Seasonal and time-of-day prices are set at the date of execution of the contract agreement
Typical pricing for 2013: Varying between $0.029/kWh-$0.082/kWh with an average of $0.037/kWh
The Tennessee Valley Authority (TVA) now compliments the small generation Green Power Providers Program by providing incentives for mid-sized renewable energy generators between 50kW and 20MW to enter into long term price contracts. The goal for total production from all participants is 100MW, with no more than 50MW from any one renewable technology.
TVA bases the standard offer for customer generators off of a seasonal time-of-day averages chart, which sets base prices for the term of the contract. For projects approved after January 2013, prices increase at a rate of 5% per year beginning in 2014 and may be changed with 90 days notice by TVA (no more than 1% per year). For 2013, the average price is expected to be $0.037/kWh, with a maximum of $0.082/kWh and a minimum of $0.029/kWh. Learn more about pricing [http://www.tva.com/renewablestandardoffer/pricing.htm here]. Generation is recorded monthly through metering equipment installed by TVA and paid for by the participant.
All energy output, Renewable Energy Credits (RECs), or other environmental attributes from installations under this program belong to TVA, and all marketing of the program should indicate that TVA (not the power seller) consumes all of the energy from these renewable energy projects. Biomass, Wind, or Photovoltaics can be interconnected through either TVA's transmission system or partners' distribution systems under 10, 15, or 20 year contracts. Biomass should co-fire 50% or more with the fuel consumption content approved by TVA and separately metered. The remainder of the biomass production can be purchased through the TVA's Dispersed Power Production Program.
Before approval, the seller must provide TVA with project financing arrangements, interconnection agreements between the seller and either TVA or a Distributor, and TVA metering installation plans at an environmentally acceptable location. The participating power producer is responsible for interconnection, performance assurance, and application costs. TVA, or an approved third party, will also perform an environmental review at the seller’s cost..