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California approves PG&E renewable bioenergy contract

The California Public Utilities Commission (CPUC) has approved a renewable energy contract for Pacific Gas and Electric Company (PG&E).

Under the 15-year contract with Mt. Poso Cogeneration Company LLC, PG&E will procure renewable bioenergy from the Mt. Poso Cogeneration facility. The proposed 44 MW biomass facility will be located in Bakersfield and will generate 325 GWh of energy per year beginning in 2012.

The CPUC-approved contract facilitates the conversion of the Mt. Poso Cogeneration plant, which currently generates electricity from coal, petroleum coke, and tire-derived fuel, to a renewable bioenergy facility powered with urban and agricultural wood waste.

Requirements

The CPUC’s Renewables Portfolio Standard (RPS) programme requires investor-owned utilities, energy service providers, and community choice aggregators operating in California to obtain 20% of their retail sales from renewable energy sources by 2010.

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