Solar power and additional renewable electricity sources will see significant development in the Tennessee Valley thanks to an authoritative body establishing an initiative to encourage their use, the Solar Home & Business Journal reports.

The Tennessee Valley Authority Renewable Standard Offer will prompt more regional renewable energy development by permitting developers to commence long-term price contracts with it, allowing for programs that will generate as much as 20 megawatts of electricity.

Designed to accommodate projects that are too large for a different TVA program, this new program allows states and utilities to acquire developers' renewable power with a set price that will encourage the prosperity of electricity generated by processes that do not generate pollution and greenhouse gases.

They also may purchase excess power generated by customers' renewable power systems. The renewable forms of power also include wind for which the TVA will pay a set price based on when during the day the electricity is available to its grid.

"This plan strikes a balance between supporting renewable energy markets, helping TVA reach its renewable energy generation targets, and keeping electricity costs affordable," said John Trawick, the authority's senior vice president for commercial operations and pricing.