Duke Energy Carolinas calls for hydro in renewables RFP

Duke Energy Carolinas LLC is calling for proposals to supply energy and capacity from renewable sources including hydropower. Proposals are due July 2.

Duke seeks up to 2,100 MW by 2012 to meet expected renewables portfolio standard obligations from state and federal regulations. It said it reserves the right to revise the request for proposals to conform to renewables portfolio standard requirements as they are developed.

The North Carolina Legislature is considering bills that would set renewables portfolio standards at 10 percent or 20 percent of power supplied by utilities.

�Low-impact,� incremental, ocean hydro eligible

Hydropower eligible for the Duke solicitation includes �low-impact� hydro certified by the Low Impact Hydropower Institute (HNN 4/3/07) , incremental capacity at large-scale hydro projects, and ocean current or wave energy resources.

Duke said the resources must deliver power by Jan. 1, 2012. While the supply resource can be intermittent in nature, Duke said firm or dispatchable supply could be assigned a capacity value in the review process. Additionally, resources must be capable of delivery to Duke Energy Carolinas’ transmission or distribution system and suitable for use as a network resource for Duke, with preference given to those assets within North and South Carolina.

Duke will consider proposals involving power purchase, a power purchase and buyout option, and the purchase of a generating facility. The minimum contract term for any power purchase agreement is three years; contract terms up to 30 years will be considered. Qualifying projects must have a nameplate capacity of 2 MW or greater, and must be capable of delivering at least 3,500 MWh per year at the interconnection point.

Duke expects to select a short-list for further consideration Aug. 31. The company and bidders then will negotiate and execute agreements, to be submitted for regulatory approval by Dec. 31.

The RFP can be downloaded from Duke Energy’s Internet site for renewables, www.duke-energy.com/environment/renewable-energy.asp. Click on the link �Duke Carolinas � Request for Proposals for Renewable Energy Resources.�

Each potential bidder must submit a notice of intent to bid to Duke by May 21. Proposals are due by 4 p.m., July 2, to Duke RFP, c/o Kathy Dunn, Strategic Business Consultant, Duke Energy Corp., MC EC12H, 526 S. Church St., Charlotte, NC 28202.

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