Appalachian Power is seeking proposals for renewable energy and battery energy storage resources that will help the company meet its future clean energy needs.
The three Requests for Proposals (RFPs) were issued today for wind, solar, battery energy storage systems and renewable energy certificates.
Under the Virginia Clean Economy Act (VCEA), Appalachian Power must meet annual escalating Renewable Energy Portfolio (RPS) requirements enroute to delivering 100 percent carbon-free energy to its Virginia customers by 2050. In addition to complying with the requirements in the VCEA, the company is soliciting bids for West Virginia-sited solar and battery energy storage resources in support of West Virginia Senate Bill 583.
“The advertised RFPs play an important role in helping us meet our clean energy commitments,” said Aaron Walker, Appalachian Power president and chief operating officer. “These projects will also support local communities by generating jobs and tax base.”
The first RFP requests bids for up to 800 megawatts (MW) of wind and/or solar resources, as
well as co-located and standalone battery energy storage systems. The company seeks to acquire completed or development stage projects through one or more purchase and sale agreements (PSAs) with a preference for projects located in Virginia or on eligible sites in West Virginia as defined in Senate Bill 583. Eligible sites in West Virginia are those previously used in electric generation, industrial, manufacturing or mining operations, including, but not limited to, brownfields, closed landfills, hazardous waste sites, former industrial sites, and former mining sites. Facilities must achieve a commercial operation date of no later than Dec. 15, 2028, and be within the PJM region and/or interconnected to the Appalachian Power distribution system. To qualify for consideration, resources that interconnect to PJM must be at least 50 MW in size for wind and solar and 10 MW in size for
standalone battery energy storage systems. Resources that interconnect to the Appalachian Power Appalachian Power distribution system must be at least 10 MW in size. The company is requesting proposals for both new and operational projects.
The second RFP requests bids for up to 300 MW of solar and/or wind resources via one or more long-term power purchase agreements (PPAs). With a PPA, the company enters into an agreement for the energy, capacity, ancillary services, and environmental attributes including renewable energy certificates (RECs) from facilities located within the PJM region and/or interconnected to the Appalachian Power distribution system. To qualify for consideration, resources must be at least 50 MW in size for wind and 5 MW in size for solar and be operational by Dec. 31, 2028.
The third RFP centers on renewable energy certificates (RECs). A REC is a market-based
instrument issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource. Under the RFP, all RECs purchased must be produced from eligible energy resources as defined in Section 56-585.5 of the Code of Virginia. Bidders may submit proposals for contract terms between five-and-30-years beginning Jan. 1, 2027; however, alternative terms will also be considered.
Businesses seeking to submit a proposal may access RFP participation criteria, required forms, and other specifics online at www.appalachianpower.com/rfp. Proposals must be submitted by July 16, 2024. Any project selected by Appalachian Power through the RFP process is conditional upon and subject to approval by the required regulatory authorities.
Appalachian Power has one million customers in Virginia, West Virginia, and Tennessee (as AEP Appalachian Power). It is part of American Electric Power, which is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions. AEP’s nearly 17,000 employees operate and maintain the nation’s largest electricity transmission system and more than 225,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.6 million customers in 11 states. AEP is also one of the nation’s largest electricity producers with approximately 29,000 megawatts of diverse generating capacity, including nearly 6,000 megawatts of renewable energy.
Appalachian Power