Biomass Electricity Production Incentive

Green Mountain Power (GMP) offers a production incentive to farmers who own systems utilizing anaerobic digestion of agricultural products, byproducts, or wastes to generate electricity. GMP purchases electricity and renewable energy credits at 95 percent of the locational marginal price-a market-pricing approach used to manage the efficient use of the transmission system when congestion occurs on the bulk power grid-plus an additional $0.04 per kilowatt-hour. Eligible systems must be connected to the grid, although net metering is not available under this arrangement. GMP has also provided grants of approximately $175,000 to its participating farms. The company has also cost shared costs related to permitting and study costs for interconnection.

GMP sells the renewable energy credits generated under this arrangement as part of GMP Cow Power, the utility's green power program.