Tacoma Power’s new electrofuel tariff will go into effect from 1st April, making Tacoma, Washington the perfect place for the production of green hydrogen.
The new, lower cost tariff – the nation’s first pilot rate – is designed for industrial producers of electrofuels, such as hydrolysers that produce green energy, to take Tacoma Power’s carbon-free electricity and produce hydrogen or hydrogen-rich compounds that can be used to store electricity for later use.
With the approval of this rate in December 2020, Tacoma Power became the first consumer-owned utility in the nation to offer a rate specifically designed to capture the operational and social benefit of this technology.
Under the rate schedule terms, Tacoma Power said it has the option to curtail electricity consumption during times of high market prices or other electrical system need, making it much more affordable to provide power to all customers.
In return, the customers on this new rate schedule pay a rate lower than the standard industrial rate. The new tariff will also serve as Tacoma Power’s first Demand Response rate.
“Tacoma Power is committed to engaging with partners and exploring opportunities presented by hydrogen and other electrofuels that encourage a carbon-free economy and a clean energy future,” said Clay Norris, Power Manager for Tacoma Power.
“Investing in alternative fuels brings opportunity for economic development, reduced rate pressure, and system resiliency to Tacoma.”
Rachel Fakhry, Policy Analyst for Climate and Clean Energy Programs at the Natural Resources Defense Council, commented, “Tacoma Power’s proactive and first-of-its-kind initiative will test the ability of flexible loads like green hydrogen to help integrate high levels of renewables on the electric grid by reducing renewable curtailment and improving grid reliability.”
The Renewable Hydrogen Alliance believes the tariff will attract the renewable hydrogen industry to this part of the world.
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