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Combined Heat and Power Partnership

Louisiana Renewable Energy Pilot Program

Date Last Updated11/21/2014
Policy TypeEnergy Regulation and Policy
Policy Administrator/Contact OfficeLouisiana Public Service Commission
Policy Initiation Date11/12/2010
Policy SummaryLouisiana established its Renewable Energy Pilot Program in 2010 to determine whether a renewable portfolio standard is suitable for Louisiana. The program has two major components under which CHP systems could potentially be eligible - the Research Component and the Request for Proposal (RFP) Component.

The Research Component is an opportunity for utilities to collect data on the feasibility of different renewable energy resources. Each investor-owned utility (IOU) must develop a minimum of three projects. Projects must be fully operational by the end of 2013. There are two options for the projects, and utilities may pick any combination of the two options:
  • Under the "self-build" option, utilities must develop their own renewable energy facilities. Each project is generally limited to 300 kW, but one project may be as large as 5 MW.
  • Under the standard offer tariff option, utilities can develop tariffs and associated contracts to purchase renewable energy facilities. Developers must deliver energy from new renewable resources. Utilities may not purchase more than 5 MW from any single project, and may not purchase more than 30 MW of total capacity. The tariff amount is $30/MWh plus an avoided-cost payment for a maximum of five years. After five years, the developer will continue to receive avoided-cost payments.
The RFP Component applies to both IOUs and cooperative utilities. Utilities must issue RFPs for new, long-term renewable resources that will come online between 2011 and 2014. The RFP must request a combined maximum of 350 MW. Each utility's portion of the 350 MW will be determined based on 2009 retail sales. The contract awarded through the RFP will have terms of 10 to 20 years. Award winners that supply renewable energy to IOUs must deliver at least 2 MW, and those that deliver to co-ops must deliver at least 1 MW.

In September 2013, the Louisiana Public Service Commission (PSC) issued an order under Docket No. R-28271 regarding the feasibility of implementing a mandatory RPS in the state. PSC staff did not recommend moving forward with a mandatory Louisiana RPS, but did support the continuation of some of the Renewable Energy Pilot program policies. For instance both Southwestern Electric Power Company (SWEPCO) and Entergy's standard offer tariff programs for renewables will remain in place until the separate 30 MW capacity caps have been reached, or until the PSC determines that the standards should be modified or terminated. Also, the 5 MW cap in place for standard offer tariff projects was increased to 15 MW.
CHP Eligibility RequirementsOnly waste-heat-to-power systems qualify. Eligible systems must have come online on or after January 1, 2010.
Eligible Project Size (MW)Varies by option.
Minimum Efficiency Required/
Other Performance Requirements
None specified.
Resource Website(s)

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