Follow US Investment Immigration and US Life news: According to the Hartford Courant, the Connecticut Department of Energy and Environmental Protection has recently approved two clean energy projects, a move expected to accelerate the state's progress toward its renewable energy goals.
The two projects include a wind farm located in Maine and a solar power plant in Connecticut. In two years, most of the electricity generated by these projects will be transmitted to Connecticut, meeting 3.5% of the local electricity demand. The price is not only cheaper than conventional fossil fuel power plants in the same region but also lower than similar renewable energy projects. The wind farm in Maine will provide 250 megawatts of power, and the solar power plant in Connecticut will provide 20 megawatts.
Connecticut energy officials stated that the distance of over 650 kilometers between the Maine wind farm and Connecticut does present transmission challenges, but this issue is being closely monitored by the regional power grid.
Considering clean energy subsidies, the electricity price for both projects is below $0.08 per kilowatt-hour, which is surprisingly low. On average, the price of renewable electricity in Connecticut is $0.13 per kilowatt-hour, reaching as high as $0.20. The low price is due to the fact that the developers of both projects qualify for the US Federal tax credit policy, which is set to expire at the end of this year. Other factors include scale and competition. ($1 is approximately 6.12 RMB)
Connecticut Governor Dannel P. Malloy stated that renewable energy projects will bring real benefits, not only by providing clean electricity but also by improving energy reliability through a diversified portfolio, while the low price allows it to compete with electricity produced by traditional power plants.
The developers of both projects have signed long-term power supply contracts with Connecticut, and both projects are expected to be connected to the grid by the end of 2016. This approach of signing contracts directly with developers is a significant departure from Connecticut's previous practice of purchasing renewable electricity to meet its renewable energy goals. Initially, Connecticut's utility companies were required to purchase Renewable Energy Credits (RECs), but the volatile credit market created many obstacles for developers.
A new law passed by the Connecticut legislature last year established the current model, which provides more certainty for developers by using long-term contracts to set prices and subsidy levels. State officials believe that the new measures can stimulate innovation and competition among different technologies while also reducing costs.
