California passes 1 GW green power auction programme
(ADPnews) - Dec 20, 2010 - The California Public Utilities Commission passed a pilot green power incentive scheme requiring state utilities to buy up to 1 GW of power from mid-sized clean power facilities through competitive auctions.
The so called Renewable Auction Mechanism (RAM), is aimed at supporting small to mid-sized clean energy development, the commission said in a statement on Friday.
Under the programme, California's three largest investor-owned utilities have to call competitive auctions twice a year for renewable energy from facilities with installed capacity of 1.5 MW to 20 MW. Utilities are also required to award contracts "starting with the lowest cost viable project and moving up in price until the MW requirement is reached for that round".
Eligible developers are to submit a development security and guarantee a relatively short project development to ensure project viability and reasonable pricing.
Utilities have to to submit implementation plans in 60 days. The programme is scheduled to be launched in the spring of 2011.