U.S.-based energy company Avista Corporation has issued a request for proposals (RfP) to procure power from renewable power projects to meet capacity and energy shortfalls between 2026 and 2030 in Idaho and Washington. Proposals from both new and existing sources such as wind, solar, biomass, hydroelectric, and other clean energy sources are invited.
Avista seeks approximately 196 MW of winter capacity and 190 MW of summer capacity by 2030 for reliability. Avista seeks to fill these resource shortfalls and continually supply energy and capacity beyond 2030.
The RfP is open to parties who currently own, propose to develop, or hold rights to projects meeting Avista’s requirements for energy and capacity.
The last day to submit the bids is March 25, 2022.
For projects with 5-20 MW capacity, the bidder must pay a bid fee of $2,500, while for projects of more than 20 MW, the bid fee will be $10,000. Bid fees will be non-refundable unless a proposal is withdrawn before the submission deadline.
Projects with more than 5 MW generating capability, with preferred deliveries between 2026 and 2029, can submit their bids for this tender. Avista prefers 20-year contract terms for PPAs but will consider other PPA durations.
The company intends to secure projects through one or a combination of power purchase agreements (PPA), ownership (or future option to purchase) opportunities, or demand response contracts to meet these thresholds.
Avista is willing to consider purchasing or owning the project outright during the term of the PPA. Bidders may also propose other ownership structures, including a turn-key project to be owned by Avista or another mutually beneficial arrangement.
Bidders should have a long-term debt rating of at least Better Business Bureau (BBB) or equivalent from Standard and Poor’s, Moody’s, Fitch, Dominion Bond Rating Service, or Canadian Bond Rating Service.
Bidders must be willing to post a letter of credit from a domestic bank (or a domestic branch of a foreign bank) that has a senior debt rating of at least “A-“(or its equivalent) from Standard and Poor’s, Moody’s, Fitch, Dominion Bond Rating Service or Canadian Bond Rating Service. Credit requirements will include $45/kW of nameplate capacity for delay security during the construction period, if any, and operating security equal to $25/kW per contract year.
Bidders must be willing to provide a performance bond to be maintained during operations. The conditions for the performance bond remain the same as the letter of credit.
Bidder must also provide cash deposit with Avista of $45/kW of nameplate capacity for delay security, to be maintained during the construction period, if any, and $25/kW per contract year, to be maintained during operations. If not utilized, delay security will be returned after commercial operation day or put towards operations security.
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Arjun Joshi is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. More articles from Arjun Joshi.