March 12, 2009
RENEWABLE ENERGY DEVELOPERS INVITED TO
BIDDERS’ CONFERENCE MARCH 25
LOS ANGELES – To boost green power as quickly and efficiently as possible in order to reach 20% of the city’s power resource mix by 2010 and 35% by 2020, the Los Angeles Department of Water and Power (LADWP) today issued a rolling request for proposals (RFP) designed to seek renewable energy proposals on a continuous basis throughout the year.
“As we seek to dramatically increase the amount of clean and green energy provided in Los Angeles, this rolling RFP will fast-track the process of procuring and developing renewable energy projects,” said David Nahai, LADWP CEO and general manager.
The rolling RFP calls for proposals for approximately 1,000 gigawatt-hours (GWh) per year of renewable energy resources such as solar, wind and geothermal power. This is enough energy to serve about 170,000 households per year, and represents nearly 4% of LADWP’s power sales.
LADWP is looking to acquire renewable energy resources through either immediate ownership of power generation facilities or through long-term power purchase agreements. Under the terms of the new RFP, green power providers can submit their proposal anytime throughout the year. LADWP will open and consider the proposals on a monthly basis, and could then begin evaluation and negotiation of a particular project right away.
“The renewable energy industry has become very fluid and dynamic,” Nahai said. “We needed to create a mechanism that will streamline and enhance our ability to take advantage of technological advancement and respond quickly to new legislative or financial opportunities as they arise.”
As stated in the RFP, LADWP will give preference to proposals that offer immediate facility ownership or to long-term purchase agreements that have an ownership option. Additionally, LADWP is targeting solar projects located in the high deserts of California, close to LADWP’s existing transmission system.
Eligible renewable resources include wind, biomass (defined as organic material), solar thermal, solar photovoltaic, geothermal, small hydroelectric (30 megawatts or less), digester and landfill gas, and biodiesel. Other technologies may include ocean wave, ocean thermal and tidal current; and fuel cells using renewable fuels.
LADWP is on track to meet its goal of 20% renewable energy by 2010 and 35% by 2020. LADWP’s renewable energy supply has increased from about 3% in 2005 to 14% projected for 2009. As a result of prior renewable energy RFPs, LADWP has many viable renewable energy projects in the pipeline at various stages of planning and construction, including the 120-megawatt Pine Tree wind farm near Mojave, which will be the largest municipally owned and operated wind power facility in the nation.
LADWP will conduct quarterly, pre-proposal conferences for bidders to receive additional information. The first conference is scheduled March 25, at 2 p.m. at LADWP’s John Ferraro Building, 111 N. Hope St., Los Angeles. The RFP can be downloaded from the LADWP website at www.ladwp.com/purchasing and is being sent directly to more than 300 vendors nationwide. Questions related to the RFP can be sent to Renewables@ladwp.com. The subject field should reference “RFP No. RFP253-09, Renewable Energy Supply.”
Subsequent pre-proposal conferences are scheduled for June 23, September 22, and Jan. 26, 2010, beginning at 2 p.m. Proposals will be accepted until March 11, 2010.
The Los Angeles Department of Water and Power, the nation’s largest municipal utility, provides reliable, low-cost water and power services to Los Angeles residents and businesses in an environmentally responsible manner. LADWP services about 1.4 million electric customers and 680,000 water customers in Los Angeles.