Dispersed Power Production Program

Thanks to our Dispersed Power Production program, a facility that generates (or co-generates) up to 80 MW of renewable power may qualify to connect to TVA’s power lines.

Once connected, a qualifying facility can use its power for itself and sell any extra power to TVA at TVA’s avoided costs, or it may sell all of its power to TVA at TVA’s avoided costs. (Avoided cost simply means the wholesale rate TVA projects for itself with no incentives or retail mark-up).

This program supports our efforts to promote energy efficiency, increase renewable energy (e.g., hydro, wind, solar) and provide the Valley with low-cost, reliable and clean power.

To participate in the program and sell power to TVA, call (423) 751-8640 or email dpp@tva.gov and request a standard contract.

Small Residential and Commercial

For generation with gross output no greater than 50kW each participant must:

• Contact the local power company to arrange a safe, reliable connection to the grid—including provisions for system protection (e.g., islanding prevention and disconnect switch)—and meet metering requirements
• Notify TVA of the interconnection (screening or other review isn’t required by TVA Transmission because the size is ≤50 kilowatts)
• Pay all interconnection and metering fees

Prices paid under the program are set by TVA are currently updated monthly. No program volume caps currently are in place for participation.

Configuration Options

The following three configuration options apply to residential, commercial and end-use customers connecting with a local power company for on-site generation with gross output less or no greater than 50 kW.

Self-Generation

The electricity produced serves the facility’s needs first. Any excess electricity is delivered to the power grid without payment. If the facility needs additional electricity, it must be bought from the local power company. (A meter capable of recording only kW/kWh received from the local power company is required.)

Self-Generation and Dispersed Power Contract

The electricity produced serves the facility’s needs first. TVA purchases any excess electricity that is delivered to the grid. If the facility needs additional electricity, it must be bought from the local power company. (A bidirectional meter capable of recording kW/kWh received from the local power company and delivered to the power grid on separate channels is required.)

Dispersed Power Sell-All Contract

All of the electricity produced and delivered to the power grid is sold to TVA. The facility buys all of its electricity from the local power company. (Two meters—one for electricity purchased by the customer from the local power company, and one for electricity generated by the customer and sold to TVA—are required.)