On January 11, 2013, the Board of Water and Power Commissioners (Board) approved the 100 Megawatt (MW) FiT Set Pricing Program as the first component of the 150 MW FiT Program. The first 20 MW allocation for the 100 MW FiT Program will be available on February 1, 2013 until June 28, 2013.
Applications for projects 30 kW to 3 MW will be accepted on a first come, first served basis at the LADWP’s Vendor Liaison Center (see Section 4.3 of the FiT Set Pricing Program Guidelines). During the first five (5) business days of an application period, all submitted applications will be prioritized on the FiT Reservation List by lottery. Applications received after five (5) business days will be date and time stamped. LADWP will confirm allocation reservations based on the priority of the FiT Reservation List for up to 20 MW. The base price of energy will be fixed for up to 20 years with the first 20 MW available at $0.17/kWh. Future 20 MW tiers will be offered on a declining tier system (additional details are highlighted in Section 4.2 of the Set Pricing Program Guidelines).
LADWP is implementing the 100 MW FiT Set Pricing Program to encourage renewable energy development within the Los Angeles Basin and to help meet the 33% Renewable Portfolio Standard mandate by 2020. The FiT Program will allow the LADWP to partner with program participants to purchase, under a standard power purchase contract, energy generated from a participant’s renewable energy generating system. These systems will be located within the LADWP's service territory and interconnected to the LADWP electrical distribution system. All the energy generated by these systems will be purchased at a fixed price, subject to time-of-delivery multipliers, for a term of up to 20 years.
The 100 MW FiT Set Pricing Program is the successor to the LADWP’s 10 MW FiT Demonstration Program which was Board approved on April 17, 2012 and launched May 17, 2012. The Demonstration Program helped gauge market pricing and test initial program’s structure. It restricted projects to solar energy systems between 30 kW to 999 kW. Projects under the Demonstration Program were selected under a bid pricing mechanism. LADWP received 26 applications totaling 7.2 MW, of which 14 were eligible for contract signing. The weighted average bid price of the 14 projects is $0.175/kWh.
Question and Comments
For additional information, contact the FiT Program hotline at (213) 367-2100 or by email at FiT@ladwp.com.