Louisville Gas and Energy issues RFP for renewable energy
Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) issued a request for proposal this week to assess potential availability and costs for renewable energy.
It is part of their effort to regularly monitor the market to determine if there are feasible, lower cost options for energy.
“With the growing interest and declining costs associated with renewable energy we wanted to conduct a more formal review to explore the potential market availability,” David Sinclair, vice president-Energy Supply and Analysis at LGE/KU, said. “In addition to ensuring we continue to meet the energy needs of our customers in a low-cost manner, having a larger renewable energy portfolio also could help attract businesses with sustainable goals.”
RFP respondents are requested to supply a minimum of 10 megawatts and no more than 200 megawatts by Jan. 1, 2022. Further, the agreements can range from five to 20 years. However, the source must be in Kentucky or surrounding states and be delivered to LG&E and KU’s transmission system. LG&E and KU have a goal to cut the company’s carbon dioxide emissions by 70 percent from 2010 levels by 2050.
The proposals will be evaluated on cost as well as the term of the agreement, size, operational capabilities and characteristics, and its fit within the LG&E and KU’s existing generation portfolio. Any agreement would be subject to approval by the Kentucky Public Service Commission. Proposals are due by March 29, and the evaluations are expected to be completed by late May.
Louisville Gas and Electric Company and Kentucky Utilities Company are part of the PPL Corporation. They serve nearly 1.3 million customers in the region. LG&E serves 328,000 natural gas and 414,000 electric customers in Louisville and 16 surrounding counties, while KU serves 555,000 customers in 77 Kentucky counties and five counties in Virginia.
