Georgia Power on May 21 filed with the Georgia Public Service Commission final drafts of the company’s 2022/2023 Utility Scale Renewable Generation Request for Proposal (RFP) and pro forma power purchase agreements, for which the company requests commission approval.
As noted in the draft RFP, the commission in July 2019 issued an order adopting an amended stipulation concerning Georgia Power’s 2019 Integrated Resource Plan (IRP), which amended and approved a stipulation setting forth a supply side plan that included the directive to procure 2,000 MW of utility scale renewable resources: 1,000 MW to be dedicated to all retail customers, and 1,000 MW to supply Georgia Power’s Customer Renewable Supply Procurement (CRSP) Program for subscription by eligible commercial and industrial (C&I) customers.
According to the draft RFP, the company will issue two RFPs to meet the utility scale procurement requirements. This first Utility Scale Renewable RFP seeks renewable resources, with a total procurement of at least 800 MW up to a maximum total procurement of 1,200 MW, with in-service dates of 2022 or 2023: 500 MW for all retail customers, 300 MW for subscription by existing CRSP-eligible C&I customers, and up to 400 MW for subscription by CRSP-eligible customers with qualifying new load additions, the draft RFP said.
The second RFP is expected to be issued in 2021, and is expected to seek renewable resources with in-service dates of 2023 or 2024: 500 MW for all retail customers, 300 MW for subscription by existing CRSP-eligible C&I customers, and the remaining megawatts allocated for CRSP-eligible C&I customers with qualifying new load additions left unsubscribed following the first RFP. The draft RFP also noted that the 400 MW allocated for procurement for CRSP-eligible C&I customers with new load additions will be procured even if no new load customers apply to participate in the CRSP Program.
Between the two Utility Scale Renewable RFPs, Georgia Power expects to procure a total of 2,000 MW, with at least 800 MW procured in each RFP. The draft RFP also noted that the remaining 400 MW will be procured in whole or in part in one or both RFPs, based on the timing of customer interest.
The draft RFP noted that the renewable energy must be sourced from one or more of these sustainable, perpetual, or renewable fuels: solar photovoltaic (fixed or tracking); solar thermal; wind; geothermal (natural or enhanced); biomass or biogas; hydro; or other renewable fuel or technology as described in the RFP.
Georgia Power will accept bids for single, unique proposals; proposals that combine resource options into a single unique proposal, provided, however, that each resource must individually meet the size requirements of the RFP; proposals that are either mutually exclusive or contingent upon one another; and proposals that include an on-site energy storage option, provided, however, the storage device must be charged solely by the renewable resource for the term of the power purchase agreement (PPA).
The draft RFP also said that a bidder desiring to submit a bid proposal for a facility fueled by any “other renewable fuel or technology,” as described in the RFP, must contact the independent evaluator (IE) by May 29 through the IE’s website.
Georgia Power’s renewable cost benefit (RCB) framework will be used to evaluate the bids received in the RFP, the draft RFP said, adding, for instance, that the bid price for the renewable energy, the renewable cost benefits, plus the costs for any required grid improvements to the Southern Company transmission system or Georgia Power’s distribution system that Georgia Power will impute and incur or would otherwise remain obligated to incur, must not exceed the company’s projected avoided costs on a levelized basis.
Georgia Power will accept proposals for new and existing facilities. The draft RFP also said that Georgia Power will accept proposals for a facility located anywhere in the United States, provided the facility can deliver the energy to Georgia Power under certain interconnection options, including interconnecting to the Southern Company transmission system.
Among other things, the draft RFP also said that Georgia Power will consider proposals for a PPA term of 15, 20, 25, or 30 annual periods, at the bidder’s option.
According to the solicitation schedule included in the draft RFP, the RFP would be released on June 19, with the company finalizing and executing PPAs by April 27, 2021.