Application for the Renewable Standard Offer
A developer’s application for the Renewal Standard Offer must include the following details regarding the project:
- Gross nameplate capacity (the maximum rated output of a generation source, commonly indicated by a nameplate attached by the manufacturer to the equipment)
- Expected capacity factor (the ratio of the actual output of a power plant over a period of time to its output if it had operated at full nameplate capacity the entire time)
- Type renewable technology/fuel
- Expected initial delivery date
- Proposed delivery point
- Evidence that the applicant has either title or rights of access to the proposed project site.
Applications for 2014 projects must be received by TVA before November 27, 2015.
How to Apply
The application form for the Renewable Standard Offer, application fee, and supporting documents are to be mailed to TVA. Each application will be reviewed to confirm that it is complete and that the project meets the eligibility requirements of the program. The Renewable Standard Offer application and instruction can be found at the links below.
If there is not available capacity in the program, then TVA will put project applications on a waiting list. The project developer will have the option to keep the project on the waiting list or withdrawal it from the program. TVA may refund the application fee there is not availability in the program.
If a project is approved, the applicant will have 12 months to obtain a Notice to Proceed from TVA. In some cases, it could take more than 12 months to obtain a Notice to Proceed from TVA. In those situations, TVA may extend the time period. The applicant must show that financing is in place, construction and operation permits obtained, interconnection and metering set up—in short, that the project is ready for construction. TVA may issue a Notice to Proceed if all of these and other components are in place and submitted to TVA. See Appendix C (on page 27) of the Guidelines for Renewable Standard Offer.
An interconnection agreement must be completed between the project developer and either TVA or the distributor to provide for interconnection with either TVA’s or the distributor’s electric system. Individual distributors will have their own requirements for interconnection, which may vary from distributor to distributor. Requirements for interconnection with TVA are available on TVA’s OASIS.
Applicants are responsible for all interconnection costs, including any associated studies.
All interested parties are urged to consult TVA’s procedures for compliance with the National Environmental Policy Act (NEPA) to determine the likelihood that, and the timeline in which, their project can be reviewed for environmental acceptability.
TVA will determine whether the act applies to proposed project, and initiate one of three levels of review. TVA’s procedures for environmental review are available here.
Applicants are responsible for all costs associated with the environmental review.
Costs of Application and Implementation
The application fee is dependent upon the project’s gross nameplate capacity. The application fee is nonrefundable, except for the situations described above.
Any RSO or RSO/SSI project up to 1 MW – Application fee of $1,000 + $1.00/kW
Any RSO project > 1 MW up to 20 MW – Application fee of $5,000 + $1.00/kW
Performance Assurance costs are incurred at several places in the process, including $15 per kW when the contract is issued and $25 per kW on receipt of the Notice to Proceed. The Performance Assurance changes once a project has been approved to begin operation; see below for specific amounts.
Year 1-2, Performance Assurance of $125/kW
Year 3-4, Performance Assurance of $100/kW
Year 5-20, Performance Assurance of $75/kW
Performance Assurance Example: 1 MW
Contract Issued: $15,000
Notice to Proceed: $25,000
Year 1-2: $125,000
Year 3-4: $100,000
Year 5-20: $75,000
Applicants are responsible for all interconnection costs, whether through a distributor or TVA, including system impact studies, metering, system upgrades and expansions, and operating and maintenance for facilities used in interconnection.