TVA to Purchase More Renewable Energy

The Tennessee Valley Authority (TVA) Board last week authorized the purchase of as much as 2,000 megawatts (MW) of renewable energy by 2011 as part of TVA’s plan to have 50 percent of its power supply from clean and renewable energy sources by 2020.

The Board authorized TVA’s president and CEO Tom Kilgore to approve power purchase agreements and contracts for the renewable energy. TVA may begin entering into contracts as early as June 1 with some of the renewable energy suppliers that provided the most competitive responses to a request for proposals issued in December last year. Renewable energy sources that are being considered include wind, hydro, solar and biomass.

“It is our goal to reduce TVA’s environmental footprint by increasing the renewable and clean energy resources in our generation mix,” said Kilgore. “Renewable energy and energy efficiency will be part of our clean energy portfolio that has zero or near-zero carbon emissions, which will help reduce the impacts of climate change.”

Kilgore said TVA will negotiate contracts that are competitive with forecasted electricity market prices over the term of the contract. Contract terms will be up to 20 years. TVA received more than 60 responses to its request for proposals to provide renewable energy by June 2011 and notified the responders who met the criteria and is continuing discussions with them.

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