Hoosiers shoot from deep for solar, storage and wind

https://pv-magazine-usa.com/2019/10/11/hoosiers-shoot-from-deep-for-solar-storage-and-wind/

The Northern Indiana Public Service Company (NIPSCO) learns fast. In 2018, the utility published research suggesting that closing coal plants early, and replacing them with renewables and energy storage, would save customers $4.3 billion. Around the same time as the above bids, the utility announced it would be closing a majority of its coal facilities by 2023 (thus the need for the following procurement), and all coal facilities by 2028. Coal lobbyists, expectedly, have flooded the state’s legislature.

On October 1 the utility issued three separate Request for Proposals (RFP), one seeking 2.3 GW of capacity from solar power plants coupled with energy storage, a second for 300 MW of wind power, and a third for thermal/other resources. Notice of intent to bid is due by October 16, with proposals due by November 20, evaluations being completed by January 10, and agreements being signed throughout 2020.

In the Evaluation Criteria (pdf), the utility notes it will accept bids that are either power purchase agreements (PPA) or asset purchase agreements (APA). If the project is an APA, the utility expects tax benefits to be part of the project bid.

The first factor considered will be the anticipated levelized cost of electricity (LCOE) from the plant. Costs considered in this will include the asset purchase price, interconnection costs, any capital required to meet the transmission reliability benchmark, projected CAPEX requirements over the facility life, and CAPEX required to meet any pending environmental restrictions or action.

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