Developers of new small to mid-size renewable energy projects in the TVA service area can participate in TVA’s Renewable Standard Offer, which offers set prices for power generated by major renewable technologies.

Renewable power purchase plans with a set price, or “standard offer,” are used by a number of states and utilities across the nation to promote renewable energy markets. TVA’s Renewable Standard Offer will help support TVA’s vision and long-term strategy to emphasize cleaner air and greater energy efficiency.

Benefits of the Renewable Standard Offer

TVA’s Renewable Standard Offer will:

• Help support the growth of the renewable generation industry in the region
• Promote TVA’s economic development efforts
• Contribute to the development and use of alternative sources of energy in the TVA service area and across the country.

Returns can be significant. Seasonal and time-of-day prices for hourly delivered energy output are set as of the date of execution of the contract agreement, reflecting varying demand for power at different seasons and times of the day.

A typical annual average price could be 5.5 cents per kWh, with pricing varying between 16 cents per kWh on hot, high-demand afternoons in July and August, and 3.5 cents in early morning hours in the fall and spring.

Learn more about pricing

While TVA’s Generation Partners program is limited to renewable energy projects of less than or equal to 50 kilowatts (kW), the Renewable Standard Offer is designed for developers of larger projects.

Projects must:

• Be located in the Tennessee Valley region
• Be greater than 50 kW and less than or equal to 20 megawatts
• Be focused on solar, wind, biomass gasification, and mature renewable technologies such as biomass direct combustion, methane recovery, and co-firing of 50% or more biomass
• Establish interconnection with a power distributor’s or TVA’s electric system
• Have gone online no earlier than Oct. 1, 2010.

Learn more about eligibility requirements

A developer’s application for the Renewal Standard Offer must include the following details regarding the project:

• Gross nameplate capacity (the maximum rated output of a generation source, commonly indicated by a nameplate attached by the manufacturer to the equipment)
• Expected capacity factor (the ratio of the actual output of a power plant over a period of time to its output if it had operated at full nameplate capacity the entire time)
• Requested term of the Renewable Standard Offer contract (10, 15 or 20 years)
• Renewable fuel(s)
• Proposed delivery point
• Evidence that the applicant has either title or rights of access to the proposed project site.

Applicants are responsible for interconnection costs, costs related to possible environmental review of the project, payment of performance assurance securities, and nonrefundable application fees.

The investment required is significant. The application fee is $.50/kW of the project’s gross nameplate capacity. Performance Assurance costs for a 10 year, 200 kW project can total up to $25,000 in collateral.

Learn more about application