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As a general rule, generators cannot sell directly to retail customers without becoming a public utility regulated by the local state's public utility commission. Some states have exceptions to this general rule, such as when the sale is incidental or to a small number of customers and not to the public at large. These rules are very state-specific, however, and require additional analysis on a state-by-state basis.
Because of state utility regulation of retail sales, many megawatt (MW)-scale generators make wholesale sales, which is a sale to an entity that subsequently resells the power, such as a utility. The Federal Energy Regulatory Commission (FERC) exercises jurisdiction over most wholesale sales of power. The trick for generators is figuring out (1) which entity will buy the power, and (2) what, if any, federal regulatory approvals are needed to sell to that off-taker.
For the first issue, generators located in some parts of the country may have access to wholesale markets, such as PJM or the Midwest ISO. Such markets provide those generators the option of selling directly into a wholesale market without a bilateral contract. Another option for generators seeking to make wholesale sales is to enter into a long-term bilateral power purchase agreement. By securing a long-term contract and avoiding reliance on the daily spot market prices for power, the generator may be able to secure financing more readily. Alternatively, under the Public Utility Regulatory Policies Act of 1978, certain generators can become "Qualifying Facilities," or QFs, which enables them to force the local utility to purchase the generated power at the utility's avoided costs. Unlike a standard PPA, the avoided cost rate may fluctuate, as avoided cost rates are determined by state regulatory commissions.
On the regulatory side, any entity making wholesale sales of power must obtain federal approval to do so, unless covered by an exemption. To obtain approval, the generator must file under section 205 of the Federal Power Act and request permission from FERC. Certain classes of generators, however, may become QFs and obtain various regulatory exemptions. For example, QFs under 20 MW are exempt from section 205 of the FPA and do not need prior approval to make wholesale sales. QFs under 30 MW are not subject to most federal holding company act requirements.
Small generators are also granted some regulatory flexibility. For example, many states permit facilities below a certain capacity threshold to "net meter," which provides the opportunity to "run the meter backward" and reduce the facility's power bill. As long as at the end of the relevant billing period the generator consumes more power than it puts on the grid, FERC has held that no wholesale sale occurs, and thus such a generator does not need FERC approval. Additionally, in 2010 FERC changed its regulations and removed the need for QFs smaller than 1 MW to formally apply for such status. Assuming they otherwise meet the requirements, such facilities are now automatically granted QF status.
Needless to say, numerous options exist for selling the power from a wind or solar generator, and choosing the option that is right for your facility can be a complicated process. FERC and state commissions continue to make a concerted effort to streamline the requirements for small generators, which bodes well for developers. Still, developers must be clear early in the development process about how they plan to sell their power and what regulatory approvals they need to do so.

Attempting to create a market for a technology that requires subsidy and protection from competition through regulation, is a formula for creating economic chaos. It is the foundation of a dysfunctional economy. Despite massive direct and indirect investment in wind and solar technologies, other technologies can produce subsidy-free power at much lower cost.
The economic climate in several nations (Spain, Greece, Italy, Ireland, Portugal, Poland and even the USA) now requires massive reductions in expenditures being directed to renewable energy, mainly solar and wind. A market shake out in renewable energy is now unavoidable.
While the technology may change you cannot change the fact that the wind cannot be turned on and off and blows when it wants to and the Sun is not out half the time. These are the physical limitations that cause them to be uneconomic without Government help. I do not see that changing any time soon.
As Governments can no longer afford the scale of renewable subsidies the electricity industry will revert to the tried tested and reliable ways of producing electricity. It is just a matter of time and the realization that the great experiment was a costly one that did not work.
Malcolm
The completely stupid Swedish energy minister wants nuclear dumped and replaced with renewables and alternatives. I gladly repeat what I tell anybody who asks me: THE ENGINEERS AND MANAGERS IN SWEDEN DO NOT WANT TO HAVE ANYTHING TO DO WITH THAT GOOFY AGENDA. In no country do governments talk more about renewables than Sweden, but do less.
And Malcolm. one of the countries in Europe with the best economy is Finland, and as you know they are installing a Gen 3 reactor. There has been a lot of delay and extra expense with that reactor, and so the Finns are now making plans to install even one more. You see, being one of the best educated countries in the world, they get the energy message. The Swedish engineers and managers get it too, but they can't sing that message in thier favorite karaokee bars, and so they pretend that renewables and alternatives have a great future.
I am 100% in favor of investing in renewables and alternatives when it makes economic sense, which means that some subsidies are OK, since voters are so keen on renewables and alternatives. After all, it is better to subsidize renewables than stupid wars on the other side of the world. But what about using some common sense where this issue is concerned.
Or explode in your faces.
http://www.prosefights.org/vacation2012/vacation2012.htm#brown2
Having worked in the business for well over 40 years now there is no question that nuclear power plants are the safest of all places to work. Those that continue to spew out the "unsafe" mantra have no idea what they are talking about and obviously learned all the technical details from cartoons. As you note Garth if you could move your house onto a nuclear site you would greatly reduce your risks.
Storage of electricity would be great Fred Linn - when you figure it out let me know as it will give the nuclear industry a massive boost. Most nuclear plants run to fulfill base load capacity requirements so if you can use storage to meet the peaks then all nuclear plants can be continuously run and more will be built above base load requirements. Storage greatly lowers the already low cost of nuclear generated electricity and it certainly does not favor windmills - quite the opposite. Since you are a lifetime opponent of anything nuclear (don't get X-rays as the Cobalt 60 isotopes are made in Canadian nuclear reactors) then I would be careful what I wished for.
And to Professor Fred whose wise and witty comments are always a joy to read - of course the Finns have a strong economy - they have politicians who understand that cheap reliable electricity is the foundation of prosperity and not something to make half baked experiments with that do not work technically or economically. Cheap power attracts major industries like metals refining so building another large Generation 3 reactor makes complete sense to them and to me. It also appears to make sense to China, India, United Arab Emirates, United Kingdom, Russia, Argentina, Brazil, France and dozens of other countries even the USA who are now (at last) realizing that their fleet of incredibly reliable and efficient nuclear power plants is not going to last forever.
It should not be viewed as a coincidence that Saab - that one time manufacturer of superbly designed vehicles - has now been sold to the Chinese and are now slated to make electric cars. As beautiful as they are Saab vehicles were just far too expensive to compete - certainly in North America. Shutting down the Swedish nuclear industry and filling the streets with electric cars is a recipe for economic disaster. Unfortunately the lunatic politicians in your country believe this is possible when the battery technology is not there to support it and the electrical infrastructure cannot supply the increased load. When the Swedish public realizes they have converted their nation into a third world economy perhaps things will change - or the Finns will annex Sweden.
Swedish politicians must be getting their technical information from cartoons as well.
Malcolm
http://www.cbsnews.com/2300-205_162-10007080.html?tag=page
------------" Wes, I do have a very large nuclear plant just down the road from me. Safest place on Earth and no risk to me or my family. Malcolm"------------
Until it isn't safe anymore.