tate
funding of new renewable energy projects will soon help add over
500 megawatts of clean, renewable electricity to the growing
renewable power market in California.
A total of
55 new renewable energy projects have passed the first milestone
- approval of a "Project Award Package" by the Energy
Commission - to receive financial incentives from the Renewable
Resources Trust Fund. The fund, established by Assembly Bill
1890, is administered by the Energy Commission. When operational,
the projects will contribute nearly 3 million megawatt hours
of clean, renewable power to the state's total electric production
annually, enough to power about half a million average California
homes for one year.
These projects
represent the first fresh investment in new renewable power development
in more than a decade. Six projects have been built and are generating
renewable electricity. The remaining 49 projects will begin operation
over the next three years. The 55 new renewable energy projects
- including biomass, digester gas, geothermal landfill gas, small
hydro and wind technologies - represent the winners of an auction
conducted by the Energy Commission for a $162 million set-aside
for new renewable projects. That amount represents 30 percent
of the $540 million allocated by the California Legislature to
support renewable energy development in a deregulated electricity
market.
The successful
projects competed by submitting bids to receive fixed, generation-based
incentives. The bids were capped at 1.5 cents per kilowatt-hour.
Winning bidders were selected, starting with the lowest subsidy
requested, until all of the auction funds were allocated.
Renewable
power has long been part of California's electricity system,
making the state's electricity mix one of the "greenest"
in the nation. The recent boost provided by AB 1890 ensures that
renewable resources will continue to be developed for California's
electricity needs. Information on the projects is available from
the Commission's website at: www.energy.ca.gov/renewables.
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