PG&E opens bidding for 500 MW solar program in California

Northern California utility Pacific Gas & Electric today said it opened the bidding process for the first project in its five-year, 500 megawatt plan for solar energy.

PG&E said last month that it wants to own up to 250 MW of solar photovoltaic generation, in addition to 250 MW purchased from third-party developers. The program represents PG&E's first investments in renewables in a decade and takes advantage of a change in the U.S. tax credits for solar that allow utilities for the first time to receive tax incentives (see Solar takes stock after tax-credit battle).

The program targets projects 1 MW to 20 MW on the ground or rooftops within its service area.

The first bids PG&E is seeking are for a 2 MW pilot photovoltaic project to be completed this year mounted on the ground, adjacent to a PG&E substation. PG&E said applicants could be tapped for future projects.

The 500 MW program is expected to deliver 1,000 gigawatt hours of power each year, enough to supply 150,000 homes. The energy would comprise 1.3 percent of the utility's electric demand.

PG&E hasn't released details of the feed-in tariffs. The utility is awaiting approval for the program from the California Public Utilities Commission.

In February, New Jersey utility Public Service Electric & Gas, a subsidiary of the Public Service Enterprise Group, announced plans to spend $773 million on 120 megawatts of solar photovoltaics. 

Last year, the North Carolina Utilities Commission rejected the funding plan for a $50 million, 10 MW solar project by Charlotte. N.C.'s Duke Energy, leaving the project in question (see Utility commission rejects Duke Energy's funding plan for solar project).

Earlier this week, Duke got the OK from state regulators for a smart grid pilot for 200 customers. The utility plans to deploy a large storage battery and and 50-kilowatt solar panels to each home to use with smart meters that are already installed to determine how best to use the system.

Go here for details on how to submit a bid »