Posted by: jbarnesca | September 16, 2010

SCE 2010 RSC Solicitation Now Closed

Today the bidding process was completed for the SCE Renewable Standard Contract program.  This program was changed this year to allow a “reverse auction” bid that could be above the MPR table for the first time. 

Since this is in SCE territory, there is much gaming concerning using the attributes of the SCE TOU schedule and your optimized design to gain the maximum “average” rate over the year for each bid.  This is fine, as the most competent developers know how to produce the most optimum design for this TOU payment schedule.

My opinion from getting so many calls from new land owners, commercial real estate developers, want to-be-developers, and others is that 10’s of bidders will be totally surprised and disappointed that their bids were rejected and have no idea why that happened.

There should be lots of projects that were started here that will have to regroup for the next round of SCE territory solar PV programs, and need help to figure why they did not win the first round.

This is just my opinion from the calls that I have received regarding making a bid into this program in a fast and hurried manner.

Additionally the requirements concerning “curtailment” make this program a tough one for even the winners.

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Responses

  1. There are positives and negatives to this program. It is positive that rates can be accepted higher than the MPR. There are negatives that you have to pay for interconnect studies without assurance of a winning bid, and there are insufficient quality control mechanisms to ensure a good project.

  2. Hello Dick,
    Listening to the Sept 3 Webinar on this program that dscussed their imposed rules on “curtailment”,reporting, and almost daily bartering on whether they buy your energy at the agreed upon rate, was very disturbing. I accepted detailed “week ahead” forcasting and shut down on a 15 miniute interval, but making these solar farms perform exactly like a large nartural gas or coal plant was not really expected so soon.

    I hope that future programs might relax this onerous issue on solar farms of some smaller sizes, but maybe this is required as a matter of fact going forward.

  3. Hello John, it seems the curtailment option at most is 100hrs/year for on-peak delivery. To compensate the loss in revenue due to curtailment, you could adjust the loses to the bid-price.

    • Hello Joe,
      I did not calculate what the maximum number of hours might be that your power could not be placed into the daily CAISO energy auction. So your comment will now spur me to look at that maximum loss more carefully.

      Thanks for the comment and statement about what one could lose in this regulation.

  4. Our company bid under this RSC-RFO, i guess could disclose some info:

    lowest bid price @11.5cents/Kwh curtailment 50hrs non-peak, 0% escalator

    • Hello Joe,
      Just returned from solar site visits in the Visalia area to see the note.

      I believe the first short listed winners are now announced. Was your company a short list winner?

      • Hi John,
        I found your blog and admit that much of your reporting is “way over my head” but here’s my question and reason to contact you regarding solar sites.
        I have 8+ acres located one-half mile from a PG&E substation in Sanger, California. I would like to lease this property for a solar farm. Could you recommend or advise who to contact to find a lessee?
        Thank you for your time and please forgive me if this entry is inappropriate.
        I regard you an expert in this area and could not find an alternative way to contact you.
        Thank you.
        Scott Holley (559)269-6476

      • Hello Scott,
        Thanks for looking at the blog site, and the topics are indeed specific to the knowlege expected of those developing >3MWp solar PV farms in CA.

        I try to be courteous to all and would spend a short time on the phone to explain and give some “free opinions” on your topic.

        Correspond back to me on this e-mail address jbarnesca@comcast.net and take a look at the company website to see a little more about my companiy in the development business area. Solar Power Development Partners http://www.solarpowerdp.com

        I am moving more full time toward the newly formed company, Solar Land Partners, a co-developer for shovel ready 3-20MWp solar PV projects, but this is not appropriate for the inquiry you made.

        Regards,
        John Barnes

    • Hello Joe,
      There was a option to negotiate either a 50 hrs/yr or 100 hrs/yr curtailment payment schedule, I believe. I noticed you went with the 50 hrs/yr and not 100 hrs/yr, which seems a little to your advantage. Is that the correct reasoning?

  5. Joe, “the lowest price bid” means we think $115/MWh was the lowest price bid into the RFP?

    • Hello,

      Joe can of course answer for his group. But, I would not presume to believe that the bid price of $.0.115/kWh was the lowest winning bid. That of course will be a number that manythemselves will try to figure out from both their multiple winning and losing bids. Then the information passing will cut in among the larger players to get close to what is necessary for the next round.

    • jchilib, our bid was $115/Kwh includes 50hrs curtailment non-peak, with 0% escalator. This bid is somewhat low, our analisys shows the nominal LCOE is 17cents/kwh and total cost at $3.7/watt its a single axis system.

  6. CORRECTION*** bid is $115/Mwh

  7. Joe if you want to buy a 1 MW project we have for sale with signed PPA at a much higher rate email me at dicktalbert@greenpowercap.com

    • I talked to my contacts at SCE; they short-listed hundreds of MWs through this RFP (with a mode of 20 MW), with deliveries through 2013. Clearing price was at or below MPR, implying $108/MWh or less for a 2013 project.


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