Distributed Energy Resources

Kentucky public power utility seeks solar or solar plus storage bids

Kentucky public power utility Henderson Municipal Power & Light (HMP&L) recently issued its first renewable power supply request for proposals for the purchase of solar photovoltaic energy, capacity, ancillaries, and environmental attributes originating from standalone solar-powered generation or solar plus battery energy storage systems.

HMP&L is soliciting long-term proposals to identify low cost stand-alone solar or solar plus storage projects.

As a not-for-profit municipal utility, HMP&L is expected to utilize power purchase agreements with developers to maximize tax benefits. HMP&L is also interested in PPAs with optional purchase rights after the investment tax credits have been captured.

HMP&L will accept proposals from any electric utility, independent power producer, solar/storage developer, or electric power marketer that has solar and storage facilities available, existing and/or planned, and operates within the MISO transmission system.

The RFP seeks proposals of 25 MW to 100 MW (with a procurement target of 50 MW to 100 MW) with terms of 20 to 25 years, with a preference for projects located within Henderson County, Kentucky.

“HMP&L is seeking the best and lowest cost alternatives to secure power supply for its customers, and studies indicate that a mix of resources could meet this goal, including solar,” said the executive team at the utility. “HMP&L is looking forward to working with a company to provide solar power as part of its diverse supply mix to secure low cost and reliable power to meet the needs of its customers for decades to come.”

Additional information is available here.

Located in western Kentucky, HMP&L’s transmission system is interconnected to the Midcontinent Independent System Operator transmission system.

HMP&L has approximately 12,000 meters with an annual peak demand of 107 MW, and annual energy requirements of approximately 625,000 MWh. 

Other public power utilities eye solar plus storage

In May, the Virginia public power cities of Danville and Martinsville, along with Central Virginia Electric Cooperative, issued an RFP seeking proposals from developers for stand-alone solar, stand-alone energy storage or a combination of solar and storage.

In March, Colorado Springs Utilities in March said that it was finalizing negotiations and planned to award a contract for 150 megawatts of new solar generation plus a 25-megawatt battery storage system by the end of 2023.

And the City Council for Norfolk, Neb., in April approved an agreement for the state’s largest community solar project with Nebraska Public Power District that will be tied to a battery energy storage system (BESS) demonstration project expected to be in operation by mid-2020.