This could be a very good thing under consideration by the utilities commission.
In what might be a world first, the California Public Utilities Commission on Thursday proposed letting developers bid on contracts to install green energy projects. A solar company that offers to sell electricity to one of California’s three big utilities at a rate lower than its competitors would win a particular power purchase agreement.Hat-tip GreenWombat.
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An auction would essentially let the market set electricity rates for photovoltaic projects that produce between one and 20 megawatts in California and can be built within 18 months.
“This mechanism would also allow the state to pay developers a price that is sufficient to bring projects online but that does not provide surplus profits at ratepayers’ expense,” utilities commission staff wrote in its proposal. “Providing a clear and steady long-term investment signal rather than providing a pre-determined price can create a competitive market.”
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“With this program I think you’ll see a lot of photovoltaic systems on otherwise unusable land, like railroad rights-of-way or wastewater plants that have lots of roof space,” said Mr. Browning. “One other advantage of this type of policy is that it guarantees that only the people who make good business decisions are going to get these contracts.”





