Southern Maryland Electric Cooperative (SMECO), through the National Renewables Cooperative Organization, is requesting proposals for solar electricity generation within SMECO’s service area. SMECO is seeking solar renewable energy deliveries of up to 16,000 megawatt-hours per year, or 2-10 megawatts (MW) alternating current of solar capacity. While this quantity represents the entire solicitation and SMECO expects to contract for one project, it is possible that multiple offers that are attractive and that cumulate to 10 MW may be accepted.
Like all Maryland electric utilities, SMECO is required to procure a certain amount of renewable energy or renewable energy credits. According to Austin J. Slater, Jr., SMECO president and CEO, “We built our first solar project in Hughesville, and it has been generating energy since November 2012. We had an advantage when we developed that project because we already owned the property, the property is located next to existing power lines, and we received a federal grant.” Slater added, “Outright ownership of a large-scale project may not be advantageous for SMECO at this time, but, opportunities exist because the technology is proven, solar panel prices are lower, and financing is affordable.”
This request for proposals (RFP) is intended to solicit bids for resources to meet requirements for 2015 and beyond. Responses to this solicitation may serve as the basis for contract negotiations, which if successful, would then lead to a commitment by the parties to enter into a binding contract, subject to approval by requisite regulatory agencies, including the Maryland Public Service Commission and the Rural Utilities Service, which is an agency of the US Department of Agriculture.
Only those renewable solar resources which meet the definitions contained within the Maryland renewable portfolio standard requirements for solar energy will be considered; bidders are encouraged to confirm that projects conform to these requirements before submitting a response to the RFP. Under this RFP, SMECO is not seeking renewable energy credits without the associated energy or demand side management related facilities and programs. Only commercially proven photovoltaic technologies will be considered.
Preference will be given to proposals that offer the design, construction, and sale of facilities. Proposals offering asset sale to SMECO and incorporating monetization of tax incentives may allow for competitive price advantages. SMECO will consider the purchase of existing generation facilities, ownership of facilities specifically constructed for sale to SMECO, designated portions of larger facilities or combinations thereof. Any PPA must be sourced from a unit-specific generation asset or from a group of generation assets. Proposals may include outright ownership of new or existing facilities, Power Purchase Agreements (PPA), PPA with ownership or renewal options at the end of a PPA term, or other arrangements as may be offered under the RFP.
