PROVIDENCE — The first
meeting of the Distributed Generation Contracts Board was held July 18, three
years after the committee was created. Nevertheless, it seems the renewable
energy program the committee oversees ran smoothly without the oversight.
The board was created
in 2011, along with the legislation that launched Rhode Island's innovative
distributed generation (DG) contracts program — a four-year pilot program that
offers fixed pricing for large, utility-scale wind turbines. The term “large”
is relative. Most projects are much smaller than multi-turbine wind farms, but
they are bigger than solar arrays for homes and businesses.
The committee may not
be in existence for long, however. The DG program expires at the end of 2014.
Legislation to extend the program failed in the General Assembly this year.
National Grid opposed the legislation extending the program.
The DG program is regarded as a success by the Office of Energy Resources (OER). So far, 21 solar-energy contracts and two wind turbines — North Kingstown and Coventry — have been awarded. Twelve communities have hosted projects.
Three enrollment
periods are held each year. Two have been announced so far for 2013. The next
round of contracts will be revealed in September.
Small-scale hydro
projects and anaerobic digesters also qualify for DG contracts but none have
been approved, although two are expected this year, according to the OER.
A goal of the DG
program is to reduce the cost for subsidized utility rates paid to wind and
solar developers. Solar rates in particular have dropped. The large solar
category, in particular, has seen prices drop from about 30 cents per
kilowatt-hour to 18.5.
“We’re overall seeing
a decrease in prices,” said Chris Kearns, chief of program development for the
OER.
During the DG
program’s first three years, the pricing was largely calculated by consultants.
Kearns said the OER would like the board to consider using consultants. The
board also will be asked to endorse extending the enrollment period for
renewable energy project applicants so that allotments awarded to unfinished
projects can be applied toward other renewable efforts. The extension must be
approved by the state Public Utilities Commission (PUC).
The Distributed
Generation Contracts members are Ken Payne, a creator of the DG program;
Charity Pennock of the New England Clean Energy Council; Bill Ferguson of The
Energy Council of Rhode Island (TEC-RI); Sharon Conrad Wells of the West
Elmwood Housing Development; Samuel Bradner of Peregrine (Real Estate) Group;
Thomas Teehan of National Grid; Christine West of KITE Architects; Hannah
Morini of the Renewable Energy Fund; and Marion Gold of the Office of Energy
Resources.
Gov. Lincoln Chafee
appointed the board. Chafee must also designate a chair and vice chair. The
board is scheduled to meet again in August.