October 21, 2013
DEEP Announces RFP for Renewable Power Produced By Biomass, Landfill Gas, and Run-of-River Hydropower
Competition open to projects in state and throughout New England
Connecticut’s Department of Energy and Environmental Protection (DEEP) today issued a Request for Proposals (RFP) for electric power produced by biomass, landfill gas, and run-of-river hydropower facilities that meet Connecticut’s Class I renewable requirements.
“The expedited timeline for this RFP
maximizes the opportunity for bidders to qualify for federal Production Tax Credits, which will help drive down the cost of power these projects produce, ” said DEEP Commissioner Daniel C. Esty. “This is consistent with Governor Malloy’s vision of bringing cheaper, cleaner, and more reliable power to our residents and businesses.” The tax credits, designed to encourage the development of renewable energy projects, expire Dec. 31.
Under the RFP, DEEP is seeking proposals for energy and renewable energy credits from both new and existing facilities, located both in-state and throughout the Northeast. The Department will evaluate proposals based on a range of criteria focused heavily on pricing, but also considering reliability and environmental and economic development benefits for the state.
Responses to the RFP are due back to DEEP by Nov. 18.
Projects selected under the RFP will be eligible to enter into power purchase agreements for up to 10 years with the state’s two major electric distribution companies – Connecticut Light & Power (CL&P) and United Illuminating (UI).
DEEP has the authority to select proposals under this RFP to meet up to four percent of the state’s total electricity demand in accordance with Section 8 of Public Act 13-303, “An Act Concerning Connecticut’s Clean Energy Goals.”
This Act restructured Connecticut’s Renewable Portfolio Standard (RPS) and recommitted Connecticut to obtaining 20% of its electric power from clean energy sources by the year 2020. Power obtained from biomass, landfill gas, and small scale hydro-electric projects selected through this RFP process will help the state stay on track to meet its Class 1 RPS goal.
Other Recent Procurement
Under other provisions of Public Act 13-303, Governor Malloy recently announced the selection of two Class I renewable clean energy projects that have a combined capacity of 270 megawatts (MW) of electricity – which represents about 3.5 percent of the state’s total electricity load.
The two projects – which have entered into long-term power purchase agreements with CL&P and UI – are a solar installation slated for land in Sprague and Lisbon, Conn., and a wind energy farm in Maine. The cost of power from the two projects – will average under eight cents per kilowatt hour (k/Wh), a price close to matching the cost of power generated from conventional fossil fuel plants and some of the lowest costs ever obtained for solar and wind power in the region.