Boston (Platts)--29Jan2013/122 pm EST/1822 GMT
Hamilton Energy Resource Opportunities said Tuesday that it has entered into an interconnection agreement with Progress Energy Florida for a planned 70-MW solar photovoltaic facility in Hamilton County. But HERO is looking for alternatives to the avoided cost-based power purchase agreement the utility has offered. The company's managing director, Jack Levine, said in an interview that PEF's avoided costs are only around 3 cents/kWh, less than half the 8 to 10 cents/kWh payment needed to make the project economically viable. Article continues below... Request a free trial of: Megawatt Daily Megawatt Daily provides detailed coverage of power prices in major US and Canadian electricity markets, up-to-date information about solicitations and supply deals, and information about complex state and federal power regulations.
Hamilton Energy Resource Opportunities said Tuesday that it has entered into an interconnection agreement with Progress Energy Florida for a planned 70-MW solar photovoltaic facility in Hamilton County. But HERO is looking for alternatives to the avoided cost-based power purchase agreement the utility has offered. The company's managing director, Jack Levine, said in an interview that PEF's avoided costs are only around 3 cents/kWh, less than half the 8 to 10 cents/kWh payment needed to make the project economically viable.
Article continues below...
Megawatt Daily provides detailed coverage of power prices in major US and Canadian electricity markets, up-to-date information about solicitations and supply deals, and information about complex state and federal power regulations.
Levine said HERO is pursuing possible power sales deals with large commercial, industrial and military customers in Florida and neighboring states interested in securing fixed, long-term prices on all or part of the 70 MW of solar capacity HERO plans to develop. HERO also is exploring the possibility of finding a strategic partner that could take advantage of the tax-equity benefits the solar project would provide, Levine said, adding that both alternatives show promise. Levine said he was disappointed that the Florida Legislature did not approve a 2012 bill that would have permitted utilities to pay more than avoided cost-based rates for solar and other renewable power. He said while he hopes legislators will approve a pro-solar measure this year, HERO cannot base its project development plans on that hope.--Housley Carr, newsdesk@platts.com --Edited by Valarie Jackson, valarie_jackson@platts.com
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