The CLEAN LA Solar Program is off to a strong start as Los Angeles Department of Water and Power (LADWP) received applications for 107 megawatts (MW) of potential solar projects during the program’s opening week.
Early interest in the CLEAN LA Solar Program — which allows local businesses, residents, and organizations to install local, renewable energy projects within LAWDP’s service territory and sell power produced to the utility — highlights a significant market opportunity for distributed solar projects in Southern California.
“We are very pleased by the enthusiastic response we’ve seen so far. . .which paves the way for a robust local market and jobs for solar energy,” said Ronald O. Nichols, LADWP General Manager.
The CLEAN LA Solar Program will bring 100 MW of local solar online in LADWP service territory. Procurement is divided into five 20-MW allocations. Within each allocation, 4 MW are reserved for small projects between 30 kW to 150 kW, while the remaining 16 MW are open to larger projects up to 3 MW. The first 20-MW allocation began accepting applications on February 1, and subsequent allocations will open every six months through 2016 — until the full 100-MW program capacity is subscribed.
Contracts feature a 20-year agreement in which LADWP purchases 100 percent of the energy generated by projects at $0.17/kWh for the City of Los Angeles and $0.14/kWh for Owens Valley. The price differential accounts for the cost incurred when transmitting energy from Owens Valley to Los Angeles. The fixed price paid for energy will decline after each 20-MW allocation is reserved.
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