Appalachian Power, a subsidiary of American Electric Power, announces tenders for the supply of 1.1 GW of renewable energy

Appalachian Power (APCo), based in the United States, announced the publication of three requests for proposals (RfPs) aimed at securing energy and renewable energy certificates (RECs) from wind and solar projects, as well as battery energy storage systems (BESS), regardless of whether they are co-located or stand-alone.

The deadline for submitting offers for all Requests for Proposals is July 16, 2024.

Request for quotation 1 (RfP 1):

APCo is seeking to acquire wind and solar projects, together with a nearby or stand-alone BESS, with a total capacity of up to 800 MW through one or more purchase and sale agreements.

The minimum acceptable project sizes are as follows:

PJM Resources: Minimum of 50 MW for wind, solar and photovoltaic projects with co-located BESS and 10 MW for stand-alone BESS.

APCo distribution resources: Minimum 10 MW for solar projects using co-located BESS and stand-alone BESS. APCo is interested in projects at various stages of development, including completed projects whose commissioning date is expected on December 15, 2028.

To be considered, projects must qualify for the full Federal Production Tax Credit or the Federal Investment Tax Credit.

Eligible projects should connect to the PJM Interconnection, Regional Transmission Organization (RTO), or APCo distribution system within PJM, preferring locations in Virginia or West Virginia.

All projects must undergo a PJM System Impact Study.

Request for quotation 2 (RfP 2):

APCo’s objective is to purchase energy and environmental attributes, including RECs, from wind and solar projects with a total capacity of up to 300 MW under one or more power purchase agreements (PPAs).

The minimum project size under this RFP is 5 MW for solar projects and 50 MW for wind projects.

APCo seeks renewable energy products from viable projects that supply energy to the PJM Interconnector or APCo system through PPAs, covering energy, capacity, environmental attributes (including RECs) and ancillary services (if available).

Projects should be operational by December 31, 2028, and PPAs are for 20 or 30 years, although proposals for alternative terms are welcome.

Proposals may include an option for APCo to purchase the project at a fair market price upon expiration of the PPA.

All projects must be located within the PJM Interconnection.

Request for quotation 3 (RfP 3):

APCo is seeking proposals to acquire unbundled Renewable Energy Certificates (RECs) from renewable sources.

These RECs must comply with the Virginia Renewable Portfolio Standard and be validated by a certificate number in the PJM Generation Attribute Tracking System (PJM-GATS).

Proposals should cover a period of at least five years, but no more than thirty years, starting on January 1, 2027, leaving room for alternative proposal options.

Eligible renewable resources include:

• Photovoltaic or wind projects in PJM.
• Declining water resources not owned by utilities, generating less than 65 MW, brought into operation after December 31, 1979, or having incremental generation exceeding 50% of original capacity after December 31, 1979, located in the Commonwealth or PJM.
• Waste-to-energy or landfill gas resources in the Commonwealth that were placed in service by 1 January 2020, excluding resources using waste heat from the combustion of fossil fuels or forest/woody biomass.
• Biomass-fired installations in the Community, put into operation from 1 January 2020, supplying to the network not more than 10% of their annual net production or 15% of the total energy useful to entities other than interconnected production plants.

RECs must come from an entity-specific resource and be submitted to APCo by the 15th day following the month in which they were generated. REC delivery must be made via the PJM-GATS system to the designated APCo account.

Related