Posted by: jbarnesca | October 29, 2010

Total Surprise of Positive FERC Ruling on Value of Solar

The last few days have been buzzing with the consequences of the FERC ruling to allow some value for solar PV that would be above the MPR replacement value.

A great review in GreenTech Media with Ted Ko from the FIT coalition should be the basis for starting to understand how this allows the value for the SB 32 FIT program to be at a higher rate.  In addition, the value for SRECs are now on the table.

In the article Ted is quoted as stating:

“Besides adding locational benefits to the avoided cost, it shifted the definition of avoided cost from the lowest estimated price a utility would have to pay to obtain power from a new natural gas plant to the lowest estimated price a utility would have to pay to obtain power from a comparable resource.”

This means that the value for solar PV in the late afternoon in the summer should be compared to the cost and pollution of the old coal fired peaker plants in the central valley, and not to a brand new and more efficient natural gas plant.

Such a wonderful ruling to get us off the “must be at the MPR” table pricing floor.  A great job by those that fought for this change.  My hat is off to them for all of us in the development of Utility Scale Solar farms in CA and the rest of the US.

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Responses

  1. John, Once again you bring the most relevant industry changes into the light in a clear and focused commentary


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