Today, San Diego Gas & Electric (SDG&E) issued a Request for Offers seeking eligible renewable resources that the utility will use to meet its California Renewable Portfolio Standard requirements.  Respondents may submit one or more of three alternative proposals:

  • Power Purchase Agreement (PPA).  Respondents are asked to propose a 10, 15, or 20-year PPA for capacity and/or energy, but SDG&E will nevertheless consider proposals with shorter or longer durations.  Eligible Resources must be delivered to a point within California and must be begin deliveries sometime between 2010 and 2013.
  • PPA with Buyout.  Respondents offering PPAs may also submit an option price that SDG&E may exercise to purchase the resource as well as associated environmental attributes, land rights, permits, and other licenses upon conclusion of the PPA term.  This alternative is limited to resources located in San Diego County, parts of Orange County within SDG&E’s service territory, or Imperial Valley areas.  Like respondents offering under the PPA alternative, respondents interested in offering resources under the PPA with Buyout alternative must begin delivering energy and/or capacity between 2010 and 2013.
  • Turnkey Facilities.  Respondents to the RFO may also propose to develop and construct a new renewable energy generation facility that SDG&E will acquire.  SDG&E is proposing the same locational requirements that apply to PPA with Buyout projects.

A limitation that applies to all respondents is that resources located in SDG&E’s service territory must be no smaller than 1.5 MW, and resources outside of SDG&E’s service territory must be no smaller than 5 MW.

This RFO may be a great opportunity to transact with SDG&E as it endeavors to comply with California’s ever-increasing RPS standards.  SDG&E will hold two pre-bid conferences:  one in San Diego on August 5, 2009, and the other in El Centro on August 12, 2009. Those interested in attending a pre-bid conference should register by July 31. 

For more information, click here:  SDG&E 2009 RFO Info