PHOTON International The Photovoltaic Magazine

Xcel seeks bids on 7 to 10 MW solar project in Colorado

The Public Service Company of Colorado, a subsidiary of the state‘s largest electric utility, Xcel Energy, on March 30 began soliciting bids for a PV solar power plant capable of producing 13,700 MWh per year.

	© Arizona Public Service Company (APS)
Flat plate or CPV? Both flat plate and concentrating PV developers are invited to bid for a multi-MW project in Colorado. Shown here, is an Amonix HCPV tracker before a field of BP flat panels in Arizona.

According to the Request for Proposals (RFP), the utility is inviting bids from »developers with the capability of developing, owning and operating a 7 to 10 MW DC solar PV facility.« The utility would enter into a 20-year »solar energy purchase agreement« with the winning bidder. As of mid-April, the utility has received over 20 notices of intent to bid.

Plant size will vary depending on technology and design. »It could be flat panel, it could be concentrating PV. We haven‘t yet decided,« says Xcel spokesman Mark Stutz. While the RFP explicitly states »PV or concentrating PV,« Xcel has responded to queries from developers of parabolic trough solar thermal electric systems by saying, »anyone can submit a bid in this process.«

The plant, which the utility says must be completed before the end of 2007 to take advantage of the federal 30-percent investment tax credit (ITC), will be located in south-central Colorado‘s San Luis Valley. Proposals are due by May 17, and contracts are scheduled to be signed by Sept. 1.

The solar plant is aimed at covering Xcel‘s non-distributed generation solar requirements under the state‘s Renewable Portfolio Standard through 2010. The voter-approved RPS requires that 10 percent of the electricity generated in Colorado come from renewable resources by 2015. Of that, 4 percent must come from solar energy – at least half of it distributed generation (see PI 12/2004, p. 36). Xcel needs about 18 MW by 2011 to comply, about half of it customer-sited. The utility initially supported an RPS in state legislature, but opposed the voter initiative, which included a solar-specific requirement. Nevertheless, Stutz says Xcel plans to comply fully.

On March 1, Xcel began collecting on average 35¢ per month from residential customers and 69¢ per commercial bill to fund its new residential solar rebate program. The program will award customers a total of $4.50 per W for systems up to 10 kW. According to Stutz, »several hundred« customers have expressed interest in the rebates, and some have already installed systems. Rebates have not yet been awarded, but Stutz expects these to begin to flow as early as May. Program details on systems larger than 10 kW are still being worked out. Xcel expects to pinpoint annual rebate budgets in the third quarter.

Kansas City, Missouri-based Aquila Energy, the only other investor-owned utility active in Colorado, also plans to comply with the RPS, and is currently planning to introduce a customer-sited PV program in the summer.