Landfill (or Wastewater Treatment) Methane Gas Capture and Generation

Project Description

To support this project, TVA seeks to execute long-term power purchase agreements (PPAs) with the owners and operators of new landfill gas and digester gas-to-energy projects located in the TVA power service territory. To this end, five projects have met applicable criteria for operating under TVA’s Renewable Standard Offer (RSO) program. The RSO program was designed for developers of new renewable energy projects greater than 50 kW and less than or equal to 20 MW in size; and offered set prices and terms and conditions (or a “standard offer”) to promote renewable generation from qualified sources. For this project, TVA sought to execute long-term power purchase agreements to secure commitments for at least 10 MW of landfill gas and/or digester gas (from wastewater treatment facilities) capacity through the RSO program. The five active agreements have exceed this objective. The RSO program is no longer accepting new applicants, but TVA may still seek and enter into additional long-term, negotiated PPAs for new landfill gas and digester gas-to-energy projects if they meet similar criteria used under RSO, plus additional, negotiated business case justifications.

Project Implementation

Existing projects have been implemented through the RSO program, which has an application and screening process; a contractual phase; an environmental assessment and interconnection study phase; and a power generation and compliance phase. Project developers completed these requirements in the contractual (including demonstrating creditworthiness) environmental assessment and interconnection phases before the RSO contract was executed.

Each developer receives payment for their generation based on a time-of-use rate schedule that is established the date the RSO contract is signed. For projects signed after January 1, 2013, the base average price will increase at 5 percent per year for the term of the contract. The milestones developed for the project are outlined below

Milestones/DeliverablesDates*
Procurement of 6.4 MW of landfill methane gas capture 10/23/2012
Procurement of additional 4.8 MW for total of 11.2 MW of landfill methane gas capture 11/26/2013
Procurement of additional 1.88 MW for total of 13.08 MW of landfill methane gas capture 12/06/2013
Procure additional 4.5 MW for total of 17.58 MW of landfill methane gas capture  12/31/2015
Continue to seek additional participants and procure additional new landfill and/or wastewater treatment methane gas capture capacity October 2014 through December 2018
Provide to EPA the renewable energy and emissions reduction data associated with these projects for the 5-year commitment period Semi-annual reporting from 2013 through 2017

* Dates are tentative and subject to change

EPA Agreement Five-Year Budget

$16 to $30 million