the recent selection of three wind projects, totaling 1,200 MW, to be jointly developed by Boralex Incorporated (Kingsey Falls, Québec) and Énergir (Montreal), a subsidiary of Noverco Incorporated (Montreal) and Hydro-Québec.
Puerto Rico's utility regulator, the Puerto Rican Energy Bureau, acting on behalf of the Puerto Rico Electric Power Authority (PREPA) in late April, issued a draft RFP for at least 500 MW of renewable generation capacity and 250 MW of energy storage for the U.S. territory.
"PREPA seeks energy resources that can achieve commercial operation in no more than 24 months from the date on which a selected proponent executes a contract, with preference given to those proposals that can achieve commercial operation within a shorter timeframe," the RFP said.
In the U.S., Tucson Electric Power (TEP) (Tucson, Arizona), a unit of Fortis Incorporated (NYSE:FTS) (St. Johns, Newfoundland), on April 19 issued an all-source RFP for up to 250 MW of renewable and energy-efficient resources. This could include new wind and solar generating systems, as well as customer programs such as demand-response programs that reduce usage during periods of high energy demand.
The Tucson utility said it also was seeking bids on up to 300 MW of "firm capacity" resources that can be called on at any time, including energy storage systems designed to provide at least four hours of continuous energy every day during the summer for TEP to dispatch as needed. This category of resources also could include demand-response programs that provide incentives to customers who curtail energy usage at specific times of the day and year when usage is typically highest.
TEP last year added 449 MW of new wind and solar resources, boosting renewable energy to a 30% share of its electric fuel mix. The utility's 2020 IRP calls for TEP to reduce its carbon emissions by 80% and to supply more than 70% of its energy to retail customers from renewable resources by 2035.
The utility, which serves more than 438,000 customers in Southern Arizona, said it wants to receive bids by July 1. TEP said it expects to announce winning bidders near the end of 2022. Selected projects are required to be operating by May 1, 2025, but the utility is willing to take projects that can begin operating as soon as May 1, 2024. Projects with combined technologies are eligible for consideration.
Also in April, Pacific Gas and Electric Company (PG&E) (San Francisco, California), a unit of PG&E Corporation (NYSE:PCG) (San Francisco) released an all-source RFP seeking up to 176 MW of community solar generation to support its opt-in Solar Choice program, a voluntary program where customers pay extra to receive cleaner electricity.
The largest capacity for any solar generation project PG&E accepts under this RFP is 20 MW. Proposals are due May 6, and the utility is expected to select winning bidders by yearend 2022. Projects must be operating by yearend 2024. The projects will be located across PG&E's service territory in Northern and Central California.
"These new projects will directly contribute to the continued growth of PG&E's renewable energy customer programs--which have experienced steadily increasing customer enrollment over the past few years--while at the same time helping to create prosperity for California and supporting the planet," said Fong Wan, PG&E's senior vice president for energy policy procurement.
Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina), which has been aggressively greening its electricity supply in recent years, in late March said it planned to issue a system-wide RFP for at least 700 MW of solar generation to be sited in North Carolina and South Carolina.
That solicitation is in addition to the RFP it issued earlier for about 600 MW of solar generation. Last year, North Carolina enacted a law, House Bill 951, requiring electric utilities to achieve a 70% reduction in carbon dioxide (CO2) emissions by 2030, when compared with a 2005 baseline. By 2050, utilities were required to become carbon neutral.
That law also required that 55% of new solar generation supplied in the state would be required to come from solar plants built by utilities. The remaining 45% can come from third parties through a power-purchase agreement (PPA).
In its annual ESG (environmental, social and governance) report, released April 26, Duke said its renewable energy capacity rose 20% in 2021, or about 1,800 MW. Its CO2 emissions in 2021 fell 44% compared to 2005. The utility holding company, whose operating units provide electricity to about 8.2 million customers in six states, wants to own, operate or contract for 16,000 MW of renewable energy by 2025. During 2021, the company went from almost 8,800 MW of wind and solar at the end of 2020 to just more than 10,500 MW by the end of 2021.
For more information on Duke's renewable plans, see April 27, 2022, article - Duke Energy Heads to Texas, Florida for Renewable Buildouts.
"ESG is essential to who we are," said Katherine Neebe, Duke Energy's chief sustainability officer and president of Duke Energy Foundation. "Our ESG strategy is focused on how we create value, while at the same time mitigate the risks associated with our business. As we lead the most ambitious clean energy transition in our industry, we will continue to track and report our progress."
Another utility issuing an RFP for renewable generation and energy storage this spring is NV Energy (Las Vegas, Nevada), a unit of Berkshire Hathaway Incorporated (NYSE:BRK.A) (Omaha, Nebraska). On April 12, the utility issued an RFP for solar, hydroelectric, geothermal, wind, biomass and biogas technology projects that are at least 20 MW in size and are compliant with Nevada's existing renewable portfolio standards. The utility also said it will consider proposals that include energy storage systems integrated with renewable energy resources. All proposed projects must allow be commercially operational by December 31, 2025.
In its preferred resource plan, contained in a filing with Nevada utility regulators, NV Energy said it would seek to add 25 MW of Nevada-based geothermal energy and to build a 220-MW, grid-tied battery energy storage system on the site of the former coal-fired Reid Gardner Generating Station in Clark County, Nevada, in order to more efficiently manage the solar resources NV Energy is adding as part of its ongoing decarbonization efforts.
"The projects outlined in our filing support more geothermal energy development in Nevada and increase energy storage to more efficiently utilize Nevada's strong solar resource, all in an effort to decarbonize our energy future and ensure a reliable energy supply to serve our customers," said Doug Cannon, the chief executive officer of NV Energy. "These projects reinforce our commitment to Nevada's clean energy economy while supporting our delivery of reliable service at stable and affordable rates."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
On April 20, the government of Quebec and provincial utility Hydro-Québec (Montreal, Quebec) issued two RFPs for renewable energy totaling 2,300 megawatts (MW), the largest solicitation in the utility's history. This RFP follows the issuance of two RFPs seeking up to 780 MW of renewable energy, as well as the recent selection of three wind projects, totaling 1,200 MW, to be jointly developed by Boralex Incorporated (Kingsey Falls, Québec) and Énergir (Montreal), a subsidiary of Noverco Incorporated (Montreal) and Hydro-Québec.
Puerto Rico's utility regulator, the Puerto Rican Energy Bureau, acting on behalf of the Puerto Rico Electric Power Authority (PREPA) in late April, issued a draft RFP for at least 500 MW of renewable generation capacity and 250 MW of energy storage for the U.S. territory.
"PREPA seeks energy resources that can achieve commercial operation in no more than 24 months from the date on which a selected proponent executes a contract, with preference given to those proposals that can achieve commercial operation within a shorter timeframe," the RFP said.
In the U.S., Tucson Electric Power (TEP) (Tucson, Arizona), a unit of Fortis Incorporated (NYSE:FTS) (St. Johns, Newfoundland), on April 19 issued an all-source RFP for up to 250 MW of renewable and energy-efficient resources. This could include new wind and solar generating systems, as well as customer programs such as demand-response programs that reduce usage during periods of high energy demand.
The Tucson utility said it also was seeking bids on up to 300 MW of "firm capacity" resources that can be called on at any time, including energy storage systems designed to provide at least four hours of continuous energy every day during the summer for TEP to dispatch as needed. This category of resources also could include demand-response programs that provide incentives to customers who curtail energy usage at specific times of the day and year when usage is typically highest.
TEP last year added 449 MW of new wind and solar resources, boosting renewable energy to a 30% share of its electric fuel mix. The utility's 2020 IRP calls for TEP to reduce its carbon emissions by 80% and to supply more than 70% of its energy to retail customers from renewable resources by 2035.
The utility, which serves more than 438,000 customers in Southern Arizona, said it wants to receive bids by July 1. TEP said it expects to announce winning bidders near the end of 2022. Selected projects are required to be operating by May 1, 2025, but the utility is willing to take projects that can begin operating as soon as May 1, 2024. Projects with combined technologies are eligible for consideration.
Also in April, Pacific Gas and Electric Company (PG&E) (San Francisco, California), a unit of PG&E Corporation (NYSE:PCG) (San Francisco) released an all-source RFP seeking up to 176 MW of community solar generation to support its opt-in Solar Choice program, a voluntary program where customers pay extra to receive cleaner electricity.
The largest capacity for any solar generation project PG&E accepts under this RFP is 20 MW. Proposals are due May 6, and the utility is expected to select winning bidders by yearend 2022. Projects must be operating by yearend 2024. The projects will be located across PG&E's service territory in Northern and Central California.
"These new projects will directly contribute to the continued growth of PG&E's renewable energy customer programs--which have experienced steadily increasing customer enrollment over the past few years--while at the same time helping to create prosperity for California and supporting the planet," said Fong Wan, PG&E's senior vice president for energy policy procurement.
Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina), which has been aggressively greening its electricity supply in recent years, in late March said it planned to issue a system-wide RFP for at least 700 MW of solar generation to be sited in North Carolina and South Carolina.
That solicitation is in addition to the RFP it issued earlier for about 600 MW of solar generation. Last year, North Carolina enacted a law, House Bill 951, requiring electric utilities to achieve a 70% reduction in carbon dioxide (CO2) emissions by 2030, when compared with a 2005 baseline. By 2050, utilities were required to become carbon neutral.
That law also required that 55% of new solar generation supplied in the state would be required to come from solar plants built by utilities. The remaining 45% can come from third parties through a power-purchase agreement (PPA).
In its annual ESG (environmental, social and governance) report, released April 26, Duke said its renewable energy capacity rose 20% in 2021, or about 1,800 MW. Its CO2 emissions in 2021 fell 44% compared to 2005. The utility holding company, whose operating units provide electricity to about 8.2 million customers in six states, wants to own, operate or contract for 16,000 MW of renewable energy by 2025. During 2021, the company went from almost 8,800 MW of wind and solar at the end of 2020 to just more than 10,500 MW by the end of 2021.
For more information on Duke's renewable plans, see April 27, 2022, article - Duke Energy Heads to Texas, Florida for Renewable Buildouts.
"ESG is essential to who we are," said Katherine Neebe, Duke Energy's chief sustainability officer and president of Duke Energy Foundation. "Our ESG strategy is focused on how we create value, while at the same time mitigate the risks associated with our business. As we lead the most ambitious clean energy transition in our industry, we will continue to track and report our progress."
Another utility issuing an RFP for renewable generation and energy storage this spring is NV Energy (Las Vegas, Nevada), a unit of Berkshire Hathaway Incorporated (NYSE:BRK.A) (Omaha, Nebraska). On April 12, the utility issued an RFP for solar, hydroelectric, geothermal, wind, biomass and biogas technology projects that are at least 20 MW in size and are compliant with Nevada's existing renewable portfolio standards. The utility also said it will consider proposals that include energy storage systems integrated with renewable energy resources. All proposed projects must allow be commercially operational by December 31, 2025.
In its preferred resource plan, contained in a filing with Nevada utility regulators, NV Energy said it would seek to add 25 MW of Nevada-based geothermal energy and to build a 220-MW, grid-tied battery energy storage system on the site of the former coal-fired Reid Gardner Generating Station in Clark County, Nevada, in order to more efficiently manage the solar resources NV Energy is adding as part of its ongoing decarbonization efforts.
"The projects outlined in our filing support more geothermal energy development in Nevada and increase energy storage to more efficiently utilize Nevada's strong solar resource, all in an effort to decarbonize our energy future and ensure a reliable energy supply to serve our customers," said Doug Cannon, the chief executive officer of NV Energy. "These projects reinforce our commitment to Nevada's clean energy economy while supporting our delivery of reliable service at stable and affordable rates."
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
