The additional renewable energy – the equivalent of one large wind farm – is expected to help PGE meet its proportionate share of Oregon’s greenhouse gas reduction goal, which will require cutting carbon emissions in the utility’s system 80% by 2050, PGE added in its statement.
Furthermore, the additional renewable energy will count toward achievement of Oregon’s renewable portfolio standard, under which PGE must supply 50% of its customers’ electricity needs from qualifying renewable resources by 2040.
Bids submitted when the RFP is finalized and issued must meet a minimum size of at least 10 MW, and can represent various technologies, such as geothermal, biomass, biogas, solar, wind, and hydroelectric power, the company added. Bids can also be structured in various ways, including power purchase agreements or proposals for facilities that PGE would own and operate.
PGE added that if bids received prove cost effective for service to customers, then PGE may acquire a single resource or a mix of resources to achieve the total desired renewable energy target, and expects the resources acquired to be brought into the company’s portfolio in the 2020-2021 timeframe.
PGE said that by sharing the draft, it is giving potential bidders and interested stakeholders an opportunity to ask questions and offer suggestions to improve the RFP before it is formally issued. Any resulting changes will be incorporated prior to issuing the final RFP this spring, the company said.
According to the draft RFP, the timing of the RFP is intended to enable resources to capture for customers the value of federal renewable electricity tax credits, including the Production Tax Credit (PTC) and the Investment Tax Credit (ITC).
The tentative schedule noted in the draft RFP calls for PGE to issue the final RFP on May 8; for RFP proposals from bidders to be due on June 15; and for “final contracts with winning bidders, PGE” issuing notice to proceed (if necessary) on Dec. 31.
The RFP will be conducted under guidelines established by the Oregon Public Utility Commission and is a significant step in implementing PGE’s current integrated resource plan, which the commission acknowledged last year, the company said in its statement. Consistent with those guidelines, the commission has retained an independent evaluator, Bates White, to monitor PGE’s procurement process, the company said.