Appalachian Power Issues Tenders to Procure 1.1 GW of Renewable Energy

The last day to submit the bids is July 16, 2024

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U.S.-based Appalachian Power (APCo) has issued three requests for proposals (RfP) to procure power and renewable energy certificates (RECs) from wind and solar power projects, along with co-located and standalone battery energy storage systems (BESS).

The last day to submit the bids for all the RfP is July 16, 2024.

RfP 1

APCo seeks to acquire wind and solar projects and or co-located standalone BESS up to 800 MW through one or more purchase and sale agreements.

The minimum acceptable project size is:

  • PJM Resources: 50 MW minimum for wind, solar, and solar with co-located battery energy storage systems, and 10 MW minimum for standalone BESS.
  • APCo Distribution Resources: 10 MW minimum for solar, solar with co-located battery energy storage systems, and standalone BESS.

APCo is looking for projects in the development stage and completed projects that are expected to be operational by December 15, 2028.

The projects must qualify for the full Federal Production Tax Credit or Federal Investment Tax Credit.

To qualify for consideration, projects must interconnect to the PJM Interconnection, Regional Transmission Organization (RTO) or the APCo distribution system, and be located within the PJM footprint, with a preference for projects located in Virginia or West Virginia on eligible sites.

Projects must be connected to PJM and have a completed PJM System Impact Study.

PJM Interconnection is a RTO that coordinates the movement of electricity through all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

RfP 2

APCo intends to procure power and environmental attributes (including RECs) from wind and solar projects of up to 300 MW through one or more power purchase agreements (PPA).

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

APCo seeks renewable energy products from a low-cost project delivering energy into PJM Interconnection or the APCo system via a PPA, including energy, capacity, environmental attributes (including RECs), and ancillary services (if available).

Projects should be operational by December 31, 2028.

The PPA term must be 20 or 30 years, with bidders allowed to offer alternative term proposals.

Proposals may include an option for APCo to purchase the project at fair market value at the end of the PPA term.

Projects must be located within the PJM Interconnection.

RfP 3

APCo has invited proposals for unbundled RECs from renewable resources.

RECs must meet the Virginia Renewable Portfolio Standard, evidenced by a verified certificate number in PJM’s Generation Attribute Tracking System (PJM-GATS).

Proposals must be for at least five years, but no more than thirty years, starting January 1, 2027, with bidders allowed to offer alternative proposals.

Eligible renewable resources include:

  • Solar or wind located within the PJM region.
  • Non-utility-owned falling water resources less than 65 MW, operational after December 31, 1979, or with incremental generation over 50% of the original capacity after December 31, 1979, located in the Commonwealth or within the PJM region.
  • Waste-to-energy or landfill gas-fired resources in the Commonwealth, operational by January 1, 2020, not using waste heat from fossil fuel combustion or forest/woody biomass.
  • Biomass-fired facilities in the Commonwealth, operational by January 1, 2020, supply no more than 10% of their annual net generation to the grid or 15% of their total useful energy to entities other than the interconnected manufacturing facility.

RECs must be produced from a unit-contingent resource and delivered to APCo by the 15th day following the month they are generated. REC deliveries must occur through the PJM-GATS system into an APCo-designated account.

In 2022, American Electric Power Service Corporation, on behalf of Appalachian Power, issued an RfP to procure power from 150 MW of solar projects with optional BESS in West Virginia.

In the same year, Entergy Arkansas, an energy utility in the U.S., issued an RfP to procure 1 GW of solar and wind energy.

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