We are getting some initial results from California’s Renewable Auction Mechanism (RAM)–a program for renewable energy projects under 20 MW in size. SCE and PG+E have both filed advice letters asking for approval of the contracts. We are still waiting to hear from SDG&E.
SCE’s is here (pdf). Some highlights:
- Winning bids were for 7 contracts, totaling 67 MW, all solar PV
- Of the 92 offers received, 91 were for solar photovoltaic projects and one was an existing small hydro facility, totaling over 1200 MW in bids. The 92 offers originated from 28 different bidders. That’s robust participation!
- Two of the winning bids are 20 MW in size, one 12 MW, one 9 MW, and three 2 MW in size.
PG&E’s is here (pdf). Some highlights:
- Winning bids were for 4 contracts totaling 63 MWs.
- PG&E received 122 offers from 52 counterparties totaling 1,470 MW.
- The contracts include one 14 MW geothermal plan, one 9 MW wind project, and two 20 MW solar PV projects.
What’s the price of these contracts? We dont know each individual one, but we do know that the weighted average of the highest executed contract price from each of the three utilities for RAM projects is $89.23/MWh (see page 44 here (pdf) for reference). (note: price is pre-Time-of-Delivery) That’s low, really low — and that’s the highest clearing price. Each individual contract price could be much lower.
Winning bidders had to have advanced interconnection efforts, and posted significant development security ($20/kW for projects < 5 MW, $60/kW for projects 5-20 MW)–efforts to ensure project viability.