SDG&E to Expand Use of Biomass Energy

San Diego Gas & Electric (SDG&E) signed a supply contract with Envirepel Energy, Inc. for renewable, biomass energy that will be online by October 2007.

SDG&E also reported that it has received nearly 5,000 megawatts (MW) of renewable-energy-supply proposals in response to the utility’s most recent renewable Request for Offers (RFO) solicitation that ended May 30, 2007. Envirepel’s agreement is the result of an earlier competitive solicitation.

The nearly 5,000 MW proposed in the most recent RFO represents a mixture of renewable energy, including about 2000 MW of wind, 2,700 MW of solar, and 300 MW of geothermal, biomass and landfill gas. Several of the proposals submitted would require the addition of new transmission infrastructure to deliver energy to San Diego customers.

“Developers are signaling their willingness to build these renewable projects,” said Debra L. Reed, president and chief executive officer for SDG&E. “We are committed to providing the transmission pathway necessary to ensure renewable energy from any of the projects developed reaches San Diego.” SDG&E is more than halfway toward meeting its 2010 goal with approximately 12 percent of its future energy supply under contract to be delivered from renewable sources.

SDG&E’s contract with Envirepel will now be submitted to the CPUC for review and final approval. SDG&E’s final selection of the renewable-energy bids will be based on least-cost, best-fit procurement criteria and will be reviewed by the Procurement Review Group, comprised of California Public Utilities Commission (CPUC) staff, consumer advocates and other non-market participants, and an independent evaluator prior to being submitted to the CPUC for final approval.

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