Posted by: jbarnesca | September 8, 2012

PG&E 2012 PPA Winners

Yesterday the advice letter was submitted by PG&E for the 2012 winners of their IPP portion of the Photovoltaic (“PV”) Program.  This is the annual  50MW  program started last year that expires after 250MW have been awarded and three more years.  20MW is the max size for responses in this program.

Two 20MW wins were by Recurrent Energy and SKIC Solar LLC.  The Recurrent project is called Kent South in Kings County and the SKIC project is in Kern County.  The remaining amount of 8MW was won by SilRay with 4  separate 2MW projects in Northern California.

This totals 48MW, not the desired 50MW.  As they explain in the advice letter, another winner(probably another 20 MW project) dropped out at the last moment and one of the stated winners then increased their winning amount to cover some of the shortage.

So congratulations to the usual winner Recurrent and the new winners of SilRay and SKIC Solar.  SKIC is the South Kern County Industrial Complex to the SW of Bakersfield.

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Responses

  1. Hi John, thanks for the info.

    Have you checked the MWh/MW ratios for SilRay’s projects? It’s so low! Even assuming that, for those projects, MW refers to MWDC, there is no way that the project can be competitive with that weak yield. Let alone a 2MW project!

    Cheers!

    • If one checked prior RAM etc winners you would also see that you need to be South of Bakersfield to get enough output in such highly competitive PPA price programs. THe winners in Lancaster are winning for obvous reasons. The 20MW projects were at the Northern border of when it gets tougher for irradiation output. Climbing into the hills near Avenal is better, of course.

      I have never found a “reverse auction” small project able to compete also north of Fresno, as they say.

      Most investor groups still require an unlevered IRR toward 8%, at least they try. Do these make it????


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