TVA Board Clears Long-Term Plan to Add 14 Gigawatts of Solar

The Tennessee Valley Authority board of directors on Aug. 22 approved the utility’s integrated resource plan, which calls for a continued reduction in its carbon footprint partly through the addition of up to 14 gigawatts of solar capacity by 2038.

The resource plan, unveiled in June, updates TVA’s 2015 IRP in response to continuing changes in the utility industry brought about by the glut of low-cost natural gas, falling renewable generation costs, and a growing focus on energy efficiency. TVA plans to add 5.3 gigawatts of battery storage, 2.2 gigawatts of energy efficiency, and 500 megawatts of demand response to meet the electricity needs of the seven-state region over the 20-year horizon. The IRP also expects to add over 18 gigawatts of natural gas capacity. The utility will consider the addition of up to 4.2 gigawatts of wind over the period if cost-effective.

The board also approved a $10.6 billion budget for the 2020 fiscal year, which does not raise wholesale power rates and continues to emphasize efficiency and operational performance while balancing investments, existing assets, new capabilities, and debt reduction.

Among other actions, the board approved the adoption of a long-term partnership with local power companies to better provide competitive rates and the flexibility to meet changing market needs. The board also cleared revisions to large generator interconnection procedures, as well as performance-driven compensation plans aimed to align industry standard metrics and goals.