Dive Brief:
- The Tennessee Valley Authority (TVA) is studying the value of solar and wind local generation as a source of electricity for the grid as a whole, which may herald a new power pricing structure for self-generating rate payers.
- The project, called "Distributed Generation Integrated Value," is being facilitated by the Solar Electric Power Association, TVA and other regional stakeholders and regulators. The study will look at the value of distributed generation, as well as the value of transmission and back up electricity provided by TVA to these small generators.
- About 2,000 solar installations have come online in the region in the last 15 years, as well as a few wind and heat generation facilities. Self-generation is sold back to TVA, making up less than a percent of its generation portfolio.
Dive Insight:
Rooftop solar generation makes up most of the distributed energy generation in the region, so it is first on the list for evaluation, said TVA. Currently, TVA's Solar Energy Solutions initiative is investigating the environmental impact of larger solar arrays with a view to standardizing their approval process.
"This is expected to simplify and shorten environmental review times for some smaller solar projects that participate in the Renewable Standard Offer program, where the renewable energy generated is purchased at market rates (without the subsidies provided in the past for many small solar projects)," said Duncan Mansfield, a TVA spokesman.
TVA is looking ahead to a point where distributed generation will make up a more significant proportion of electricity resources, reflecting a growing trend amongst regulators and some utilities as they make plans to modernize the electricity grid and find alternative generation resources to fossil fuel generation.
Jow Hoagland, TVA's vice president of stakeholder relations said, "What we're trying to do is make sure that we're valuing correctly both the solar generation that people sell to us as well as the back-up power and transmission services that the grid provides to them. We want to make sure that we are doing it fairly for everyone."