CHARLESTON, W.Va. — Appalachian Power is trying to meet its future clean energy needs.
The company says they are seeking proposals for renewable energy and battery energy storage resources. Three Requests for Proposals (RFPs) were issued Friday for wind, solar, battery energy storage systems, and renewable energy certificates.
Aaron Walker
Under the Virginia Clean Economy Act (VCEA), Appalachian Power must meet annual escalating Renewable Energy Portfolio (RPS) requirements in order to deliver 100% carbon-free energy to its customers in Virginia by the year 2050. The company is also looking for bids for solar and battery energy storage resources in West Virginia due to Senate Bill 583.
“The advertised RFPs play an important role in helping us meet our clean energy commitments,” said Aaron Walker, Appalachian Power President and COO. “These projects will also support local communities by generating jobs and tax base.”
The first RFP requests bids for up to 800 megawatts (MW) of wind and/or solar resources. It also mentions co-located and standalone battery energy storage systems. Appalachian Power will look to acquire completed projects or ones in the development stage through one or more purchase and sale agreements (PSAs). The company says they prefer projects located in Virginia or on eligible sites in West Virginia.
The RFP reads, “Eligible sites in West Virginia are those previously used in electric generation, industrial, manufacturing or mining operations, including, but not limited to, brownfields, closed landfills, hazardous waste sites, former industrial sites, and former mining sites. Facilities must achieve a commercial operation date of no later than Dec. 15, 2028, and be within the PJM region and/or interconnected to the Appalachian Power distribution system.”
Only resources that interconnect to PJM and are at least 50 MW in size for wind and solar and 10 MW in size for standalone battery energy storage systems qualify to be considered. Resources that interconnect to the Appalachian Power distribution system must be at least 10 MW in size.
The second RFP requests bids for up to 300 MW of solar and/or wind resources from one or more long-term power purchase agreements (PPAs). Under a PPA, the company enters into an agreement for the energy, capacity, ancillary services, and environmental attributes including renewable energy certificates (RECs) from facilities located within the PJM region and/or interconnected to the Appalachian Power distribution system. Resources must be at least 50 MW in size for wind and 5 MW in size for solar and be operational by Dec. 31, 2028 to be considered.
The third RFP focuses on renewable energy certificates (RECs). A REC is a market-based instrument issued when one megawatt-hour of electricity is generated and then delivered to the electricity grid from a renewable energy resource. All RECs purchased must be produced from eligible energy resources, per the RFP.
Bidders may submit proposals for contract terms between five and 30 years starting on Jan. 1, 2027. Alternative terms will also be considered.
RFP participation criteria, required forms, and other information sought by businesses can be found online at www.appalachianpower.com/rfp. Proposals must be submitted by July 16, 2024.