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Key Topic

Green Power Providers

In order to provide long term stability and sustainability to small-scale renewable growth in the region, TVA has created a new program that will contribute to TVA's renewable energy portfolio and encourage continued development of distributed renewable generation across the region.


TVA's Green Power Providers is the new long-term program that replaces the successful pilot project, Generation Partners, introduced in 2003 to fund small-scale renewable energy installations. The program is supported by revenues from TVA's Green Power Switch, which sells renewable energy blocks to consumers through participating TVA distributor customers. When Generation Partners projects exceeded available funding, TVA adjusted the size of eligible Generation Partners projects to help balance both initiatives. TVA has worked with local distributors and stakeholders to develop a new sustainable program that has more price certainty and longer contracts available to participants.

Key points

  • TVA's new Green Power Providers program contributes to TVA's expanding renewable energy portfolio and will help meet the clean energy goals outlined in TVA's vision and Integrated Resource Plan.
  • Green Power Providers demonstrates TVA's commitment to small-scale renewable generation and to the growth of this resource and industry in the region.
  • Among the new features of the Green Power Providers program are contract terms of 20 years with price premiums for the first 10 years.
  • Existing Generation Partners pilot participants may also qualify for a contract extension for an additional 10 years to be paid at retail prices.
  • TVA expects the new program to be available for distributors' consideration in 2012; and TVA will continue to accept new applications under the existing Generation Partners pilot through the transition.

Other information

  • TVA is committed to continuing a sustainable program that is paid for by consumers who participate in Green Power Switch, and TVA has worked with distributors and other key stakeholders to develop Green Power Providers.
  • Key features of the new Green Power Providers program include: o The maximum project size will be 50 kilowatts.
    • Eligible resources in the Green Power Providers program will be solar, wind, biomass and hydro.
    • Initial incentive payments of $1,000 are provided to participants to help offset installation costs.
    • Contract terms are being increased to a period of 20 years.
    • Eligibility is being expanded to include TVA's directly served customers.
    • Participants are paid the applicable retail rate plus a generation premium for the first 10 years of the contract. For years 11 through 20, participants are paid the applicable retail rate only.
    • Premium amounts will be reviewed and evaluated annually with plans to phase them out over time.
    • Participation will be subject to annual limits to reflect budgets, the value of renewable technologies to TVA and renewable market conditions.
  • With longer contracts and more price certainty, the program will continue to grow and promote economic growth in the region.
  • As of March 1, 2012, there are 47.5 megawatts of solar capacity operational today and another 61 megawatts in the development pipeline for a total of nearly 109 megawatts of solar generation currently operating or approved in the Tennessee Valley. Since 2000, operating solar installations in the Tennessee Valley have grown from 3 to over 860.

April 2012



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