Long Island Power Authority Announces New And Expanded Clean Solar Initiative Feed-In Tariff Program

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The Long Island Power Authority (LIPA) recently announced its Clean Solar Initiative Feed-In Tariff-II (FIT-II), a feed-in tariff program for solar projects between 100 kW and 2 MW in size and located in LIPA’s service territory. FIT-II is currently open for public comment, and will be effective only upon formal approval by the LIPA Board of Trustees.

FIT-II is capped at 100 MW, and follows the first version of the Clean Solar Initiative Feed-In Tariff (FIT-I). Unlike FIT-I, projects will not be selected for participation in FIT-II on a first-come, first-served basis. Instead, all applications submitted within the application period will be evaluated; those that pass a preliminary screening process of technical and administrative review will be eligible for further consideration under a Clearing Price Auction mechanism.

Each application will include a price bid ($/kWh) for energy to be delivered from the proposed project. Those applications that pass the initial screening will be ranked in order of bid price, and the lowest-priced projects will be accepted for FIT-II participation, subject to the overall program capacity cap. The highest price bid among the accepted projects will the “Clearing Price,” and all accepted projects will be awarded 20-year power purchase agreements at the Clearing Price. In addition, projects located in the South Fork will receive a price premium of $0.07/kWh (detailed eligibility requirements for the premium are provided by LIPA).

Subject to program approvals, LIPA expects to take FIT-II applications from September 30, 2013, through January 31, 2014.  By the end of the year, LIPA is expected to issue two additional renewable energy initiatives: A 20 MW feed-in tariff and an RFP for up to 280 MW of renewable energy.

More information, including FAQs, is available on LIPA’s FIT website.