CPUC Rejects PG&E Purchase Agreement With Wave Power Company

Jose Michael

CPUC Rejects PG&E Purchase Agreement With Wave Power കമ്പനി

The California Public Utilities Commission (CPUC) recently rejected Pacific Gas & Electric’s (PG&E) application to approve a power purchase agreement (PPA) for a 2MW wave power project in Humboldt County, California signed between Pacific Gas & Electric and Finavera Renewables on 18 December 2007.

This was the first wave project submitted to the Commission for approval, and would have resulted in a demonstration project for Finavera’s hydraulic pump buoy system. The project was expected to deliver slightly less than 4 GWh annually with a 1 December 2012 online date.

In its resolution the CPUC found that the project is not viable; that Finavera’s bid does not compare favorably to other bids in PG&E’s 2006 solicitation; and that the contract price is not reasonable.

... the wave energy industry is in a nascent stage. Finavera’s wave technology is pre-commercial, and this proposed contract is for a demonstration project for Finavera’s hydraulic pump buoy system. Finavera deployed a prototype buoy off the Oregon coast in 2007 that was to be tested for 6 weeks. The buoy was supposed to last longer than 3 months, but sank prior to the end of the 6 week period.

—CPUC Energy Division REsolution E-4196

In response to the CPUC’s draft decision, PG&E argued that the rate was reasonable because the technology is new and the project is small. PG&E also said that ratepayers would not be affected if the project is not viable and that a failure to approve the project could negatively affect wave power development in California.

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