Tag Archives: Power Purchase Agreement

Southern Company and Duke backing solar Florida

Are all the fracking utitilies finally seeing the sunlight? By Backing solar power in Florida, are Duke, Southern Company, TECO, and even FPL’s parent NextEra hedging their bets, or finally realizing where the future is?

Reem Nasr, CNBC, 12 June 2015, The sleeping giant of the solar industry: Florida,

Duke Energy Florida told CNBC that it “is a strong supporter of solar energy and we are committed to helping to grow solar in Florida.” Last month it announced an additional 500 megawatts of solar facilities by 2024, among other solar projects.

Meanwhile in May Duke Energy of Charlotte, North Carolina bought 7.5% of Sabal Trail, along with Spectra Energy of Houston and NextEra Energy of Juno Beach, Florida.

Southern Co., which owns Florida’s Gulf Power, said the following:
Continue reading →

Georgia Power starts selling rooftop solar tomorrow

For most of June, Georgia Power has had two ads rotating on the five LED billboards in Valdosta, saying

Giving you the power to go solar —Georgia Power

When? Tomorrow, July 1st, as Southern Company CEO Tom Fanning said at the SO Stockholder meeting 27 May 2015. Why then? Because that’s when HB 57, aka the Solar Power Free-Market Financing Act of 2015, goes into effect. As Tom Fanning has made his mantra since that meeting:

“If somebody wants to buy distributed generation, I want to sell it to ’em,”

Herman K. Trabish, Utility Dive, 11 June 2015 Inside Georgia Power’s move into the residential solar market: The utility says it will offer solar through an unregulated business, but installers fear possible anticompetitive impacts, Continue reading →

Solar financing bill HB 57

You won’t have to mortgage the farm to install solar power if this bill passes, because you’ll be able to get reasonable financing.

Update 2015-02-07: HB 57 was favorably reported out of the House Energy, Utilities & Telecommunications Committee 28 January 2015, first time such a bill has ever cleared that hurdle.

The actual solar leasing bill in the Georgia House as of 14 January 2015 is HB 57 “…to provide for financing of solar technology by retail electric customers for the generation of electric energy to be used on and by property owned or occupied by such customers or to be fed back to the electric service provider”, aka the “Solar Power Free-Market Financing Act of 2015.” It includes the same old generation limits from the 1973 Territorial Electric Service Act (10 Megawatts per individual and 100 MW per company), but it blows a huge hole in the prohibition on power purchase agreements (PPAs).

Georgia Power and the Electric Membership Corporations have reportedly already agreed on this bill. If so, it should sail through the legislature. Still, it won’t hurt to call your Georgia House member and ask them to vote for it, and maybe become a co-sponsor.

Here’s PDF of the bill, and here’s the key provision: Continue reading →

Georgia Power claims credit for solar leasing bill

That antique 1973 law may finally change to greatly facilitate solar financing through power purchase agreements (PPAs), now that Georgia Power has finally realized the good PR it’s getting for its own solar power deployments.

Walter C. Jones, Jacksonville.com, 13 January 2015, Solar access for residences, churches, small businesses could become easier under agreement,

ATLANTA | Homeowners, churches and small businesses would soon have access to the financing available in two-dozen states for the installation of solar panels with little upfront costs based on an agreement announced Tuesday during a legislative hearing.

Coming up with $18,000 or more in cash to install photovoltaic panels on the average home is difficult for most homeowners. But if the agreement becomes law, they could lease their roof to companies that pay them back with free electricity, selling the rest to the utilities.

Or cities or counties. Valdosta or Lowndes County, for instance, might save hundreds of thousands of dollars a year on utility bills if they could finance solar power through PPAs.

Georgia has the fastest-growing solar Continue reading →

Solar is now competitive with … natural gas –Crossborder Energy study

Colorado, California, North Carolina: when will Georgia catch up in solar power? What will it take to get the Georgia legislature to realize all Georgians will benefit economically from much more solar power than GA PSC in July required Georgia Power to buy? And why should we permit a methane gas pipeline to gash through Georgia to profit executives in Houston and Juno Beach, Florida when we could be deploying solar everywhere in Georgia for local jobs, profit, lower electric bills, and clean air and water?

Here’s the study that showed solar benefits outweigh costs in North Carolina, The Benefits and Costs of Solar Generation for Electric Ratepayers in North Carolina, by R. Thomas Beach and Patrick G. McGuire for Crossborder Energy, 18 October 2013.

Wholesale solar PPA prices provide perhaps the most dramatic evidence of the continued decline in solar PV costs. Solar PPA prices have fallen dramatically over the past several years, to the point that, in some regions of the U.S., solar is now competitive with other generation resources, including wind and natural gas. Xcel Energy in Colorado recently announced that it is proposing to add 170 MW of utility-scale solar to its system, with its CEO stating “[f]or the first time ever, we are adding cost competitive utility scale solar to the system.”³³ The California electric utilities make public each year the average PPA prices for renewable contracts approved by the CPUC in the prior year. Figure 3 shows the trend in the prices for their solar PV PPAs; CPUC contract approval can occur up to a year or more after bids are received, so the figure is indicative of prices through roughly 2011.³⁴ 2012 solicitations for solar PPAs in California in the 3 MW to 20 MW size range through the Renewable Auction Mechanism (RAM) have yielded market-clearing prices in the 8 to 9 cents per kWh range.³

The Lawrence Berkeley National Lab (LBNL) conducts and publishes regular national surveys of the installed costs of solar PV; these surveys include Continue reading →

Industrial Authority working for solar in south Georgia @ VLCIA 2012-12-18

The Industrial Authority is working to find locations for some of the 210 MW Georgia Power got the PSC to shift from biomass to solar back in September. That’s a good next step.

Jason Schaefer wrote for the VDT 23 Dec 2012, Solar power push has Authority working to establish connections,

Since the Georgia Public Service Commission (PSC) approved Georgia Power Company’s plan Nov. 20 to add 210 megawatts of solar power to its electrical grid, the Valdosta-Lowndes County Industrial Authority has been devising strategies to draw solar energy producers to South Georgia.

Georgia Power will issue a Request for Proposals (RFP) from solar energy collection and production companies in early 2013, according to the PSC, and the company will contract with the lowest bidders to purchase their energy and place it on the Georgia Power electrical grid for public consumption.

Georgia Power plans to add 90 megawatts to its grid from distributed generation (small companies producing between 100 kilowatts and 1 megawatt), and 120 megawatts of large utility-scale projects producing up to 20 megawatts each. The company plans to price the solar energy at $0.13 per kWh for distributed generation and up to $0.12 per kWh for utility-scale projects, according to the PSC.

This government-approved commercial push for solar energy could be a boon to sunny South Georgia as well as the greater Valdosta area specifically, and the Authority is prepared to accommodate the solar energy producers they expect.

“I think there’s a very good possibility of solar energy coming to South Georgia,” Executive Director Andrea Schruijer said. “Possibly in the near future.”

There’s more in the VDT story. It’s pretty much what Col. Ricketts also told me after the VLCIA meeting Tuesday a week ago. He asked me if I knew what “distributed” meant. I pointed out Georgia Power’s version of distributed was actually not very distributed, compared to Continue reading →

VLCIA to sue Sterling Power about biomass site?

I’d heard a rumor that some sort of lawsuit about the biomass site was the subject of some of the Industrial Authority executive sessions for real estate discussions. VLCIA has finally said in public what their position is.

Jason Schaefer wrote for the VDT today, Authority weighs suit for biomass land: Slow progress leads to default, contract argument

The Valdosta-Lowndes County Industrial Authority plans to send a petition to Lowndes County Superior Court to sue Wiregrass Power, LLC, for a clear title on the land purchased for the development of a biomass energy plant.

The Authority believes Wiregrass defaulted on a lease agreement to build the plant, placing ownership of the 22.22-acre tract back in their hands, but Wiregrass denies the allegations. This denial casts “a cloud” of suspicion on the Authority that may prevent it from re-marketing the property, according to the petition, leading to the suit.

Sounds like they’re publicizing their intent to try to scare Sterling off without having to sue. I’m for that.

This may explain a flurry of special called meetings they had in May and June 2011.

Continue reading →

Enabling a commodity market in solar power: Dr. Smith’s electric meters

Dr. Smith’s electric meters enable a commodity market in solar power, with billing from generators to customers. And EMCs can take 1% or so for carrying the power, plus they can get advertising rights that could be worth more than selling electricity! If SB 459 or something like it gets out of committee and into law.

Dr. Sidney Smith explained how the electric meter he’s developed uses cellular technology to facilitate direct billing from solar generator and customer. Gretchen asked him what if they generate more than they use. Dr. Smith said they wouldn’t. I asked what if they added more panels. He said they could, but there are trees in the back.

Here’s Part 1 of 5:

Enabling a commodity market in solar power: Dr. Smith’s electric meters Part 1 of 5:
South Eastern Pathology Associates,
Selling Power, Lower Rates for Customers LLC (LRCLLC),
Richmond Hill, Bryan County, Georgia, 17 February 2012.
Videos by Gretchen Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

He forgot about the parking lot out front where the panels he just connected are located: no shading there, and plenty of room for more solar panels.

Dr. Smith said the best places for solar are where there is no shade and near power poles. Gretchen asked how do you finance? Dr. Smith answered, Continue reading →

SB 401 revived in SB 459: lets you generate and sell solar power

SB 401 got tabled in the Natural Resources Committee. 46 other states already let people generate solar power and sell it to a third party.

Yet in only four states — Georgia, Florida, North Carolina and Kentucky Mdash; are third party power purchase agreements disallowed, according to the U.S. Department of Energy.

But Georgia Power convinced that committee that it would raise rates for everybody else. Which is pretty rich coming from the same gapower that is already charging customers Construction Work in Progress for its nuke boondoggle. So SB 401 sponsor Sen. Buddy Carter found another way.

Mary Landers wrote for the Savannah Morning News Friday, Solar bill jolted back to life:

To revive his bill, Carter tacked it onto to one already sent to the Regulated Industries Committee — SB 459, which would allow consumers to opt-out of smart meters like the ones Georgia Power is currently installing in Savannah. The committee held a hearing on the bill Thursday, ultimately tabling it, and saying they wanted more information about how power purchase agreements work in other states.
Carter was elated.
“It’s out there now and people are aware of it,” he said. It’s getting media attention. I feel good about it.”

Help him feel even better about it. Contact the committee chair and tell him we want solar cogeneration:

Senator William Ligon
404-656-0045
william.ligon@senate.ga.gov

Oh, regarding the meter opt-out in the main body of the bill, why let gapower charge people for that? You can mention to Sen. Ligon that people should be able to opt out for free.

-jsq

PS: Owed to Bob Ingram.

Projects that can actually be built —Jeff Glavan of MP2 Capital

Representing a San Francisco venture capital firm, MP2 Capital, Jeff Glavan said he’s looking for medium to large scale projects that can actually get built, with partners in each geographic market, since development is very local.

MP2 also does projects with municipalities that can’t take tax credits because they are tax exempt. MP2 funds instead.

It’s not just all about large systems…. There’s a market for 1 to 5 megawatt systems.

The three things they look at are credit, commercial terms, and economic terms. Commercial terms are what hold up most projects. MP2 likes to be involved in negotiating a Power Purchase Agreement (PPA) to avoid terms like host may need to repair roof which could involve removing the solar system for some undefined amount of time.

MP2 is actively looking for solar partners.