Utility considerations for wind energy purchase agreements. Final report
Utility purchases of electric energy from privately owned wind power stations have led to the development of a number of alternative purchase agreements. Many of these agreements involve a commitment by the involved utility to purchase energy at long-term levelized prices, or at prices other than the normal short-run avoided costs. The objective of such agreements is to encourage the private development of nonconventional energy sources. This can be beneficial to certain utilities by reducing their needs to invest in additional energy production facilities. Energy purchase agreements that provide for energy payments at prices other than short-term avoided costs can result in unresolved financial obligations if the station owner defaults and does not complete the terms of the agreement. The potential exposure to the utility can be estimated and eliminated by a variety of methods, such as equipment liens and performance bonds. This report provides an analysis of such agreements, identifies the critical parameters, and establishes boundary conditions for the parameters.
- Research Organization:
- Lynette (R.) and Associates, Inc., Redmond, WA (USA)
- OSTI ID:
- 5481776
- Report Number(s):
- EPRI-AP-4591; ON: TI86920367
- Country of Publication:
- United States
- Language:
- English
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