Future Merchant Power Market
Merchant power markets allow for power to be sold on the open market at supply and demand rates, lowering costs for customers. Many utilities in Colorado are expected to join the Southwest Power Pool (“SPP”), a merchant power market, in Spring of 2024. This opens the door for solar and storage developers to sell electricity directly into the wholesale market.
Utility Power Purchase Agreements
A common structure for solar projects is a utility Power Purchase Agreement (“PPA”). A Utility PPA is a contract between a utility and an energy generator, where a utility buys power from a solar project and provides renewable energy to its customers. Colorado Utility companies, including Xcel and Black Hills Energy have been very active, signing power purchase agreements on a large number of projects to meet renewable energy goals described in their 2023 integrated resource plan.
Colorado Power Pathway
Xcel Energy, the largest energy provider in Colorado, is proposing a $1.7 billion investment to upgrade and expand transmission lines across the state. This program will encourage new renewable energy projects by increasing transmission line durability and reliability. This program shows the desire of Colorado Utilities to transition towards renewable energy and provides the proper infrastructure for expansion of solar projects through the state.
Types of Projects We Develop
Korsail develops a wide range of projects uniquely suited to each utility and piece of land. Our team has the knowledge and expertise to bring these projects to life. A few examples are below.
Korsail brings reliable, low-cost solar energy to rural communities across Colorado. Solar is a continuously developing, but commercially tested technology that can help reduce the utility’s monopoly on power generation and their reliance on Brown Fuel generators such as coal.
Korsail develops large-scale battery storge projects that enable us to offer readily available, consistent energy when and where it is most needed. As power demands and generation fluctuate throughout the day in Colorado, storage projects can fill the gaps in generation and keep the lights on. Korsail is at the forefront of the country’s transition to large-scale battery storage.
Korsail also develops Hybrid Solar + Storage projects. We always focus on developing projects which best serve our customers and the local community. Hybrid projects allow for more consistent delivery of energy and are better for the health and stability of the local grid.