Appalachian Power issues RFP for up to 300 MW of solar and/or wind power

The minimum nameplate rated bid size for the RFP is 50 MWac, the RFP said, adding that bidders may include an alternate proposal for a solar or wind energy resource with a battery energy storage system

American Electric Power’s Appalachian Power Company (APCo) on Feb. 15 said that it has issued a request for proposals (RFP) for up to 300 MW of solar and/or wind generation resources, with proposals due by March 31.

As noted in the RFP, American Electric Power Service Corporation (AEPSC) is administering the RFP on behalf of APCo.

APCo has issued the RFP to support its requirement to provide its customers with carbon-free generation, consistent in the requirements of the Virginia Clean Economy Act for a Phase I utility, the RFP said, noting that APCo is required to meet annual targets that reach 100% by 2050.

The minimum nameplate rated bid size for the RFP is 50 MWac, the RFP said, adding that bidders may include an alternate proposal for a solar or wind energy resource with a battery energy storage system (BESS Option); standalone BESS proposals will not be accepted.

The optional BESS must be no larger than 20% of the nameplate rating (MWac) of the solar or wind energy resource, and for four and/or eight hours of capacity, the RFP said.

APCo is seeking wind projects that will qualify for the federal production tax credit (PTC), and solar projects that will qualify for the federal investment tax credit (ITC). The RFP added that while qualifying for those federal tax credits is not an eligibility and threshold requirement for participating in the RFP, the value brought to the proposals in buying down the cost of energy by utilization of those tax credits is significant, and is included in the company’s economic analysis and ranking of each of the respective proposals.

Each project must be a complete, commercially operable, integrated solar- or wind-powered electric generating plant, including all facilities that are necessary to generate and deliver energy into PJM Interconnection by the expected commercial operation date (COD), the RFP said, noting that the company is pursuing projects that can achieve an expected COD by Dec. 15, 2023. However, the company will consider proposals with alternate target CODs of Dec. 15, 2024.

Solar projects must be interconnected to PJM and located in Virginia, the RFP added, noting that wind projects must interconnect to PJM, and that while APCo prefers that wind projects be located in Virginia, wind projects located outside of Virginia are also eligible to participate in the RFP.

Among other things, the RFP noted that under its schedule, the contract execution is slated for Oct. 1.

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Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 16 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.