Blacks Hills Energy seeks to meet Colorado renewable energy requirements with request for proposals

In an effort to meet renewable energy standards and customer demand, Black Hills Energy recently issued a request for proposals (RFP) for up to 60 megawatts of renewable energy.

The company recently received approval from the Colorado Public Utilities Commission (PUC) to add the 60 MW, which is part of the utility’s PUC-approved 2016 Electric Resource Plan and 2018-2021 Renewable Energy Standard Compliance Plan.

“Our primary goals are to identify an energy resource that is cost effective for our customers, while also generating sufficient renewable energy to comply with the Colorado RES requirements,” Julie Rodriguez, program manager for community affairs and economic development for Black Hills Energy’s Colorado electric operations, told Daily Energy Insider.

In order to meet the rest of its customers’ electricity demand and renewable energy requirements, the company has introduced a number of new natural gas facilities, wind farms and solar energy systems. In fact, the utility now gets 19 percent of its energy from renewable sources and the rest from natural gas.

Colorado’s Renewable Energy Standard requires Black Hills to obtain 30 percent of its electricity in the state from renewables by 2020. Renewables currently make up just under 20 percent.

“Developing renewable energy at a reasonable cost is important to the communities we serve and allows us to continue providing customers with the safe, reliable energy they’ve come to expect,” Rodriguez said. “We know our Southern Colorado customers value renewable energy sources – we remain committed to meeting Colorado RES requirements and to helping our Southern Colorado communities move toward their renewable energy goals.”

Acquiring approval for new renewable energy capacity, however, hasn’t always been easy.

In February 2015, The PUC denied a request by Black Hills to add a 60-MW wind farm to its portfolio, ruling that the company’s plan was not cost-effective and would be too expensive for ratepayers. After Black Hills revised its application and modified its estimates of natural gas prices, the PUC approved the plan in October 2015. Today, the Peak View Wind Project near Walsenburg, Colorado, generates 60 MWs of energy at full capacity and helps the utility to meet its renewable energy goals.

Black Hills could obtain more wind energy under its recently issued RFP. Other renewable energy resources and recycled energy, as well as greenhouse gas-neutral energy generated at a facility that uses coal mine methane or synthetic gas are also eligible.

“In its most recent renewable resource competitive solicitation, which resulted in the acquisition of the Peak View Wind Project, the company received many proposals,” Rodriquez said. “Black Hills expects the response to this RFP to be similar.  The company will rely on third-party experts, as well as Black Hills staff, to thoroughly evaluate proposals to determine the most cost-effective proposal for consideration by the PUC.”

Bids are due to Black Hills by Aug. 4, and the company expects a PUC decision on any potential resource acquisition resulting from the bids by April 2018.