Dominion Energy issues RFP for up to 500 MW of solar, onshore wind proposals

Dominion Energy (NYSE:D) on Oct. 24 said that it is seeking bids for up to 500 MW of solar and onshore wind generation as part of a plan to develop 3,000 MW of additional solar and wind power under Virginia’s new Grid Transformation and Security Act (GTSA) of 2018.

As noted in an Aug. 3 statement from Virginia Gov. Ralph Northam, the GTSA, which Northam signed in March, established the state Legislature’s finding that the Coastal Virginia Offshore Wind demonstration project is in the public interest and ensured that Dominion Energy can fund the project using existing base rates with no added cost to ratepayers.

Dominion, in its statement, said that it has pledged to have 3,000 MW of new solar and wind energy under development or in operation by early 2022. To meet that long-term commitment, the company intends to issue a request for proposals (RFP) each year until the pledge has been met.

The company added that the Oct. 24 Solar and Onshore RFP is soliciting bids for energy, capacity, and environmental attributes, including renewable energy certificates, for new solar and onshore wind facilities at least 5 MW (ac) in size.

According to the RFP, each proposal must represent generation at a single site and is to not reflect an aggregate of multiple facilities at separate sites to meet the minimum size threshold.

The RFP also noted that the company is seeking proposals based on any of these structures, with bidders having the option of submitting more than one proposal for a single facility, each based on a different structure:

  • Power purchase agreement (PPA) – An agreement that provides the company the exclusive right to 100% of the net electrical output of the facility from which such output will be delivered. The contract delivery term is to be 20 years. Such PPA is to also provide the company an option to acquire the facility’s assets on or after the sixth full year of operation, priced at the “then market price”
  • Asset acquisition of development project (development proposal) – A proposal that provides a price for the sale of a development project, including property rights, permits, interconnection queue position, reports, as well as preliminary design documents and agreements that would allow the company to complete development and construction of the facility by the expected in-service date

For PPA proposals, the RFP added, the bidder must propose a delivery of unit capacity commencing in 2020. Additionally, development proposals for solar and wind projects must demonstrate capability to begin construction in, or prior to, 2020 to ensure that the company can secure for its customers the associated investment tax credit (ITC) or production tax credit (PTC). The RFP added that proposed facilities are to be in service and capable of delivering their full rated output by Dec. 31, 2020. The delivery year is to be clearly designated as part of each proposal and supported by a firm contractual commitment, the RFP said.

For development proposals, proposed facilities are to be delivered to the company in a stage that is capable of starting construction in, or prior to, 2020, and being built, interconnected, and made operational by the company by Dec. 31, 2020.

The company will only consider proposals for facilities located in Virginia, the RFP said, adding that in the event that facilities are connected at the distribution level, they must be directly interconnected to the company’s distribution system. In the event facilities are connected at the transmission level, the company prefers facilities that are physically located in its service area, but will consider facilities in other service areas, the RFP said.

Among other things, the RFP said that key dates include Nov. 2, which is the “intent to bid form & confidentiality agreement deadline”; Dec. 13, which is the “acquisition proposal submittal date”; March 14, 2019, which is the “PPA proposal submittal date”; and 2Q19, which is when the RFP will conclude.

About Corina Rivera-Linares 3233 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.