California State is currently the new spot on the globe taking the leading renewable energy projects and other green power sources.
This is a result of a new bill, officially signed into law a week ago in the state, mandating a greater development in renewable electricity capacity within a specific period of time.
The bill, S.B. 350, requires California’s power utilities to shift towards deriving 50% of their electricity from renewables. This has prompted the state’s power generators to work very hard and quickly, since the target is to be met by 2030. This provides power companies only 15 years to develop a significant foundation for renewable energy.
California now produces around one-fourth of its 18,400GWh of electricity from renewable energy sources — which indicates that the state will require additional 4,600 GWh of capacity in a fifteen years.That will certainly mean California’s utilities will be applying for “power purchase agreements,” requesting providers of solar and wind (plus geothermal and maybe even run-of-river hydro) to submit their projects as potential suppliers to the state electricity grid.
The current law also indicates that utilities may be obliged to pay premium prices to renewable energy providers, to make sure that these projects are economically viable and able to stay in business long enough to reach the anticipated 2030 target. Such purchase agreements are a important components in justifying project finance for a wind farm or solar-panel array. And with several power-purchase agreements being given out, project developers will have an easier time acquiring loans from banks to for the construction of their facilities.
Any one of theseamounts to animportant opportunity for people with the right projects.