Hello, solar enthusiasts! I’m excited to share some groundbreaking news recently swirling in the solar industry, particularly for folks in Louisiana. If you’re part of a large business, this could be your golden opportunity to tap into the thriving solar market.
The Louisiana Public Service Commission has issued a rule that now allows large commercial and industrial customers in the state access to purchase up to an impressive 500 MW of renewable power. The Commission’s statement highlighted that companies need renewable power “in order to remain competitive.” This move speaks volumes about the potential the Commission sees in renewable and solar energy as key players in future energy supply and demand.
Currently, Louisiana boasts 600 MW of solar power, making up less than 1% of the state’s electricity. However, with this new rule, we expect to see a surge of solar companies expanding their capacity to cater to large businesses seeking to either switch to solar or increase their solar energy consumption.
For those curious about how this process will work, large electricity customers can notify their utilities of an intent to seek what’s called a “sleeved” power purchase agreement (PPA). A sleeved PPA is essentially an agreement for the capacity, energy, and renewable attributes of a renewable generator. This is bargained between the customer and the generator’s owner, and then carried out by the involved parties and the customer’s utility.
The introduction of sleeved PPAs provides an additional means for acquiring renewable energy, extending beyond the standard PPA option. In the present scenario, for instance, McDonald’s has two such PPAs to purchase solar power from projects in Louisiana.
Once the intent for a sleeved PPA is notified to a Louisiana utility, the utility must then design a rate schedule within 60 days and propose it to state regulators. These regulators have a 90-day window in which to accept or reject this rate schedule. As customers, you can anticipate credits for the accredited capacity provided by the renewable generator in the rate schedule.
The rule also lays down the ceiling for renewable capacity eligible for sleeved PPAs to 5% of the utility’s peak summer demand. So, for Entergy Louisiana alone, the state’s largest utility, a total of 500 MW of renewable capacity would be available for sleeved PPAs.
This move is a huge step forward in making solar panels for your home or solar array for home a mainstream energy source. Given the encouragement and support from the Commission and the solar companies ready to meet the surge in demand, it won’t be long before Louisiana becomes a leading player in the renewable energy sector. The full Louisiana rule details can be found in this document.
Exploring the potential of solar energy and making it accessible to a wider demographic is crucial in guiding the world towards a sustainable and self-reliant future. It’s energizing to be a part of this change and to witness the increasing commitment to renewable energy. Let’s embrace the sunlight and illuminate our homes and businesses with clean, green energy!
Original Articlehttps://pv-magazine-usa.com/2024/07/09/louisiana-allows-firms-to-buy-500-more-mw-of-renewable-power/
