Last week the California Public Utilities Commission (CPUC), proposed that the state adopt a feed-in tariff for renewable energy systems between 1 megawatt (MW) and 20 MW in capacity.
However, the program would not set a fixed rate for renewable power, like well-known feed-in tariffs in Germany and Spain. Instead, it would create a reverse-auction, whereby renewable energy project developers could bid on the right to provide electricity to the state’s utilities.
The proposal attempts to incorporate market pricing to avoid overpayment for renewable energy, while still requiring utilities to purchase larger amounts of clean electricity.
As proposed, the program would essentially be capped at 1000 MW. The state’s three investor-owned utilities would be required to hold a minimum of two auctions a year until 1000 MW solar, wind, geothermal or biomass power has been installed.
If the program does not meet with substantial opposition, it could be in place by early 2010.
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