|FOR IMMEDIATE RELEASE
||CONTACT: Michael Bustamante
CLEAN POWER PRODUCTION
TO GET BOOST FROM STATE FUNDS
SACRAMENTO - Governor Gray Davis today announced that 55 renewable energy projects that will add over 500 megawatts of renewable electricity to California's power market have won a biding auction to receive $162 million in state funds.
The 55 new renewable energy projects including biomass, digester gas, geothermal, landfill gas, small hydro, and wind technologies have passed the first milestone toward receiving $162 million in financial incentives from the Renewable Resources Trust Fund. All 55 winning projects have secured approval of a "Project Award Package," which contains detailed information about the project such as the financial structure, required permits, construction schedule, possible environmental impacts, and the expected electricity generation over five years.
The Renewable Resources Trust Fund, established by Assembly bill 1890 and administered by the California Energy Commission, allocates $540 million to support renewable energy development. The winning projects competed for a portion of these funds by submitting bids to receive fixed, generation-based incentives. The bids were capped at 1.5 cents per kilowatt-hour. Winning bidders were selected, starting with the lowest subsidy requested, until all of the auction funds were allocated.
When fully operational, the 55 projects will contribute nearly 3 million megawatt hours every year of clean, renewable power to the state's total electric production, enough to power more than half a million average California homes for one year. These projects represent the first new investment in renewable power development for over a decade.
Six of the 55 projects are currently generating renewable electricity. The remaining 49 projects will begin operation over the next three years. The Energy Commission estimates that over 70 percent of residential customers switching electric service providers have switched to products containing renewable energy. These projects will help to satisfy the increasing demand for renewable energy in California's restructured electricity market.
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GOVERNOR GRAY DAVIS · SACRAMENTO, CALIFORNIA 95814 · (916) 445-2871