Dec 22 2010
The new, “Renewable Auction Mechanism” (RAM), program unanimously endorsed by the California Public Utilities Commission (CPUC) is expected to fuel the growth among the small to mid-sized clean energy developers in the state of California.
The latest feed-in tariff program announced by the state makes it binding on the public-owned utility companies in California to buy power from the renewable energy producers up to 20 MW production capabilities. Proponents of the clean energy development have in total acclaimed this initiative and said that it will help the state to achieve its renewable energy goals while increasing its power storage.
The collective endorsement of the commission for RAM has initiated a pilot program to establish 1-GW power from the qualified small and mid sized renewable energy producers. The program expects the three major utility companies of the state to hold half-yearly auctions to facilitate the renewable energy companies to join and win the bids. The utility companies are required to sign agreements with the feasible low cost projects initially and there on proceed further to reach MW level to complete the round. The companies are encouraged to use typical terms and conditions in the program to minimize the dealing costs and to encourage lucidity in the transactions for easy financing.
For the purpose of checking the practicality of the project and to ensure rational pricing the program calls for development security and quicker project development. The program which is expected to come into force from coming spring requires the utility companies to register their execution plans for the ensuing 60 days.