Avista issues all-source request for proposals for new energy and capacity resources along with Demand Response

Rhea-AI Summary

Avista (AVA) has issued an all-source request for proposals (RFP) to expand its energy capacity and implement a Demand Response program. The company aims to add up to 415 MW for winter and 425 MW for summer capacity across Washington and Idaho. The RFP aligns with Avista's 2025 Electric Integrated Resource Plan and Washington's Clean Energy Transformation Act requirements for carbon-neutral electric supply by 2030. The company is specifically seeking at least 5 MW of Demand Response capacity starting in 2026. The RFP is open to existing resource owners and developers, with proposals due by June 30, 2025. Avista will consider hybrid proposals combining clean energy, capacity, and storage solutions, but will not accept standalone Renewable Energy Certificates. The company may also bid its own repowering and self-build resources into the RFP, with an Independent Evaluator overseeing the process.

Positive

• Strategic expansion to meet growing customer energy demand
• Alignment with clean energy requirements and carbon-neutral goals
• Diversification of energy portfolio through hybrid proposals and demand response
• Transparent RFP process with Independent Evaluator oversight

Negative

• Significant capital investment required for capacity expansion
• Potential increased costs to meet clean energy requirements
• Implementation and integration challenges for new energy resources

Insights

Utilities Sector Analyst

Avista's 415-425 MW resource expansion signals strategic growth to meet increasing demand while addressing clean energy regulatory requirements in Washington.

Avista's all-source RFP represents a significant capacity expansion with the company seeking up to 415 MW for winter and 425 MW for summer across Washington and Idaho markets. This substantial procurement reflects two key business drivers: growing customer electricity demand and the need to comply with Washington's Clean Energy Transformation Act (CETA), which requires carbon-neutral electric supply by 2030.

The company is pursuing a diversified approach to resource acquisition, considering proposals for traditional generation, distributed energy resources, and hybrid solutions combining clean energy with storage capabilities. Notably, Avista is also implementing a minimum 5 MW Demand Response program starting in 2026 - a strategic move to manage peak load periods more cost-effectively without building additional generation capacity.

This procurement represents Avista's proactive resource planning following their 2025 Electric Integrated Resource Plan filed last December. The RFP structure allows for competitive third-party proposals while also enabling Avista to consider repowering existing assets or pursuing self-build options, providing flexibility in execution. The company's engagement of an Independent Evaluator indicates commitment to a transparent, unbiased selection process.

For utilities operating in states with aggressive clean energy mandates like Washington's CETA, resource adequacy remains a critical challenge. Avista's approach of pairing traditional capacity expansion with demand-side management through the DR program demonstrates sophisticated portfolio planning to maintain reliability while transitioning toward cleaner resources.

Energy solutions sought to add capacity to Avista’s portfolio

SPOKANE, Wash., May 30, 2025 (GLOBE NEWSWIRE) -- Avista, through a request for proposal (RFP), is seeking proposals from bidders to add energy and capacity including distributed energy resources, to meet projected resource needs. In addition, Avista is seeking to add a Demand Response program to its portfolio to assist in addressing peak demand.

The all-source RFP seeks resources to meet capacity needs for both Washington and Idaho up to 415 MW for winter and 425 MW for summer. As part of this RFP, Avista may bid repowering and/or self-build resources into the RFP. Avista is utilizing an Independent Evaluator for this RFP.

Avista’s 2025 Electric Integrated Resource Plan filed on December 31, 2024, reflects a need for new electric resources to meet growing customer demand for energy and clean energy requirements of the Clean Energy Transformation Act (CETA) to deliver carbon-neutral electric supply for Washington customers by 2030.

“This RFP represents Avista’s efforts to meet its growing customer demand for energy in its service territory while also seeking resources that are clean, affordable and reliable. Avista is dedicated to partnering with innovative providers to deliver resilient energy solutions that support our customers and their evolving energy use.” said Scott Kinney, Avista’s Vice President of Energy Resources & Integrated Planning. “We’re proud of our long-standing history of providing reliable power, and these additional resources will help ensure we continue to do so for years to come.”

The RFP is open to parties who currently own, propose to develop, or hold rights to resources meeting Avista’s requirements for energy and capacity. Bidders must also demonstrate an ability to meet the minimum requirements for eligibility as listed in the RFP.

Avista will consider hybrid proposals including combinations of clean energy, capacity and/or storage. Avista will not accept proposals for Renewable Energy Certificates (REC) only.

In addition, Avista seeks to acquire at least 5 MW of Demand Response (DR) beginning in 2026. DR programs provide a cost-effective solution to meeting energy demand at peak times and will be evaluated along with supply side resources.

RFP responses are due by June 30, 2025. The RFP and bid instructions are available on the Avista website at: www.myavista.com/allsourcerfp

About Avista Utilities

Avista Utilities is involved in the production, transmission and distribution of energy. We provide energy services and electricity to 422,000 customers and natural gas to 383,000 customers in a service territory that covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. Avista Utilities is an operating division of Avista Corp. (NYSE: AVA). For more information, please visit www.myavista.com.

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Contact:
Media: Jared Webley, jared.webley@avistacorp.com
Avista 24/7 Media Access (509) 495-4174

FAQ

What is the capacity target for Avista's (AVA) new RFP in 2025?

Avista is seeking up to 415 MW for winter and 425 MW for summer capacity across Washington and Idaho.

When is the deadline for Avista's (AVA) 2025 all-source RFP?

The RFP responses are due by June 30, 2025.

How much Demand Response capacity is Avista (AVA) seeking in its 2025 RFP?

Avista is seeking to acquire at least 5 MW of Demand Response capacity beginning in 2026.

What types of proposals will Avista (AVA) accept in its 2025 RFP?

Avista will accept proposals for existing resources, new developments, hybrid proposals combining clean energy, capacity and/or storage, but will not accept standalone Renewable Energy Certificates.

What is Avista's (AVA) clean energy target according to CETA?

Avista must achieve carbon-neutral electric supply for Washington customers by 2030, as required by the Clean Energy Transformation Act.