Overview of Procurement Programs

Utility-Scale RFP Program

In 2013, Georgia Power solicited bids through a Request for Proposals (RFP) process and contracted for the first 50 megawatts (MW) of utility-scale solar generation in the in the Georgia Power Advanced Solar Initiative (GPASI). These four projects averaged less than 8.5¢ per kilowatt-hour (kWh) and were approved by the Georgia Public Service Commission in December 2013. In 2014, a second RFP sought the remaining 70 MW to complete the GPASI portfolio and 425 MW approved as part of the company's 2013 Integrated Resource Plan (IRP). The RFP was concluded in October 2014 and resulted in 10 projects totaling 515 MW, averaging less than 6.5¢ per kWh.

Georgia Power filed the 10 Power Purchase Agreements (PPAs) with the Georgia Public Service Commission, subsequently receiving approval and certification of the entire portfolio in December 2014.The RFP was conducted with oversight by the Accion Group, Inc., which served as the independent evaluator for the process. Although the individual PPAs have varying in-service dates, Georgia Power expects all of the selected projects to reach commercial operation by the end of 2016.

Large-Scale Solar

Georgia Power filed a Large-Scale Solar (LSS) proposal with the Public Service Commission (PSC) on June 24, 2011, to purchase up to 50 MW of solar photovoltaic capacity capped at 30 MW per project. Applicants who met the program criteria were awarded contracts on a first-come, first-served basis.

The price Georgia Power paid for the solar capacity was developed using the company's long-term avoided energy cost plus a capacity credit based on the operational characteristics of solar energy. This credit was benchmarked to market pricing obtained under Georgia Power's 2015 RFP. As of June 2015, all of the projects are operational.

Advanced Solar Initiative

Approved by the Public Service Commission in November 2012, the Advanced Solar Initiative was an innovative solar energy purchase program, primarily designed to spur economic growth within the solar community in Georgia while offering pricing that encourages more renewable development, and avoids upward rate pressure and reliability impacts to customers. Georgia Power has solicited XX MW of new utility scale projects and 190 MW of new distributed generation projects, and anticipates all projects from the ASI program will be brought online by end of 2017.

Renewable Energy Development Initiative (REDI)

As part of the 2016 Integrated Resource Plan (IRP) process, Georgia Power was approved to create a renewable program that may add up to 1,600 megawatts (MW) of new renewable generation for Georgia Power’s customers. Through the Renewable Energy Development Initiative (REDI), the Company will procure 1,200 MW of energy from renewable resources (e.g., solar, wind, biomass or biogas resources. All renewable projects selected through the REDI programs will provide generation to the Company's portfolio and provide energy savings for all Georgia Power customers.

Georgia Power will seek to procure a total 1,050 MW of utility-scale resources from renewable projects through a competitive bid process known as a Request for Proposal (RFP) at a price not to exceed Georgia Power's long-term avoided cost. Eligible projects must be 3 MW or larger and wind generation is capped at 300 MW of the 1,050 MW total.  Under REDI, the Company will conduct two separate utility scale RFPs (525 MW each), one in 2017 and another in 2019.

Also as part of the REDI program, Georgia Power was authorized to procure 100 MW of distributed generation (DG) solar resources that are sized from 1 kilowatt (kW) up to 3 MW through a DG RFP at a price not to exceed Georgia Power’s long-term avoided cost. The Company expects to issue the DG RFP in 2017. Georgia Power will also procure 50 MW of customer-sited DG projects, sized from 1 kW up to 3 MW, through an application and lottery process (if over-subscribed) at a pre-determined price not to exceed Georgia Power's long-term avoided cost.

For more information on REDI, please visit the independent evaluator's website at https://gpcredi.accionpower.com/_gpredi_1601/accionhome.asp.


REC Disclaimer: A Renewable Energy Certificate (REC), sometimes called a renewable energy credit, represents the renewable attributes of energy produced from a renewable energy facility. RECs are considered a commodity and can be sold or traded separately from the actual energy. Georgia Power purchases only the null energy output from the renewable generating facilities that have contracted to sell energy from their solar facilities through the Large Scale Solar (LSS) program and the initial (2013/2014) Advance Solar Initiative (ASI). The sole ownership of RECs belong to each generating facility, as specifically stated in each respective power purchase agreement (PPA). The original intent of these programs was to grow renewable resources in Georgia, while allowing the generating facilities to retain the benefits of the RECs. Georgia Power does not report emission reductions from the null energy purchased through PPAs that do not bundle the RECs for sale to Georgia Power.

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