REC’S renewable energy, by Loren Howard
Renewable energy, i.e., solar and hydro in the case of REC, has in the past decade made substantial inroads in playing a part of the nation’s electric generation mix. Not only has the cost per kilowatt of installed capacity fallen, but wind has also shown itself to have substantial capacity factors. Capacity factor is a measure of the actual electricity produced compared to the maximum that could be produced. Here in the San Luis Valley, solar is virtually the only renewable generation in play. The elevation of at least 7,500 feet in the Valley provides great solar irradiance along with the many cloudless days provide for solar capacity factors greater than 25 percent.
REC currently has two power purchase agreements for renewable energy resources here in the Valley. Ten years ago, REC contracted with a family to provide electric for a hydro electric facility near Creede. This resource provides about one percent of the kilowatt-hours used annually by REC. In 2016, REC completed a second power purchase agreement for the electric output of the Penitente solar plant near Center. Penitente provides about three percent of REC’s annual electric requirements. REC has a wholesale power contract with Tri-State Generation and Transmission which provides the remainder of REC’s electric power requirements. Through that power contract, REC fulfills the rest of the Colorado’s Renewable Portfolio Standard (RPS) requirement that 20 percent of electricity sold come from a renewable resource.
Another supply of renewable electricity within the REC electric system is member installations of solar generation systems on their homes or businesses which are referred to as “net meter” systems. These systems provide electric energy to the individual members helping to offset the electricity purchased from REC. Electricity produced by each net meter system is credited to the member’s account. If the net meter system produces more electricity than the member uses in a month, the excess electricity is “banked” and can be used in subsequent months. Interest in these net meter systems continues to be strong with new applications happening weekly. Currently, there are 162 net meter installations representing 1,740 kilowatts of solar generation connected to REC’s electric distribution system.
So, what is next for renewable energy on REC’s system? More solar is in consideration, but one of the challenges is finding a location for another solar system. All of the output from renewable resources on the REC system must be used within the REC electric grid. Finding a location where this requirement can be met has proved to be a challenge. The next solar system will likely be smaller than the Penitente facility which has a capacity of 2,750 kilowatts. This next renewable resource will likely be in the neighborhood of 500 kilowatts.
Renewable energy resources continue to be attractive financially, but integration into the system is a challenge.