RFP FOLLOW-UP: Pursuing VCEA standards, Appalachian Power releases RFP for wind and solar it doesn't otherwise need

Signed into law last April, the Virginia Clean Economy Act requiring utilities to reach 100% renewable generation goals by either 2045 or 2050 is now showing its impact — with AEP subsidiary Appalachian Power releasing their first VCEA-related RFP this week.

It will be the first of three from the company this year. The current RFP calls for 300 MW of solar or wind power to be acquired in a “purchase and sale” agreement.

“The RFP issued adds 300 megawatts of clean energy to Appalachian Power’s portfolio and pushes us closer to targets established in the Virginia Clean Economy Act,” said Appalachian Power spokesperson Sarah Devine in a response to NPM. “By 2030, we expect our generation capacity to be 39% renewables, up from 18% today. This RFP will help us reach that expected capacity for 2030.”

Devine also said the RFP was purely designed to keep compliance and pace with VCEA’s requirements.

“Appalachian Power does not have an immediate need for generation resources outside of the mandates in the VCEA, but we’ve sought to add renewable resources prior to enactment of the VCEA in order to diversify our generation portfolio and to reduce long-term costs for customers, while lessening our carbon footprint,” Devine said.

Proposals are due 31 March. Projects must be at least 50 MW, connect to PJM’s grid and be operational by 15 December 2024. Solar projects must be located within Virginia, but wind projects can be sited inside the commonwealth or outside of it. Project proposals may include battery storage.

The request marks the first RFP seeking wind power in relation to meeting VCEA goals, according to Jennifer Palestrant, Chief Deputy of the state Department of Mines, Minerals and Energy, one of the agencies overseeing the law’s administration.

“There's been a lot of activity around solar as well,” Palestrant said. “(But) this is the first RFP for onshore wind that we’ve seen.”

There is a reason for that. And the VCEA could be the catalyst for more wind development in the commonwealth.

“Virginia has only one permitted onshore wind project under development. Our onshore wind resource is not nearly as high as some of our other sister states. That said, though, we are looking for some really good opportunities, especially down in the Southwest on reclaimed mine land,” Palestrant said. “And that gives us the opportunity, if there is a good wind resource there, to do onshore wind. And one of the great things about offshore wind is you can still farm or graze cattle underneath it.”

Appalachian’s second RFP this year will be for “one or more long-term power purchase agreements.” A release from the company does not specify how many MWs the company will seek. The third RFP will be for RECs only.

Palestrant called the RFPs “a very public, very positive step forward.”

“Utilities are definitely taking this seriously. They're doing a professional job,” Palestrant said. “And it's causing a lot of interesting conversations between people and companies who might never have thought about, ‘Oh, well, could my land be used for renewable energy?’ That's not a conversation that would have been had before the last 18 months or so. … Starting to get folks thinking in that direction is a huge step.”