Progress Energy seeks renewable energy bids

Progress Energy announced today it is soliciting proposals from solar power developers and other renewable energy suppliers to help the company meet the state's growing energy demand with alternative energy resources.

The Raleigh-based electric utility expects to contract to buy up to 1 million megawatt hours of renewable energy in 2012 — equivalent to the need of about 70,000 households. That's when the first phase of a new state law takes effect, requiring that at least 3 percent of electricity come from renewable sources and conservation.

Progress Energy will be required to derive 12.5 percent of the retail electricity it sells in North Carolina from energy alternatives by 2021. Currently most of the utility's electricity comes from coal-burning power plants and nuclear plants; less than 2 percent of electricity comes from conservation and renewables.

The company can either generate the renewable energy by developing its own facilities, or it can contract with independent suppliers.

The company is interested in reviewing such technologies as solar photovoltaic, solar thermal, wind, hydropower, geothermal, landfill methane gas, ocean current and wave energy, biomass such as animal waste and switchgrass, and hydrogen derived from renewable resources. Some of the resources, such as solar and wind power, are established in other parts of the country but not priced competitively in this state, where electricity costs are well below the national average. Tapping such resources as ocean currents and animal waste are still in an experimental stage.

Progress Energy will review the proposals for reliability and technical standards. The company will notify bidders by April 30 if it is interested in pursuing further discussions.

Duke Energy issued a similar proposal in April. The Charlotte-based utility received more than 70 initial responses, but selected several that it considers economically viable for contract negotiations.

john.murawski@newsobserver.com.