Impact of Competitive Bidding on the Market Prospects for Renewable Electric Technologies

This report examines issues regarding the ability of renewable-energy-based generation projects to compete with fossil-fuel-based projects in competitive bidding solicitations. State and utility bidding results revealed that, on a relative basis, utilities contract for less renewable-energy-based capacity under competitive bidding than under past methods of qualifying facility contracting. It wasconcluded that renewables are not being chosen more often under competitive bidding because it emphasizes price and operating considerations over other attributes of renewables, such as environmental considerations, fuel diversity, and fuel price stability. Examples are given of bidding approaches used by some states and utilities that have resulted in renewables-based projects winninggeneration bids. In addition, the appendix summarizes, by state, competitive bidding activities and results for supply-side solicitations that were open to all fuels and technologies.