The Tennessee Valley Authority (TVA) board has authorized the purchase of as much as 2,000 MW of renewable energy by 2011 as part of TVA's plan to have 50% of its power supply come from renewable energy sources by 2020. TVA President and CEO Tom Kilgore is now authorized to approve power purchase agreements and contracts for clean energy.
TVA may begin entering into contracts as early as June 1 with some of the renewable or clean energy suppliers that provided the most competitive responses to a request for proposals (RFP) issued in December of last year. Eligible renewable energy sources include wind, hydro, solar and biomass.
Kilgore notes that TVA will negotiate contracts that are ‘competitive with forecasted electricity market prices over the term of the contract.’ Contract terms will be up to 20 years. TVA received more than 60 responses to its RFP to provide clean and renewable energy by June 2011. TVA notified the responders who met the criteria and is continuing discussions with them.
SOURCE: Tennessee Valley Authority