Maine energy regulators will soon act on proposals for community-based renewable energy projects, as legal authority for a community energy pilot program winds down.
In 2009, the Maine Legislature enacted An Act To Establish the
Community-based Renewable Energy Pilot Program, P.L. 2009, ch.
329. The Act established a pilot program to provide incentives for the development of community-based renewable projects. To qualify, projects must be “locally owned electricity
generating facilities” (51% or more of the facility must be owned by
“qualifying local owners”) and must not exceed 10 MW. The Maine Public Utilities Commission was charged with administering the program, including certifying qualifying facilities. To a community renewable energy project developer, the program offered the opportunity to win a long-term contract to sell project power to a Maine utility at predictable prices.
A 2015 law amended the community-based renewable energy program. Among other changes, it required the Commission to perform a "viability assessment" of all projects that have been certified under the program but have not yet reached commercial operations. For any projects the Commission determines will not be viable by December 31, 2018, the Act states that the Commission must revoke any contract awarded, though the projects will remain certified. In September 2015, the Commission completed its viability assessment and identified
approximately 21 megawatts of capacity that is available for contract awards.
The 2015 law effectively provides that the Commission's authority to
order utilities to enter into community-based renewable energy projects
expires on December 31, 2015. In light of the 21 megawatts of program capacity identified as available, on September 30, the Commission issued a request for proposals for projects seeking the remaining contract awards.
Proposals were due by November 6, 2015. According to the RFP, the Commission will complete its
evaluation of proposals and accept or reject proposals no later than December 31.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Showing posts with label viability. Show all posts
Showing posts with label viability. Show all posts
Maine PUC considers community energy projects
Thursday, September 17, 2015
The Maine Public Utilities Commission is evaluating the viability of proposed community-based renewable energy projects that remain under development.
Maine has run a community-based renewable energy program since 2009. The program gives qualified wind, solar, and other renewable energy projects long-term contracting opportunities to sell the facility’s output to a Maine transmission and distribution utility at attractive rates.
In 2015, the Maine Legislature adopted P.L. 2015 ch. 232, An Act to Amend the Community-based Renewable Energy Program”. Beyond minor revisions to the law, the act adds strict deadlines for key program milestones: the Public Utilities Commission has until December 31, 2015 to order or allow utilities to enter into long-term contracts under the program, and all projects selected for a contract must become operational and commence generating electricity by December 31, 2018.
Section 5 of the Act also created a new "viability assessment" process designed to make sure the program is as effective as possible. The program size is capped at 50 megawatts statewide; all of this capacity was quickly claimed by certified projects. But not all projects that have been certified are operational; some have yet to be built. Some stakeholders expressed concern over "permit banking" -- developers obtaining and holding onto program capacity, without actively developing it, while other projects would move forward if they could get the capacity.
As a result, the Legislature directed the Commission to review all certified projects that have not yet reached commercial operations, to determine whether the projects are reasonably likely to achieve commercial operations within a 3-year period. If the Commission determines a project will not be viable by December 31, 2018, the Act directs the Commission to revoke any contract awarded, but such projects will remain certified under the program. If the removal of nonviable projects frees up program capacity for contracting, the law directs the Commission to conduct an expedited request for proposals to select community-based renewable energy projects to become program participants and enter into long-term contracts.
The Commission's viability assessment process is now ongoing. A July 13, 2015 procedural order identified six projects as having been either certified or awarded a contract, but not been placed in commercial operation. Project developers were invited to submit information related to the viability assessment by August 7.
The Commission meets on September 22 to deliberate on the viability assessments.
Maine has run a community-based renewable energy program since 2009. The program gives qualified wind, solar, and other renewable energy projects long-term contracting opportunities to sell the facility’s output to a Maine transmission and distribution utility at attractive rates.
In 2015, the Maine Legislature adopted P.L. 2015 ch. 232, An Act to Amend the Community-based Renewable Energy Program”. Beyond minor revisions to the law, the act adds strict deadlines for key program milestones: the Public Utilities Commission has until December 31, 2015 to order or allow utilities to enter into long-term contracts under the program, and all projects selected for a contract must become operational and commence generating electricity by December 31, 2018.
Section 5 of the Act also created a new "viability assessment" process designed to make sure the program is as effective as possible. The program size is capped at 50 megawatts statewide; all of this capacity was quickly claimed by certified projects. But not all projects that have been certified are operational; some have yet to be built. Some stakeholders expressed concern over "permit banking" -- developers obtaining and holding onto program capacity, without actively developing it, while other projects would move forward if they could get the capacity.
As a result, the Legislature directed the Commission to review all certified projects that have not yet reached commercial operations, to determine whether the projects are reasonably likely to achieve commercial operations within a 3-year period. If the Commission determines a project will not be viable by December 31, 2018, the Act directs the Commission to revoke any contract awarded, but such projects will remain certified under the program. If the removal of nonviable projects frees up program capacity for contracting, the law directs the Commission to conduct an expedited request for proposals to select community-based renewable energy projects to become program participants and enter into long-term contracts.
The Commission's viability assessment process is now ongoing. A July 13, 2015 procedural order identified six projects as having been either certified or awarded a contract, but not been placed in commercial operation. Project developers were invited to submit information related to the viability assessment by August 7.
The Commission meets on September 22 to deliberate on the viability assessments.
Subscribe to:
Posts (Atom)
