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California: CPUC Approves PPA for Biomass

California’s Public Utility Commission (CPUC) on Thursday approved 335 megawatts of renewable power contracts that investor-owned utility PG&E signed with NextLight Renewable Power LLC and DTE Energy Co. (DTE).

While NextLight will supply energy from solar, DTE Energy plans to build a 45-megawatt biomass power plant at the site of an existing coal-fired power plant in Stockton, California.  Under the signed PPA, DTA will supply power from RPS-eligible biomass, such as wood waste.  PG&E expects to buy 315 gigawatt hours of energy a year from the facility, beginning in 2013.  The new biomass plant is expected to begin commercial operation by 2013, according to the CPUC.

California utilities must obtain 20% of their electricity from renewable sources this year – a target they are not on pace to hit.  The target rises to 33% by 2020.

An executive order from Governor Arnold Schwarzenegger directs utilities to obtain 20% of their renewable energy from in-state biomass.

More on the CPUC approval for solar and biomass PPAs.

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