Posted by: jbarnesca | July 22, 2010

Surprise Change in SCE RSC Solicitation for 2010

Today SCE sent out a pre announcement of the start of their solicitation for all RSC eligible energy projects for their annual RFO.  This is for projects of less than 20MWp in size.

But a major change was announced.  The winning bids will not be required to be tied to the MRP table.

Here are two paragraphs from that announcement.

Southern California Edison (“SCE”) will officially launch the 2010 Renewables Standard Contract Request for Offers (“RSC-RFO”) on Monday, August 2, 2010.  This program is open to all RPS eligible technologies 20MW or less and interconnected within the CAISO control area.  You are welcome to download and review the materials when we make them available on August 2 at SCE’s website at [].

You will notice two key changes from the 2009 RSC Program.  First, the 2010 RSC program will pay as bid for those selected in the program versus a predetermined price in previous years.  Second, projects must have forecasted commercial operating dates within three years of CPUC approval of the power purchase agreements.  Most other details of the program will remain similar to previous years, but please review all program materials for important details and requirements.

I did not realize this change was about to happen.  What this means is to be determined, but I will comment on this when more facts are known from the bidding conference and other information later.

One consequence could be all wind farms winning most of the bids at the low ball price of around the old MPR table.  Or maybe, maybe solar PV farms would be awarded PPAs at rates where they can make a tolerable IRR for the investors. 

Hope the later is the consequence of this new change in policy.


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