Jumpstarting Solar Power
December 19, 2007
Ken Silverstein
EnergyBiz Insider
Editor-in-Chief
Solar energy is getting a jumpstart. Energy suppliers scattered
throughout the Southwest have asked bidders to submit proposals to build a
250 megawatt solar power project.
The consortium plans on picking a winner by June 2008 so that the project
would be completed by 2012. It would be "concentrated solar power" that
focuses sunlight, usually with mirrors, to heat a fluid to high temperatures
to drive the engine -- something that proponents say can be used for
large-scale solar power generation. That differs from the more traditional
approach of photovoltaic solar power systems in which light interacts with
sheets of semiconductors to generate electricity. That solar technology is
more suitable for smaller projects.
The partners in the proposed 250 megawatt concentrated solar power project
are the Arizona Electric Power Cooperative, Salt River Project, Southern
California Public Power Authority, Tucson Electric Power and Xcel Energy.
Similar projects now exist in the Mojave Desert and in the Nevada desert.
The former solar facility, which was developed by an Israeli company in the
1980s, is the biggest such plant in the United States and it produces 160
megawatts. That latter solar farm, meanwhile, is 64-megawatts and was built
by a Spanish enterprise.
The impetus behind the proposed solar site is state mandates that force
utilities to offer a set percentage of their electric generation from
renewable energy. Arizona's standard, for example, is 15 percent by 2025.
The venture would cost $250 million to build, and cover 350 acres. Such
renewable projects enjoy widespread support in the Southwest and regulators
have baked into existing rates the cost of construction and production.
While concentrated solar power is less expensive than photovoltaic solar
power, it is still at least twice the cost of generation powered by fossil
fuels. Prices, though, will assuredly come down. The thinking is that the
creation of more projects will precipitate that decline. And, if such
technological progress is combined with federal legislation that puts a
price on carbon emissions, solar manufacturers and producers would crank up.
In any event, a key obstacle is that conventional plants are base-load
facilities that can operate all the time. Green energy plants are used as
"peaking" facilities that run typically on the hottest days. "With
intermittent renewables, we have to create the storage ourselves," says
Michael Winkler, professor at the Schatz Energy Research Center at Humboldt
State University.
But some smart people are working on that. Palo Alto-based Ausra, for
example, uses concentrated solar power technologies to gather the sun's
energy as heat. It is also developing storage systems. It says that its
plants will gather energy during daylight hours to generate power as needed
for up to 20 hours. By storing energy as heat during the day, a power plant
can continue to produce electricity during dark or cloudy periods.
High Powered Backers
Ausra has some high-powered ventured capitalists backing it. The company has
a pilot project going in Australia and talks happening here with Pacific Gas
& Electric and Florida Power & Light. Together, they want to build a 1,000
megawatt solar power plant, although they would start with smaller
demonstration facilities that could produce as little as 10 megawatts or as
much as 175 megawatts.
To be sure, skeptics say that while the land space may exist to construct
solar farms, the technology is still expensive and unreliable. Solar costs
16-25 cents a kilowatt hour. That's compared to about 9 cents a kilowatt
hour for natural gas and 5 cents a kilowatt hour for modern coal-burning
plants, as well as 5 cents a kilowatt hour for wind energy. The good news is
that solar power used to cost $1 a kilowatt hour. As new technologies are
ushered in, the hope is that prices will fall to around 6 cents a kilowatt
hour in the next decade.
Right now, solar energy provides less than 1 percent of all energy needs in
this country. If all goes according to plan, it could provide up to 2
percent of the nation's generation mix by 2025, the Bush administration
says.
Advocates have much greater aspirations, saying that solar energy will heat
up and ride the next big economic wave. Its ultimate rise will undoubtedly
be attributed to an almost perfect storm that includes rising fossil fuel
prices along with government directives that provide incentives. General
Electric, which makes solar panels now used in several states, is expecting
breakthroughs in the global market as well.
Clearly, more research is necessary. And that's why solar lobbyists and
lawmakers in states with solar potential want the current administration's
tax credits to extend beyond 2007. And the public supports it. Solar power
plants have almost no carbon dioxide, sulfur dioxide or nitrogen oxide
emissions tied to them. Because they usually produce power during peak
demand when it is most needed, they are displacing coal and natural gas
fired units in the process.
"The key is to start using concentrating solar power to boil water with
sunlight and mirrors instead of by burning coal," says Leslie Glustrom, an
activist with Clean Energy Action in Boulder. "Then, for places outside of
the Southwest, we should be shipping solar (and wind) electrons using high
voltage lines instead of trying to ship ever-pricier coal over our aging
19th century railroad system. We have more than enough sunshine in the
southwest to run the country many times over-but we have to shift our
thinking."
Growth in the sector won't be quick. But concerns over air quality along
with government mandates are giving manufacturers the certainties they need
to make expensive investments, and to ultimately prosper. That's behind the
recent wave of innovation and the proposed build out of a new solar system
in the Southwest. Supporters are enthusiastic. But, consumers need to know
if it will be cost effective and reliable
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