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TVA Signs First Renewable Standard Offer Contract

KNOXVILLE, Tenn. Jan. 26, 2011

Camden, Tenn.

John Trawick

September 2011 Camden

TVA added the Renewable Standard Offer in October as a new initiative for mid-size generators of biomass direct-combustion, co-firing or gasification; methane recovery, wind or solar that produce 201 kilowatts to 20 megawatts of electricity. The initiative is designed to accommodate projects too large for TVA’s Generation Partners program, which was developed for residential and small commercial customers that generate 200 kilowatts or less.

The Renewable Standard Offer allows developers in the region to enter into contracts for up to 20 years. The long-term contracts will help TVA avoid rising purchased power prices and keep consumer prices down, while also making financing the projects easier for developers.

TVA pays 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 that emits no pollution or greenhouse gases. The 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.

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SOURCE Tennessee Valley Authority

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