Posted by: jbarnesca | February 13, 2011

PG&E IPP Solar PV Bidder’s Conference

Last week PG&E hosted a bidder’s conference for the 250MW Photovoltaic Program.  The auditorium was packed with about 200 attendees in person, and there was a sign up registration of ~450 with a two people per company max.

This program has been talked about many times in the past, so let me get to some key points.  This is another “reverse auction” for a 50MW offering with bids of up to 20MW accepted.  They are on a time schedule to notify the Selected Offers by April 15th and sign PPAs with the final Selected Offers by June 10th.  With the timing of submittal to the CPUC of Advice Letter Filings on July 15, some of these projects could start construction in the early fall of 2011.

This chart is very revealing and matches what has been said before in this blog posting regarding the expected number of winners.

With a little imagination you can assume that there will be two very competent developers that bid 20MW projects with very low bid prices; thus make the red offering another 20MW project and you see what will happen. There will be no more than 5 winners and the winning bids must be at or lower than $0.10/KWh before TOD factor.

They were nice to show the audience that with their example which is repeated here.

“Example: A $100/MWh Contract Price would result in payments of $220/MWh for deliveries in July at 2:00 PM and $106/MWh for deliveries in October at 2:00 PM”

My focus was on the nice side by side chart of the “Financial Security Postings”  required for a PG&E interconnection onto the CAISO controlled transmision lines or the PG&E controlled distribution lines systems.

There are three separate security postings required  called the initial, second, and third postings.  Estimating and budgeting  for these multi faceted estimates for the first security deposit and second security deposit for the PG&E interconnection cost estimates of Network Upgrades, Interconnection Facilities and Distribution Upgrades, and deliverability charges is a little complex.  Different security deposit mins and maxs and rules apply for each stage of the PG&E distribution line GIP or CAISO transmission line GIP rules.

Wrong estimates and unexpected fees here can easily sink the project required “IRR ship”.

For this RFO the interconnection applications would have to be already filed under the old CAISO SGIP or old PG&E WDAT processes to meet the requirements for an acceptable wining PPA bid.  They encouraged the audience to try a fast track application for a small project at the 2MW or 3MW level, but the odds of making the deadline of March 22nd are a little tough for new projects still trying to obtain site control.

It is good to see so many new developers interested in jumping into the 1.5-20MW DG solar farm space in Northern CA PG&E territory for 2011.  Go CA and PG&E!!


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