Common use of TECHNOLOGICAL DIVERSITY Clause in Contracts

TECHNOLOGICAL DIVERSITY. PG&E added a few Offers to its short list that proposed facilities using a different technology than those already on the short list or within the utility’s supply portfolio, but which fell below the viability cutoff used in screening projects. The reason cited was to provide greater portfolio diversity. Technological diversity of the renewable power supply portfolio is not precisely a criterion or preference stated in the solicitation materials. However, within the RPS Goals evaluation criterion is a review of the extent to which an Offer will accomplish or promote a broad set of social and environmental goals, including a goal to “Increase the diversity, reliability, public health, and environmental benefits of the energy mix”.21 Some would read this language, taken from the legislative objective stated for the RPS program, as a directive to diversify the state’s energy mix away from fossil-fueled generation sources such as coal and natural gas. To others this might be interpreted as a mandate to strengthen the robustness of the energy mix by seeking to employ a broader range of technologies for renewable generation. The latter interpretation would open up the opportunity to select 21 Pacific Gas and Electric Company, “Renewables Portfolio Standard: 2009 Solicitation Protocol”, June 29, 2009, page 28 lower-valued or lower-viability projects because they offer unique, different, or not-yet-fully- commercialized technologies that may benefit from demonstration at utility scale.

TECHNOLOGICAL DIVERSITY. PG&E added a few Offers to its short list that proposed facilities using a different technology than those already on the short list or within the utility’s supply portfolio, but which fell below the viability cutoff used in screening projects. The reason cited was to provide greater portfolio diversity. Technological diversity of the renewable power supply portfolio is not precisely a criterion or preference stated in the solicitation materials. However, within the RPS Goals evaluation criterion is a review of the extent to which an Offer will accomplish or promote a broad set of social and environmental goals, including a goal to “Increase the diversity, reliability, public health, and environmental benefits of the energy mix”.21 mix”.22 Some would read this language, taken from the legislative objective stated for the RPS program, as a directive to diversify the state’s energy mix away from fossil-fueled generation sources such as coal and natural gas. To others this might be interpreted as a mandate to strengthen the robustness of the energy mix by seeking to employ a broader range of technologies for renewable generation. The latter interpretation would open up the opportunity to select 21 22 Pacific Gas and Electric Company, “Renewables Portfolio Standard: 2009 Solicitation Protocol”, June 29, 2009, page 28 lower-valued or lower-viability projects because they offer unique, different, or not-yet-fully- commercialized technologies that may benefit from demonstration at utility scale.