This would be, by far, the largest solar PV project in the world, nearly
twice as large as PowerLight's 10 MW project in Germany, currently the
largest. This project would also be arranged into one large field, and not
split up into multiple sections as in some large projects.
SunEdison and Powered by Renewables (PBR) were the finalists in a Nevada
Power's competitive bid for construction of a large, utility-scale solar
photovoltaic (PV) project. A state Renewable Portfolio Standard (RPS)
requires that Nevada Power source a small percentage of its electricity
production from renewable sources like solar energy.
Construction is expected to begin in July 2006 with the first 4 MW
expected to be in place by year's end. The project -- so large it will
take up square miles -- will provide power to a military installation in
Clark County. The county's major military fixture is Nellis Air Force base
but Shah could not confirm at this time whether this was the military
installation slated to receive the power.
Shah could confirm they are secure on getting the thousands of solar
panels needed for the project at a time when it's increasingly difficult
to do so. With so many solar modules going abroad to Germany where high
solar incentives are driving the market, it was not an easy task. He said
they have secured module orders from more than one major module
manufacture for the first half of all modules needed.
"We've gotten the MW, we've been given assurances but we've had to be
vigilant about it," Shah said. "I think modules are a major challenge."
He said module marketing in the U.S. was fairly well disregarded in 2005
and he expects 2006 will be flat as well. Despite a federal tax credit and
some progressive state legislation, Shah says all the growth in solar PV
will be in Germany, and increasingly in Spain and South Korea where
government support for solar is on the rise.
Referring to the tight module market in the U.S., Shah added that it would
be taxing on both companies selling solar energy systems and on the
consumers and businesses seeking to buy them.
"The issues going on now will separate the people dedicated in the
industry from those who are just looking to burnish their green image.
Clearly you have to be committed," he said.
Shah wouldn't reveal the total value of this large project but suggested
other multi-MW projects tend to average somewhere around $6.5 million per
MW, or $117 million in the case of this project. There are, however, very
few multi-MW projects on a global scale to compare to this.
On the finance front, Shah added that too many investors traditionally
interested in large wind energy projects are now keen on investing in the
solar industry.
"There are tremendous dollars in the wind power industry but now a great
majority of investors are looking at the solar industry to achieve a
higher rate of return," Shah said. "There's way too much money chasing
wind projects so that investors are now competing over wind projects. A
lot of them have already raised funds and want to place them in a tax
advantaged way."
This refers to federal tax credits for renewable energy projects such as
the Production Tax Credit, which is particularly helpful for wind power
projects, and the Investment Tax Credit, which is best applied for large
solar projects.
Shah emphatically pointed out the importance of having a local company to
work with on the project. In this case, it's Powered by Renewables (PBR),
based in Las Vegas. They will primarily deal with any local issues
surrounding the construction of the facility. He called it a "big mistake"
when companies go into states and work on solar projects without a local
partner. PBR will also work with SunEdison on many other projects
throughout the state.
The project will feature Satcon's commercial scale inverters, at least
half of them being 500 kW units, with 220 kW and 100 kW units making up
the rest. The project companies will set up local training operations to
provide for the expected and regular maintenance on the inverters.