​Description

The wind and solar industries are maturing, and these renewable resources represented two-thirds of new U.S. generation installed in 2015. At the same time, regulatory pressure to reduce carbon from power generation is increasing, while retirement of many older fossil plants is accelerating. This article examines the fundamentals of renewable energy costs and the consideration of whether to own renewable resources or enter a Power Purchase Agreement.

Value to Electric Cooperatives

For cooperatives needing to replace older, fully-depreciated generation resources due to retirements and considering renewable resources, it is important to understand the basic fundamentals of renewable energy costs, tax impacts, and the various options for obtaining renewable energy. Equally important is how those renewable energy resources will integrate into their power supply portfolio and how to manage the inherent risks of investing in or committing to new generation.

Audience

Engineering, Operations, Finance