Saturday, July 7, 2012

Long Island Power Announces New FIT Program


The Long Island Power Authority (LIPA) recently announced a new Feed in Tariff program (FIT) intended to spark 50 mW of commercial and large scale solar projects over the next two years. The program builds off of the current Solar Pioneer and Entrepreneur Program, and new solar projects within the LIPA service area that are of 50kW or more are eligible. LIPA has committed to purchasing all of the energy generated through this program. The rate is subject to change, however once the PPA is signed it will remain at the agreed upon rate for 20 years. As of now LIPA is committing to a rate of at a fixed rate of $0.22/kW over that 20 year lifespan.

The program will begin accepting applications on July 16, 2012 at 8:00am and continue until June 30, 2014, or once LIPA has signed a total of 50mW of solar PV, whichever comes first. LIPA has not determined if additional PV capacity blocks will be added after the first 50mW is filled, but as of now there is no intention to do so. 


Read on for a complete overview of the program, application process, and links to additional information.


LIPA Feed in Tariff Program

The Long Island Power Authority (LIPA) recently announced a new Feed in Tariff program (FIT) intended to spark 50 mW of commercial and large scale solar projects over the next two years. The program builds off of the current Solar Pioneer and Entrepreneur Program, and new solar projects within the LIPA service area that are of 50kW or more are eligible. LIPA has committed to purchasing all of the energy generated through this program. The rate is subject to change, however once the PPA is signed it will remain at the agreed upon rate for 20 years. As of now LIPA is committing to a rate of at a fixed rate of $0.22/kW over that 20 year lifespan.

The program will begin accepting applications on July 16, 2012 at 8:00am and continue until June 30, 2014, or once LIPA has signed a total of 50mW of solar PV, whichever comes first. LIPA has not determined if additional PV capacity blocks will be added after the first 50mW is filled, but as of now there is no intention to do so.

Program Details
The program has three system size tiers to ensure a variety of projects are participating. Five mW of total capacity is reserved for PV systems with nameplate capacity of greater than 50kW and up to and including 150kW. The second tier reserves a block of 10mW of total capacity for PV systems with more than 150kW and up to and including 500 kW in nameplate capacity. The third tier includes 35 mW of unreserved capacity. Additional PV systems in the smaller size ranges can be enrolled as a part of this third tier. And although a single applicant can apply for multiple projects, subject to some limitations, they may not request multiple meters at the same location in order to qualify for the tiers reserved for smaller generators.  The system capacity is determined by either the sum of the 100% AC rated output of all inverters or the sum of the PTC/CEC system size multiplied by the CEC inverter efficiency.

The program will accept projects of at least 50kW, until June 30, 2014, or once LIPA has signed a total of 50mW of solar PV, whichever comes first. LIPA has not determined if additional PV capacity blocks will be added after the first 50mW is filled, but as of now there is no intention to do so. There will be a dedicated meter for each approved project. And LIPA will own all Renewable Energy Credits produced by these facilities.

LIPA has committed to a rate of $0.22/kW over that 20 year lifespan, however that is subject to change and 
there is no peak production rate.

A project can be sold or transferred to a 3rd party subject to the terms and conditions of the PPA, and the FIT rate will not change. However, in the event of a transfer of ownership, the original applicant is still fully responsible for all of the obligations and liabilities according to the PPA. There can be more than one owner per project, but only one person or entity can sign the PPA and be responsible for executing its terms. Furthermore, more than one project can exist on a given site; however, it may not be eligible for more than one meter.

At the end of the 20 year PPA, the system owner may keep, dismantle, sell or continue the systems operation subject to the terms and conditions in place at the time of expiration. If the project is rendered inoperable for longer than 12 months before the terms of the PPA expire, LIPA may terminate the PPA and cease FIT payments to the owner.

Eligibility

Projects that are rated at greater than 50kW AC and no more than 20,000 kW are eligible to participate in the FIT program. They must achieve and maintain qualifying facility (QF) status[1] within the meaning of the Public Utility Regulatory Policies Act of 1978 (PURPA) and the applicable regulations of the Federal Energy Regulatory Commission. The system must comply with the smart grid small generator interconnection procedures, and a standard PPA and an interconnection agreement must be signed between the project owner and LIPA. And finally, the owner must have and be able to prove, control over the site at the time of application. Ownership can be proven by title, leasehold rights, or other legally enforceable real property rights to the project site and any transmission rights of way. The owner needs to be able to develop, construct and operate the proposed solar facility on the site and build and operate necessary interconnection facilities. At the application stage this can be demonstrated through a legally binding option or other form of contract to acquire such real property rights. However, at the date of execution on the PPA the owner will be required to make a legally binding representation and warranty that it has all the necessary real property rights to develop, construct and operate.

The projects must use new equipment, and be installed within the LIPA service territory.

Application

Applications will be accepted starting at 8:00am on July 16, 2012. The position in the reservation queue will be determined by a couple of factors. The primary determining factor will be the date which the applicant meets all of the requirements for immediate interconnection to the LIPA system. However, for generators up to 2,000kW the determining date will be the date on which LIPA receives the applicant’s commitment to the completion of the coordinated electric system interconnection review (CESIR) as defined in the small generator interconnection procedures. For larger units, those larger than 2,000 kW nameplate capacities- the determining date will be the date on which the LIPA receives the applicant’s feasibility study agreement, or if no feasibility study is performed, the applicants systems impact study agreement as defined in the SGIP.
A project’s spot in the reservation queue is not indefinite. No limit has been established yet, however, LIPA has reserved the right to limit a project’s time as an applicant before it completes its interconnection process. LIPA has stated that once that time has been determined it will be applied to all applicants equally.
The application is done via a checkbox on the standards SGIP application. A flow chart of the SGIP process, produced by LIPA, is attached. A link to relevant forms and examples for the applications are also included below.

If the system is inverter based for 200kW or less and compliant with UL 1741 and LIPA approved for fast track, the application will require:
·         A letter of authorization by the customer
·         Standard single page application form
·         Signed copy of the standardized contract
·         Detailed single line diagram for the system identifying the manufacturer and model number of the equipment
·         A copy of the manufacturer’s data sheet for the equipment
·         A copy of the manufacturer’s verification test procedure
·         Equipment certification to UL 1741
·         Site control documentation


If the system is a distributed resource system for 25kW to 2mW of generation, the SGIP/FIT application will require:
·         A letter of authorization by the customer (if the applicant is an agent for the customer)
·         The standard page application form completed and signed
·         A signed copy of the standardized contract
·         A three line diagram for the system identifying the manufacturer and model number of the equipment
·         A copy of the manufacturer’s data sheet for the equipment
·         A copy of the manufacturer’s verification test procedure
·         A copy of the equipment certification to UL 1741
·         Site control documentation


There is a fee for the FIT application process and they made a point that it is in addition to the fee for the standard SGIP application process. However, no mention of an application fee for the SGIP was made on the website. So further inquiry into that fee is necessary. The FIT application fee, however, is waived if the project is ready to deliver energy to the grid immediately. If it is not ready for immediate generation applications for projects greater than 50kW but less than 150kW includes a fee of $500. For projects greater than 150 kW but less than 500kW the fee is $1500 per application, and for projects greater than 500kW the application fee is $5000.

Further Information
·         SGIP/FIT procedure and necessary application documents http://www.lipower.org/company/papers/interconnect-SGIP.html
·         SGIP/FIT process flowchart- attached as PDF also found at http://www.lipower.org/pdfs/cei/solar/FIT-process.pdf
·         LIPA FIT Press Release- http://www.lipower.org/newscenter/pr/2012/062812-fit.html
·         LIPA FIT FAQ http://www.lipower.org/FIT/faq.html
·         Public Utility Regulatory Policies Act (PURPA)- full text  http://uscode.house.gov/download/pls/16C46.txt
·         PURPA Wikipedia description: http://en.wikipedia.org/wiki/Public_Utility_Regulatory_Policies_Act




[1] I am assuming that the qualified facility (QF) LIPA refers to in its eligibility requirements is the Qualified Smart Grid Systems defined in the Public Utility Regulatory Policies Act 18:A-C

(18) Consideration of smart grid investment(A) In general Each State shall consider requiring that, prior to undertaking investments in nonadvanced grid technologies, an electric utility of the State demonstrate to the State that the electric utility considered an investment in a qualified smart grid system based on appropriate factors, including - (i) total costs; (ii) cost-effectiveness;(iii) improved reliability;(iv) security;(v) system performance; and(vi) societal benefit.(B) Rate recovery Each State shall consider authorizing each electric utility of the State to recover from ratepayers any capital, operating expenditure, or other costs of the electric utility relating to the deployment of a qualified smart grid system, including a reasonable rate of return on the capital expenditures of the electric utility for the deployment of the qualified smart grid system.(C) Obsolete equipment Each State shall consider authorizing any electric utility or other party of the State to deploy a qualified smart grid system to recover in a timely manner the remaining book-value costs of any equipment rendered obsolete by the deployment of the qualified smart grid system, based on the remaining depreciable life of the obsolete equipment.

1 comment:

  1. hello. first of all i would thank you for posting such an amazing blogpost. most of my queries are already explained here. also i hope lots find this post inspiring as well. keep up posting more such updates.

    Feed in Tariff Program



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