Sunday, August 16, 2009

The cost of building a solar powered economy

— The road to Death Valley from Highway 95 winds through Southern Nevada’s version of farm country.

From the highway, scraggly brush and shuttered bars mask the view of neon green alfalfa growing along dusty side roads. It’s easy to miss the farms entirely — until approaching a small casino that sits near the Nevada state line.

Longstreet Casino’s most recognizable feature, sitting under a windmill, is a giant stucco cow sometimes called “Big Bovine.” Inside the casino, in a large ballroom of the mostly empty building, locals heard a pitch in May for a project that could change the scene outside profoundly.

The presentation came from Jason Higgins, a representative of the Spain-based company Solar Millennium, which wants to build a massive solar plant nearby.

Solar Millennium wants to build a plant that uses water to cool steam into liquid, like a giant swamp cooler. A water-based system would be cheaper and more efficient than the kind of dry cooling many natural gas plants use in the water-deficient desert — fans inside warehouse-like structures.

Higgins, a water surveyor from Las Vegas with big oval eyes set against a square face, was hired to answer a question: Can the company secure enough water rights in the Amargosa Valley to sustain the kind of solar power plant that draws heavily from the aquifer?

“It’s confusing because there are so many opinions of water in this area,” Higgins said to a skeptical couple who demanded to know whether the solar plants would suck the region dry. “I don’t have the answers,” he said. Yet.

Solar Millennium’s more formal public meetings start this week — hearings likely to be repeated by other solar prospectors looking for sites across Southern Nevada. Dozens of developers in the region are involved in the tricky process of winning government approval and finding the capital to build vast plants to harness the sun for energy on federal lands.

Even as momentum from the highest reaches of government builds, touting solar energy as one key source to wean the country off fossil fuels, Solar Millennium and other companies know that solar comes with a set of problems similar to those any massive development project would encounter in Southern Nevada — the need for water, power lines, capital and an accepting public.

The Bureau of Land Management has carved out 670,000 acres of federal land across the West for solar power, including 32,000 acres in Amargosa Valley. (This doesn’t cover Solar Millennium’s proposed site.) The BLM is studying those zones for the purpose of giving energy companies guidelines about locations where they can cluster projects. Run transmission lines around that land and entrepreneurs can be expected to fill them with mirrors or photovoltaic arrays.

Suddenly a clean economy, and the so called promise of “green jobs” in construction and plant maintenance, begins to form.

That’s how it looks on a map.

But solar developers here and across Southern Nevada have run into logistical problems, including tower interference with Nellis Test and Training Range, a lack of suitable transmission lines, and opposition from local conservationists who don’t want to see the desert torn up for solar plants — not to mention a credit market that still has not shaken loose.

Those nitty-gritty details are playing out in such places as this 500-square-mile stretch of desert south of Beatty running roughly from U.S. Highway 95 down the California border where about 1,500 people live and where 18 companies have active applications to transform federal lands for energy generation.

Plus, there’s the issue of water.

‘Beautiful flat land’

The view from the ballroom window where Higgins made his presentation in May included the same vista that Hank and Robert Records saw in 1950 when they drove through the valley for the first time — desert framed by mountains.

“That beautiful flat land. Something should be done with it,” Hank Records exclaimed, according to a local history book. Years later, his brother Robert joked, “That’s when they should’ve put us in a straitjacket.” Instead, the brothers applied for land under the Desert Land Act.

Farming was the first hope. A railroad that ran through the area was the first to start a large-scale operation. The Tonopah and Tidewater Railroad’s ranch was supposed to demonstrate that the desolate valley could become something else, that ground water pulled up through wells could yield abundant fruits and vegetables. The idea was for homesteaders to fill the area with farms and ship their products on the railroads.

Persuading people to move to such a remote, dry location turned out to be a tough sell. Few farmers came. Those who did weren’t able to make much money farming in the valley.

“My dad always said you can make a living here, but not enough to leave,” said Shelley Kadrmas, who as town secretary runs Amargosa Valley’s affairs from an office in the back of the high school gymnasium.

In 1993 Ponderosa Dairy moved in, owned by the California-based Rockview Farms. Its accompanying lot ballooned to more than 11,000 cows and 7,000 calves. The dairy delivers wholesale organic and nonorganic milk in Nevada and California.

Manager Michael Kwiatkowski says it’s the largest agricultural operation in Southern Nevada, and the area’s biggest employer.

Most of the farmers now sell to the dairy or lease their land directly to the dairy to grow alfalfa to feed the animals.

Still, the valley has never lived up to the expectations of the people who moved there. It has expanded and contracted based on temporary work in nearby mines or the Nevada Test Site. Nearly all of the homes are portable.

“It’s temporary out here and it’s always been that way,” Kadrmas said one afternoon, as teachers at the local school laid out plastic hula dancers and Hawaiian flower-printed crepe paper for an end-of-year potluck that was dreamily given a beach luau theme.

As Michael DeLee, whose family owns part of what was the railroad’s ranch and who runs a real estate business in the area, explains: “Amargosa Valley is always waiting for its ship to come in.”

Indeed, many of the vast circles of alfalfa or the pistachios or trees bearing pomegranates are, in reality, almost water dumps. Landowners use the water so they don’t lose their water rights, which they hope can be converted into something much more valuable because in Nevada, water rights can be bought and sold separately from the land.

To retain their rights, farmers must farm once every five years. So at least every five years, land owners dutifully break out their irrigation systems to water large circular tracts — hoping that someday they’ll be approached with a better deal.

“It wasn’t my intention originally to invest in water rights, but like the owner of any property, you dream about this or that,” said Bill DeWitt, a businessman from California who owns a large stretch of on-again off-again alfalfa fields on land called Funeral Mountain Ranch.

Then DeWitt gave a nod to reality. “You have a horse and it might be a good horse but then it gets a broken leg and what are you going to do? Life is that way.”

The latest broken horse is Yucca Mountain. With its proximity, investors for years assumed the project would be a boon to the area.

DeWitt began acquiring property in 1989, two years after the federal government settled on Yucca Mountain as the site for a national nuclear waste dump.

“I thought it would be like the Hoover Dam project, with thousands of employees,” DeWitt said. Those people would need places to live and shop, he thought.

“I was wrong.”

DeWitt and others now hope solar power will succeed where other ideas failed.

Like all big water holders here, for most of the last year, DeWitt has had solar developers stop by asking to lease or buy his water rights. He’s been in close negotiations with Solar Millennium.

DeWitt said he is waiting to see what “pans out” before he makes a final deal.

Tale of the pupfish

On a July day in Ash Meadows National Wildlife Refuge, Fish and Wildlife Service biologist Cristi Baldino stood at the edge of Kings Pool at Ash Meadows. The pool was as blue as the Caribbean and so clear she had an unadulterated view to the bottom.

Baldino’s Fish and Wildlife Services cap topped a short, red bob and a cheerfully dimpled face as she explained that in cooler weather, this is the spot where she lingers, mesmerized by the rambunctious Ash Meadows Amargosa pupfish in the pool.

“Look at them playing and chasing each other,” Baldino said. “It’s a very soothing experience.”

She pointed to a yellow flower — the Ash Meadows gumplant.

The area is home to life forms that exist only here, a wet spot in the middle of the desert — at least 24 plants and animals.

Little bubbles float to the top of the spring, as gallons of underground water spurt to the surface and down the swirling streams from here. “A lot of people see the water and have the concept it’s endless, but it’s not,” Baldino said.

Hanging in the Fish and Wildlife Service’s bungalow here is a photo from decades ago showing two cars, one with a bumper sticker saying “Kill the Pupfish” and the other, “Save the Pupfish.”

One type of pupfish — the Devil’s Hole pupfish — live in a small crevice adjacent to Ash Meadows that provides a rare view of the underground aquifer in Amargosa Valley. Divers have gone down 500 feet but don’t know how much deeper the water runs because they haven’t been able to dive that far.

The Devil’s Hole pupfish breed along the ledge and because the conditions there are so rare, scientists have never been able to recreate them. Those pupfish have been a source of tension between the residents and the federal government for decades, ever since the discovery that pumping ground water nearby threatened the pupfish.

The locals don’t come a lot to see the pupfish, Baldino said, but attorneys from far away do. They visit to see the pupfish that caused a landmark Supreme Court decision in 1976 giving the National Park Service the right to stop pumping of the aquifer because it endangered the creatures.

Dry or wet system?

Solar Millennium submitted its updated plan to the BLM late last year. The company wants to build two 242-megawatt concentrated solar plants with mirrors taking up 4,000 acres on desert shrub along Farm Road, the main route through what passes for a “downtown” in Amargosa Valley.

The company’s site would be just 1 1/2 miles from the town’s community center, school, library and helipad. It would be less than 20 miles from Devil’s Hole and Ash Meadows. Solar Millennium’s application said it chose the site “due to its excellent solar radiation, access to existing electric transmission corridors, and access to skilled labor and other industrial infrastructure in nearby Las Vegas.”

The application said the company wasn’t sure whether it will build a dry system or a wet system. The difference is staggering.

A wet system would require 2,000 acre-feet of water a year for each of the two plants (an acre-foot of water is equal to roughly 325,000 gallons).

A dry system would require just 10 percent of that. But a dry system is expected to cost 5 percent to 10 percent more to build, and would produce about 20 percent less electricity on the hottest days, developers say.

“The primary potential water source is diversion of agricultural water from existing, active wells near the periphery of the proposed project,” the application states. In other words, the company is going to try to buy or lease water rights allocated to farmers in the area.

Project developer Don Reid translated it this way: “We’re not going to increase water usage in the basin,” he said. “We’re just going to switch it from growing alfalfa to growing megawatts.”

Here’s the problem: The state’s water engineer, Tracy Taylor, says the basin in the area has 24,000 acre-feet of water available each year, of which 17,600 is actively used.

The Park Service contends that if the allocated water rights are fully used every year, the aquifer couldn’t keep up with the demand, said Jennifer Beck, a hydrologist for the Park Service who has looked closely at renewable energy issues.

If solar developers, who parks officials say theoretically want to pump 50,000 acre-feet a year from the aquifer, buy or lease most of the water rights, they will severely deplete the aquifer, the park service said in a letter to BLM this year.

“We support solar but we would just want to recognize that each area has different constraints that should be considered,” Beck said. “The Amargosa desert we would suggest is an area where wet cooled is not the best technology.”

“What I would envision is greatly decreasing water levels, and there is a concern that if the water levels decline significantly in the vicinity (of) Ash Meadows and Devil’s Hole and the area in Devils Hole where the pupfish actually spawn, it wouldn’t take very much to dry that up.”

A few weeks ago, the town of Amargosa Valley asserted its own “vision statement” in a plan it wants Nye County to approve.

The valley “will strive to maintain a rural atmosphere, open spaces, green belts and agriculture, while encouraging controlled growth and safe industries in support of economic diversification,” the plan states. “Growth and development should not come at the expense of the qualities that make the valley special or diminish its natural resources.”

‘It’s an industrial process’

Brian Brown is a date farmer across the border in California and the resource advocate for the Amargosa Conservancy, a local conservation group. He has strong views about using desert land in the area for solar power.

“It’s being passed off as a very simple story of federal land that we want to lease to provide green power for America, and there’s nothing bad about that except it’s an industrial process, and if it was anything other than solar, people would be going, ‘hell no,’ ” he said while walking around his palm-tree laden farm recently.

“If it was a gas or a coal fired plant right in the middle of town, what would they say? They want to come in and sterilize the desert and build a 70,000-acre parking lot. Do we want to spend the rest of our lives staring at miles and miles of solar panels?”

National environmental groups counter such claims by arguing that large-scale solar plants will replace coal-fired power sources, curtailing the gases that contribute to global warming and threaten far more than patches of desert.

As the controversy goes on, some solar developers are not even trying secure water rights for wet cooling. Abengoa Solar recently introduced a plan for a dry-cooled system next to U.S. 95 on a strip of desert it says was paved over for an airstrip. What that company is most concerned about is securing transmission lines.

Ed Goedhart, Amargosa Valley’s conservative Republican assemblyman, believes the valley needs a boost. He split with many of his constituents by opposing the Yucca Mountain project, and then became a solar power evangelist.

“The thing I like about solar is that the sun isn’t going to call us up and say, ‘My rays are going to double in price in the next six months,” Goedhart said in an interview last spring. “You’re locked into this energy source and it isn’t going to be controlled by market manipulators or other countries. It’s a fixed cost.”

Lately, however, Goedhart has grown pessimistic about its chances in the valley.

“If you look at the risks involved, all the hurdles, the sun the moon the stars all have to line up in perfect alignment,” he said recently. “It’s so complex, so burdensome. I think it would be a miracle to get one plant built.”

Friday, August 14, 2009

UK solar company Sunstroom plans 50MW plant in Spain


Spain
Sunstroom Energy, a UK-based energy company, intends to build a 50MW Thermostroom 1 solar thermal plant, at Saucedilla, Caceres, in the Extremadura province of Spain, according to The Business News.  

The Thermostroom 1 plant, which has support from the government, will utilise a concentrating solar power technology so that parabolic mirrors can capture heat from the sun; the heat stored from this, in the form of steam, will drive a turbine to produce electricity. The governmental support this system has received will provide Sunstroom with a secure lease on the site, outlining planning and environmental and operational plants.

In terms of funding this project, Sunstroom hopes to raise more than €300 million; this funding will go towards building the plant, which will cover 271 hectares of land.

Sunstroom Energy Managing Director Iain Morrison said "we are confident that the Extremadura park will be yet another highly profitable project, generating consistent returns for our investors over its 40-year life."

The project is expected to take approximately two years to complete and, once fully operational, it will generate about €36 million in revenue per year.

United States: DOE And Treasury Actions Open The Gate For The Flow ...

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Other Information about Duane Morris LLP

Entech Solar energy hybrid has hopes for bright future

Renewable energy technology company, Entech Solar, has completed a preliminary design review and prototype of its next-generation concentrating solar product, ThermaVolt II, combining concentrating photovoltaic and thermal (CPVT) technology. The company says its product delivers four to five times the amount of energy compared to traditional photovoltaic systems and costs less to produce.

ThermaVolt II exploits Entech Solar’s optical technology by using its proprietary arched Fresnel lens to provide about 20 times the concentration of sunlight onto the solar cells, saving about 95% of the relatively expensive silicon cell material.

Typically, PV arrays can get extremely hot and this energy is often wasted. But the ThermaVolt system utilizes the sun to deliver power and heating from the same unit at a commercial scale.

“For the past 25 years, our arched Fresnel lenses have demonstrated outstanding performance in the real-world environment, and ThermaVolt II will continue to use this proven optical concentrating technology,” said Mark O’Neill, Entech Solar’s Chief Technology Officer.

The product’s unique design is applicable for both ground and roof-mount applications, and focuses on low cost, manufacturability, easy installation, compactness and high reliability. ThermaVolt products incorporate a solar tracker that helps expose the array to maximum amount of sunlight during the day.

Dr Frank W. Smith, Entech Solar’s Chief Executive Officer, said: “ThermaVolt II’s combined output of electricity and thermal energy produces four to five times the amount of energy compared to traditional photovoltaic systems. Through the net metering of electricity and the offset of natural gas, ThermaVolt II has the potential to be highly disruptive in the solar energy marketplace.”

Since March 2009, when Entech suspended manufacturing operations for its previous generation of concentrating solar systems, the company has focused on the design and development of its next-generation products.

ThermaVolt II module’s size and shape are now similar to those of a standard flat-plate PV module, allowing for easier installation and palletized shipping. By utilizing well-known, existing semiconductor manufacturing process and off-the-shelf equipment, the company is able to produce the units at a lower cost.

Entech’s next steps include building a reliable supply chain, completing the UL-certification process, and installing beta sites.

Plotting the path of renewable power lines

Power lines often generate intense opposition from environmentalists and landowners. But without new lines, the solar power plants and wind farms planned throughout California won't be able to ship their electricity to the towns and cities that need it.

So several state agencies, electrical utilities, renewable power developers and environmental groups have joined together to figure out where to put new lines, hoping to prevent public fights. The effort, called the Renewable Energy Transmission Initiative, released its latest report this week.

The report examines where transmission lines are needed most, will cost the least and will cause the least harm to the environment. It doesn't recommend exact routes, nor does it specify how many lines must be built.

Instead, it presents options, suggesting broad pathways for lines that can link planned renewable power projects to the grid. Most of the proposed lines are in the Southern California desert, while one stretches to the Oregon border.

In concept at least, two lines would run through eastern Contra Costa and Alameda counties, while another would link Tracy to the South Bay. Building all the lines would cost $15.7 billion, but not all of them would need to be built.

"It gives us a sense, based on the environmental input and the economic input, where we should be concentrating our efforts," said Jeffrey Byron, a member of the California Energy Commission, one of the state agencies involved. "We want to utilize existing wires and right-of-ways first, but we do know we're going to need new transmission lines."

Environment, economy

The initiative won't prevent all power-line battles, participants say. But it does attempt to strike a balance between environmental and economic concerns in a way that could become a model for the rest of the country. President Obama has made upgrading and expanding the country's electrical grid a key part of his energy plans.

"We're transforming the way we power the economy. That's an audacious thing to do," said Carl Zichella, regional director for the Sierra Club, who is working on the transmission initiative. "And there are some people whose point of view is limited to their backyards. I think they have a valid point of view, but they don't get a veto."

The report uses as its starting point Gov. Arnold Schwarzenegger's goal of getting 33 percent of California's electricity from renewable sources by the year 2020. It identifies places where large solar power plants, geothermal plants or wind farms have already been proposed, as well as areas where they are likely to be proposed in the future.

Together, those places could generate as much as 77,526 megawatts of electricity, more than all of California uses on a typical summer day. A megawatt is a snapshot figure, representing the amount of electricity flowing across the grid in an instant, and 1 megawatt is enough to power 750 homes.

Obstacles to transmission

The report examines possible routes for transmission lines to carry all that electricity. It also illustrates some of the obstacles. For example, Sen. Dianne Feinstein, D-Calif., has proposed creating a national monument in the Southern California desert that would overlap some of the renewable energy zones studied in the report.

If created, the Mojave Desert National Monument could block the development of 11,700 megawatts of renewable power, according to the report.

Report online: To read the Renewable Energy Transmission Initiative's findings, go to: www.energy.ca.gov/reti/documents.

E-mail David R. Baker at dbaker@sfchronicle.com.

This article appeared on page C - 1 of the San Francisco Chronicle

Plotting the path of renewable power lines

Power lines often generate intense opposition from environmentalists and landowners. But without new lines, the solar power plants and wind farms planned throughout California won't be able to ship their electricity to the towns and cities that need it.

So several state agencies, electrical utilities, renewable power developers and environmental groups have joined together to figure out where to put new lines, hoping to prevent public fights. The effort, called the Renewable Energy Transmission Initiative, released its latest report this week.

The report examines where transmission lines are needed most, will cost the least and will cause the least harm to the environment. It doesn't recommend exact routes, nor does it specify how many lines must be built.

Instead, it presents options, suggesting broad pathways for lines that can link planned renewable power projects to the grid. Most of the proposed lines are in the Southern California desert, while one stretches to the Oregon border.

In concept at least, two lines would run through eastern Contra Costa and Alameda counties, while another would link Tracy to the South Bay. Building all the lines would cost $15.7 billion, but not all of them would need to be built.

"It gives us a sense, based on the environmental input and the economic input, where we should be concentrating our efforts," said Jeffrey Byron, a member of the California Energy Commission, one of the state agencies involved. "We want to utilize existing wires and right-of-ways first, but we do know we're going to need new transmission lines."

Environment, economy

The initiative won't prevent all power-line battles, participants say. But it does attempt to strike a balance between environmental and economic concerns in a way that could become a model for the rest of the country. President Obama has made upgrading and expanding the country's electrical grid a key part of his energy plans.

"We're transforming the way we power the economy. That's an audacious thing to do," said Carl Zichella, regional director for the Sierra Club, who is working on the transmission initiative. "And there are some people whose point of view is limited to their backyards. I think they have a valid point of view, but they don't get a veto."

The report uses as its starting point Gov. Arnold Schwarzenegger's goal of getting 33 percent of California's electricity from renewable sources by the year 2020. It identifies places where large solar power plants, geothermal plants or wind farms have already been proposed, as well as areas where they are likely to be proposed in the future.

Together, those places could generate as much as 77,526 megawatts of electricity, more than all of California uses on a typical summer day. A megawatt is a snapshot figure, representing the amount of electricity flowing across the grid in an instant, and 1 megawatt is enough to power 750 homes.

Obstacles to transmission

The report examines possible routes for transmission lines to carry all that electricity. It also illustrates some of the obstacles. For example, Sen. Dianne Feinstein, D-Calif., has proposed creating a national monument in the Southern California desert that would overlap some of the renewable energy zones studied in the report.

If created, the Mojave Desert National Monument could block the development of 11,700 megawatts of renewable power, according to the report.

Report online: To read the Renewable Energy Transmission Initiative's findings, go to: www.energy.ca.gov/reti/documents.

E-mail David R. Baker at dbaker@sfchronicle.com.

This article appeared on page C - 1 of the San Francisco Chronicle

Thursday, August 13, 2009

Comment: Why a single energy market is critical to Europe's ...

Guest post by Omar Abbosh

Europe has long been in the vanguard of the world’s response to climate change, as its 20/20/20 targets demonstrate. But as we head towards December’s Copenhagen climate talks, it is clear that Europe is not only failing to meet its own targets, but that its failure to introduce a true single energy market is undermining its ambitions to lead the post-Kyoto world.

Europe must generate well over 30 per cent of its electricity from renewables to meet its 2020 goals. That is more than triple today’s levels. Judging from the investment plans of Europe’s largest energy companies, we will undershoot that target by 40 per cent.

In a perfect single energy market, renewables investment should gravitate to the most cost effective locations, where most power can be generated at the lowest cost and with the least need for ‘base load’ back up from conventional fuel sources.  These locations are where the sources are in greatest abundance. Solar power would be concentrated in the Mediterranean and wind would be turning more turbines in the UK than anywhere else.

But no such single market exists and finite funds are being drawn to less productive, more costly regions by national subsidies. The difference in local industrial policies and incentives helps to explains why, at over 22,000 MW, Germany has ten times the wind power capacity of the UK, and at 3,800 MW 30, times the solar power capacity of Italy.

We calculate that, if all Germany’s planned investments in wind power between now and 2020 were located in the UK instead, the natural availability of wind would bring down its cost by 20 per cent. If all Germany’s additional solar power was placed in sunny Spain, it would be 40 per cent more cost effective. Overall, the continent’s consumers would save €110bn by 2020. Taxpayers could also save an additional €70bn in subsidy payments - such as Germany’s feed in tariffs - which contribute to today’s distortion of the renewables market.

To reach our renewable targets more cost effectively, Europe must implement a consistent policy framework to drive renewable generation to those areas with greatest natural advantage. Options include centrally coordinated carbon contracts and feed in tariffs. However, we advocate the introduction of European Renewable Energy Certificates (RECs).

Under a European RECs system, each nation would agree to levels of electricity generation from renewables, based on the availability of the natural resource in question.  Certificates would be allocated to renewables generators, who would then sell them on an EU-wide trading platform to suppliers unable to meet their obligations. The policy would require local subsides to at least align with the volume agreements or, preferably, be abolished over time as the price of certificates gradually rises.  As a market-based approach, European RECs would be compatible with the EU’s existing Energy Trading System (ETS).

European RECS would have greatest impact if Europe built more physical interconnectors. Ireland generates only 6% of its consumption from wind, given that its lack of connection to other markets prevents would-be investors maximising their return by selling excess energy elsewhere. Interconnectors would also allow regions dependent on intermittent renewables to import conventional base load energy should the sun not shine or the wind not blow.  Already well established in Scandinavia, these physical interconnectors are urgently required in other parts of Europe.

Energy players must also do their part. To make a success of European RECs, energy providers need to acquire specialist renewables players, land and other assets in lowest cost areas to ensure they can meet their obligations. And if we are to have a network of interconnectors, utilities will have to address their exposure to intermittent renewable sources through investment in trading, forecasting and balancing capabilities.

Europe has stepped cautiously towards a single energy market. But we still have a lack of centrally coordinated incentives and infrastructures.  Without an EU-wide framework, finite funds are chasing subsidies, forcing investments to the least productive areas and raising costs for all.

Europe has rightly claimed it can maximise its global influence by acting as one. But as the US radically revises its energy policy and China commits vast resources to low carbon technologies, Europe’s inability to deliver its targets effectively through a single energy market could undermine its authority in international climate change negotiations. Only by replacing distorting national subsides with a coordinated and consistent policy can Europe achieve its renewables targets and continue to lead the climate change debate.

Omar Abbosh is Managing Director, Accenture’s Resources division, UK and Ireland.

Utilities Hatch Ambitious Plans to Own and Operate Large-scale PV ...

By Renewable Energy World - Renewable Energy World

By Justin Moresco

In years past, solar photovoltaic (PV) installations were largely done in a piecemeal fashion, planned and implemented one rooftop or ground-mounted system at a time. But as solar technology has improved and as state governments demand more renewable generation through portfolio standards, large-scale projects are becoming more common. A growing number of utilities, rather than depend on independent power producers to build these projects, have launched multi-million dollar initiatives to own and operate their own solar assets.

Charlotte, N.C.,-based Duke Energy, one of the largest power companies in the United States and serving about 4 million customers, is one of them. In May, the utility received approval from the North Carolina Utilities Commission to proceed with a $50 million plan to install 10 megawatts worth of solar PV systems in the state, enough electricity to power 1,300 homes. The initial plan was double the size, but the North Carolina Utilities Commission Public Staff, which acts as a consumer advocate, asked for a reduction out of concern that the proposal was too aggressive and expensive.

Under the current plan, the solar systems, which will be owned and operated by the utility, will be installed starting later this year on the roofs and grounds of homes, schools, office buildings, warehouses, shopping malls and industrial plants. Between 100 and 400 separate arrays will be installed - the details are still being worked out - and they will range from about 2.5 kilowatts on residential rooftops to more than 1 megawatt (MW) on open land or on the rooftops of large commercial buildings. The power will be fed into the electrical grid and participants will be paid for use of their roofs or land, based on the size of the installation and amount of electricity generated at the site.

The main driver behind the project is North Carolina's renewable portfolio standard, which requires the utility to satisfy 12.5 percent of its customers' power needs with renewables or energy efficiency by 2021. The law requires that a growing portion of that renewable goal be met with solar energy, starting at 0.02 percent of the electricity sold by 2010 and rising to 0.2 percent by 2018.

But there are other reasons behind Duke's decision to own and operate the facilities, according to Owen Smith, the utility's managing director of renewable energy strategy. "We believe distributed generation will grow in prevalence as customers make these investments on their own," Smith said. "We felt this was something we needed to get ahead of to understand the impact distributed generation would have on the grid."

No single rooftop array on its own could disrupt Duke's distribution network, but a large number concentrated in one area could lead to imbalances on a circuit, Smith said. By analyzing the data from the 10 MW project, the power company hopes to understand the limits of its electricity network and avoid potential problems. But distributed generation is also an opportunity for Duke, Smith said. With solar arrays strategically placed closer to the demand, the grid should become more robust, and the plan offers the power company a new way to interact with its customers, Smith said.

Duke isn't the only utility to see opportunity in owning and operating its own solar assets. U.S. utilities have announced plans to build more than 800 MW of solar installations that they would own and operate, according to GTM analyst Daniel Englander. California utilities, in particular, have drafted ambitious plans. Southern California Edison has unveiled an $875 million proposal to build a network of 250 MW of PV power generation that would cover 65 million square feet of rooftops in southern California. And Pacific Gas & Electric has its own plan to build 250 MW of distributed PV installations, largely focused on ground-mounted systems.

"They are choosing to own and operate the projects because they view it as less risky than buying from a third party and because they believe they can build them at lower costs," Englander said. Since utilities are regulated and have predictable revenue, they can raise financing at cheaper rates than most businesses. For multi-million dollar projects, cheap capital translates into significant cost savings.

Duke, which will finance its 10 MW project off its balance sheet, has set an average installation target price of $5 per watt. The company hasn't yet announced module providers or installers, but Smith said the projects will involve silicon-based and thin-film technologies. The former will be used for residential projects and thin-film, which is cheaper but converts less sunlight to power per square foot, will go in the ground-mounted and larger commercial rooftop installations. All the systems will be fixed - no trackers will be used - and Duke has ruled out using concentrating technology like mirrors to focus a larger swath of sunlight onto a small area. But Smith said Duke is considering using several module providers so the company can evaluate the benefits of different technologies.

The more than 800 MW of solar power plants announced so far highlights the growing willingness of utilities to own and operate their own solar assets. But this amount is still a small fraction of the country's planned power generation. U.S.-based plants totaling nearly 5 GW of electricity generating capacity were built or planned in the first four months of this year, according to the Energy Information Administration. Still, if Duke and others are successful with their plans, utilities now waiting on the sidelines should become more interested in launching their own, similar initiatives.

Reprinted with permission from Renewable Energy World

Utilities Hatch Ambitious Plans to Own and Operate Large-scale PV ...

In years past, solar photovoltaic (PV) installations were largely done in a piecemeal fashion, planned and implemented one rooftop or ground-mounted system at a time. But as solar technology has improved and as state governments demand more renewable generation through portfolio standards, large-scale projects are becoming more common. A growing number of utilities, rather than depend on independent power producers to build these projects, have launched multi-million dollar initiatives to own and operate their own solar assets.

"We believe distributed generation will grow in prevalence as customers make these investments on their own."

-- Owen Smith, Managing Director of Renewable Energy Strategy, Duke Energy

Charlotte, N.C.,-based Duke Energy, one of the largest power companies in the United States and serving about 4 million customers, is one of them. In May, the utility received approval from the North Carolina Utilities Commission to proceed with a $50 million plan to install 10 megawatts worth of solar PV systems in the state, enough electricity to power 1,300 homes. The initial plan was double the size, but the North Carolina Utilities Commission Public Staff, which acts as a consumer advocate, asked for a reduction out of concern that the proposal was too aggressive and expensive.

Under the current plan, the solar systems, which will be owned and operated by the utility, will be installed starting later this year on the roofs and grounds of homes, schools, office buildings, warehouses, shopping malls and industrial plants. Between 100 and 400 separate arrays will be installed — the details are still being worked out — and they will range from about 2.5 kilowatts on residential rooftops to more than 1 megawatt (MW) on open land or on the rooftops of large commercial buildings. The power will be fed into the electrical grid and participants will be paid for use of their roofs or land, based on the size of the installation and amount of electricity generated at the site.

The main driver behind the project is North Carolina’s renewable portfolio standard, which requires the utility to satisfy 12.5 percent of its customers’ power needs with renewables or energy efficiency by 2021. The law requires that a growing portion of that renewable goal be met with solar energy, starting at 0.02 percent of the electricity sold by 2010 and rising to 0.2 percent by 2018.

But there are other reasons behind Duke’s decision to own and operate the facilities, according to Owen Smith, the utility’s managing director of renewable energy strategy. “We believe distributed generation will grow in prevalence as customers make these investments on their own,” Smith said. “We felt this was something we needed to get ahead of to understand the impact distributed generation would have on the grid.”

No single rooftop array on its own could disrupt Duke’s distribution network, but a large number concentrated in one area could lead to imbalances on a circuit, Smith said. By analyzing the data from the 10 MW project, the power company hopes to understand the limits of its electricity network and avoid potential problems. But distributed generation is also an opportunity for Duke, Smith said. With solar arrays strategically placed closer to the demand, the grid should become more robust, and the plan offers the power company a new way to interact with its customers, Smith said.

Duke isn’t the only utility to see opportunity in owning and operating its own solar assets. U.S. utilities have announced plans to build more than 800 MW of solar installations that they would own and operate, according to GTM analyst Daniel Englander. California utilities, in particular, have drafted ambitious plans. Southern California Edison has unveiled an $875 million proposal to build a network of 250 MW of PV power generation that would cover 65 million square feet of rooftops in southern California. And Pacific Gas & Electric has its own plan to build 250 MW of distributed PV installations, largely focused on ground-mounted systems.

“They are choosing to own and operate the projects because they view it as less risky than buying from a third party and because they believe they can build them at lower costs,” Englander said. Since utilities are regulated and have predictable revenue, they can raise financing at cheaper rates than most businesses. For multi-million dollar projects, cheap capital translates into significant cost savings.

Duke, which will finance its 10 MW project off its balance sheet, has set an average installation target price of $5 per watt. The company hasn’t yet announced module providers or installers, but Smith said the projects will involve silicon-based and thin-film technologies. The former will be used for residential projects and thin-film, which is cheaper but converts less sunlight to power per square foot, will go in the ground-mounted and larger commercial rooftop installations. All the systems will be fixed — no trackers will be used — and Duke has ruled out using concentrating technology like mirrors to focus a larger swath of sunlight onto a small area. But Smith said Duke is considering using several module providers so the company can evaluate the benefits of different technologies.

The more than 800 MW of solar power plants announced so far highlights the growing willingness of utilities to own and operate their own solar assets. But this amount is still a small fraction of the country’s planned power generation. U.S.-based plants totaling nearly 5 GW of electricity generating capacity were built or planned in the first four months of this year, according to the Energy Information Administration. Still, if Duke and others are successful with their plans, utilities now waiting on the sidelines should become more interested in launching their own, similar initiatives.

Justin Moresco has been writing about sustainability and green issues since 2005, first as a correspondent in West Africa for IRINnews. He now focuses mainly on emerging clean technology and is based in the San Francisco Bay Area. Before becoming a journalist, he was a licensed civil engineer.

Wednesday, August 12, 2009

Sunstroom hits the road to fund €300M Spanish solar plant

UK-based company announces plans today to build a new 50 MW CSP plant, to be called Thermostroom 1.

Swindon, UK-based Sunstroom Energy Investments said today it is planning to build a €300 million ($425.1 million) 50 megawatt concentrated solar thermal electricity plant in Spain's Extremadura province.

Sunstroom Development Manager Reinout Das told the Cleantech Group he’s confident the company will be able to raise the funds from existing and new investors, despite the challenging economic climate.

“The funding is required as the building goes forward,” Das said. “It’s not needed from day one.”

Its newest solar thermal park, located in Saucedilla, Cáceres, is expected to cover 271 hectares (669.7 acres), producing renewable electricity in one of the world’s sunniest spots. The park would take about two years to build, and once operational could generate €36 million in annual revenue, according to Sunstroom.

No funding has been raised yet because the road show just started, with 25 meetings with cleantech-related funds and capital companies in the past week alone, mostly in London, Das said.

Sunstroom said it’s open to possibilities such as funding from private equity firms, institutions and green funds. Das thinks the company should be able to raise the funds by November or December at the latest.

Since being established in 2006, Sunstroom has developed three solar photovoltaic projects in the Spanish provinces of Navarra, La Rioja and Castilla-La Mancha, generating a total of 5.4 MW. These projects have all been funded mainly by high net-worth individuals, Das said.

In 2008, the three parks in total generated €30 million in revenue through a power purchase agreement signed with Spanish power utility Iberdrola, and offered a return on investment for its backers of 10 percent. Das expects a similar ROI for its new Extremadura plant.

“[Investors] are looking for more secure investments, and 10 percent is still pretty good,” he said.

Sunstroom also has a pipeline of projects at various development stages including solar photovoltaic, solar thermal, wind, hydroelectric and biomass.

Sunstroom’s new park, to be called Thermostroom 1, would use concentrated solar power (CSP) technology, which harnesses parabolic mirrors to capture heat from the sun. The heat is then stored in the form of steam to drive a turbine to produce electricity.

Other companies developing similar solar plants include Spanish energy giant Acciona, which has two plants under construction, and ACS Group, a large Spanish construction company (see Acciona gets long-term solar financing).

Sunstroom, which bought the Extremadura site, has already secured outline planning, environmental and operational permits, with support from local municipalities.

The company said it has also signed agreements with undisclosed technology suppliers, engineering partners, and utility companies that have experience with similar power plants, both in Spain and the United States.

Spanish law guarantees that a tariff on the project’s renewable electricity output be paid by Sunstroom’s utility partners at €0.2784 cents per kilowatt during the first 25 years of the installation, and then at 75 percent of this level for the rest of the project’s life.

Das said his company applied for the connection before the Spanish government implemented restrictions limiting the development of new projects, so the Extremadura project won’t be affected.

Spain led the global market for solar in 2008, with 2.51 gigawatts installed that year alone, according to a report from the European Photovoltaic Industry Association (see Spain leads 2008 solar market).

But last year, Spain scaled back its feed-in tariff and set a 500 MW cap on its solar incentives, which could limit demand there (see Extra solar panels in Spain driving down prices).

The Cleantech Group’s 2008 Concentrated Solar Thermal report predicted trough-based CST systems will be most prevalent until 2012 or 2013 but then could be displaced by power towers, compact linear Fresnel reflectors (CLFR) and dish-engine developers if the technology advances more quickly (see Cleantech Group picks winners and losers in concentrated solar thermal).

Earlier this month, Pasadena, Calif.-based eSolar commissioned a 5-MW facility in the California desert, marking the first solar thermal plant to use power-tower technology in the United States (see eSolar completes 5-MW power-tower solar plant as NRG waits in wings).

In 2008, Palo Alto, Calif.-based Ausra opened its first 5-MW CLFR power plant in North America, expected to power 3,500 homes (see Ausra opens U.S. solar-thermal plant).

Flowserve expands presence in solar power market

> Sixth Ras Laffan LNG train begins production Qatar DOHA, QATAR: Ras Laffan Liquefied Natural Gas Company Limited (3) has completed and commenced start-up of Train 6 at Ras Laffan Industrial City, Qatar. The project is a joint venture of Qatar Petroleum, which holds 70 percent interest, and ExxonMobil Ras Laffan (III) Limited, which holds 30 percent interest. Read More Qatar DOHA, QATAR: Ras Laffan Liquefied Natural Gas Company Limited (3) has completed and commenced start-up of Train 6 at Ras Laffan Industrial City, Qatar. The project is a joint venture of Qatar Petroleum, which holds 70 percent interest, and ExxonMobil Ras Laffan (III) Limited, which holds 30 percent interest. Read More

Power shortages threaten as Eskom puts five projects on ice

By Justin Brown Cash-strapped Eskom has put five projects, requiring more than R54-billion in capital expenditure, on ice as a result of its funding shortfall, raising the threat of future power crises.

Cornelis van der Waal, a Frost & Sullivan energy analyst, said the project halts would reduce Eskom's spending, deepen South Africa's recession, cut opportunities in employment creation, and affect suppliers of cement, steel and other commodities.

He confirmed that the cautious spending was aimed at helping Eskom focus on its priority projects.

Only three projects, Medupi, Kusile and Ingula, which together cost about R235bn, will go ahead.

On hold are the Tubetse pumped storage project in Mpumalanga, worth R19bn; Upington's 100 megawatt concentrated solar power plant, projected at between R2bn and R6bn; and the R3bn 100MW wind farm in the Northern Cape. Also affected is the R1.8bn Majuba rail venture and CIC Energy's $3bn (R24bn) Mmamabula power project in Botswana.

"Everything is on track at Medupi, Kusile and Ingula. The government is committed to supporting these projects," said Andrew Etzinger, Eskom's spokesman.

Van der Waal said the reduced expenditure could mean that South Africans might face lower power price increases in the years ahead.

Andrew Steel, the head of Fitch Ratings' energy team in Europe, said Eskom's credit rating was expected to deteriorate over the next two years before stabilising and increasing as the revenue from tariff increases and earnings from its new power stations came through.

He said that to handle its expansion, Eskom would have to reschedule its projects.

The two key risks to Eskom's credit rating were weaker-than-expected government support and the failure to achieve more cost-reflective energy tariffs.

Steel said Fitch had taken comfort from the fact that the government had been more supportive of Eskom over the past 18 months.

But Etzinger said the utility maintained that less demand from the effects of the recession was helping to keep stock levels up. "Eskom's spare capacity has risen from less than 5 percent to an average of 10 percent, compared with an optimum of between 15 percent and 20 percent."

Eskom could plug its funding shortfall, which stands at R161bn, by raising debt, increasing power tariffs, or further government loans or equity injections, he added.

The funding plan would take into consideration Eskom's financial position and its cash flows. The use of export credit agencies to fund the expansion could ease its debt level.

On the positive front, Van der Waal said Eskom could have been overspending on expanding, so a cutback would avoid a repeat of the 1980s, when too much generation capacity was available and power stations had to be shut.

"Eskom's cash flow position is an area that is getting specific and focused attention," Etzinger said.

The utility's concentrated solar power demonstration project has been put on hold because of funding constraints.

The project was planned to produce 100MW at a site in Upington in the Northern Cape at a cost of up to R6bn.

Earlier in the year, Eskom announced that it had halted the Tubetse pumped storage project in Mpumalanga, the wind farm in the Northern Cape and the Majuba rail venture.

Tuesday, August 11, 2009

Wickenby's Susie enters Iran on her round-the-world trip

Tuesday 9am

INTREPID round-the-world cyclist, Susie Wheeldon from Wickenby, is today (Tuesday) crossing the border into Iran along with Jamie Vining, the only remaining members of the SolarCycle team. The Foreign Office has recently reduced the country's travel warning from 'all but essential travel', and is now advising UK citizens to 'keep a low profile'.


Not all that easy for two Brits cycling in hijab during the hottest month of the year!


Due to time constraints on their visas, the pair have only 15 days to cross 1,800km of this mountainous country.


As they will be cycling during Ramadan, the holy month of fasting, they may also have difficulties finding food and water during the sweltering daylight hours.


It will be yet another challenge for the team who have already combatted 50+ desert sand storms, gale force winds and the bubonic plague.


Susie, Jamie and Iain Henderson, along with two support riders, were waved off three months ago from City Hall - London's most prominent solar building - by Mayor Boris Johnson, as well as sponsors and supporters, Nokia, G24 Innovations, SolarAid and members of the 'We Support Solar' petition.


Their journey took them to France and the Solar Euromed project before sailing to the north coast of Africa. Their ambitious route through Tunisia, Libya and Egypt was chosen to highlight the potential of the Sahara to provide solar energy to Europe; as proposed in the Desertec Concept. This concept has been recently supported by a consortium of business leaders including Deutsche Bank and Munich Re.


Often cycling 150km per day, not only did they experience the true heat of the deserts, but also battled Libyan visa issues, psychotic traffic and the attention of some over-friendly goat herders!


On the flipside, they were given police escorts, overwhelming hospitality and access to some of the worlds most impressive natural and man-made sites.


Jamie Vining said: ''We have had a few difficulties but have also been amazed by the generosity we have recieved. Everyone is fascinated by the journey and the kit.


"We have heard that Iran is one of the friendliest places you can cycle and so, despite the heavy mileage, are really looking forward to the next two weeks.''


The team's journey so far has been constantly relayed to followers on the SolarCycle website, courtesy of their solar panelled panniers - custom built by G24 Innovations - the Nokia XpressMusic 5800 and the Nokia N96. Their progress and Jamie's heart-rate is also being tracked in real-time using the Nokia Sports Tracker application.


The team has also been providing details of their solar jorney. In Egypt the team was able to visit the Kuraymat concentrating solar power (CSP) station. At almost a kilometre square this is the first to be built in the country and a compliment to the wind and hydro power already adopted in the area.


Sadly it was at this point that Iain had to return to the UK.

Army on track to power Fort Irwin with sunshine

Through an enhanced use lease, the Army will hand over about 14,000 acres of Fort Irwin, in the Mojave Desert, to commercial developers Clark Enterprises of Bethesda, Md., and Acciona Solar Power of Henderson, Nev. Together, the two companies form "Irwin Energy Security Partners LLC."

The proposal submitted by the partnership includes both concentrated solar thermal and photovoltaic technology, with an estimated capacity of up to 1,000 Mw, which exceeds the Army requirement. Clark-Acciona will be responsible for developing the project and for footing the bill for its construction -- estimated now at about $1.5 billion dollars. Neither the government, nor the Army, will pay for development of the project, but will instead collect rent in-kind for use of the land it leases to the developer.

Right now, the Army Corps of Engineers has chosen which company will get to participate in the EUL -- though the lease is not yet signed.

"This is the very first step in that process, we've selected a developer and we are beginning essentially a negotiation process and a due diligence with that developer," said Thomas M. Kretzschmar, senior program manager, U.S. Army Corps of Engineers. He said before the actual EUL can be signed, developmental, environmental, regulatory issues must be dealt with.

For the Army, the development of a 500 Mw or greater power plant on Fort Irwin means the installation -- which uses an estimated 35 Mw at peak usage -- will have power even when the civilian power grid, or the sun, goes offline.

"This project is for energy security," said Dr. Kevin T. Geiss, program director for energy security in the Office of the Assistant Secretary of the Army for Installations and Environment. "Whether we have that the first day the electrons start flowing or not, is yet to be seen. But at the end of the day, once we complete the proposed project here, there would certainly be a mechanism to maintain the flow of electricity even when the sun goes down."

The 500 Mw facility will be built in phases, with a project end date expected around 2022. But Phase 1A of the project, with a completion of around 2014, is expected to provide enough power to sustain Fort Irwin.

Additionally, the Army will benefit from the development of the facility because the developer will pay rent on the land, and will pay "in-kind," as opposed to cash. This allows the Army to use the payment immediately, with rent being paid in the form of services that can be used for operations and maintenance items for which there is no funding.

For the Clark-Acciona team, the land the Army is offering as part of the EUL is ideal for manufacturing renewable energy and selling it to the civilian grid.

"There is an excellent solar resource in the Mojave desert," Kretzschmar said.

In addition to location, there's water available to develop solar-thermal power, and also the availability of nearby high-power transmission lines so the developer can sell power to the utility company.

The developer has proposed a facility that can deliver 1,000 Mw of power. For comparison, a Department of the Interior Web site says the Hoover Dam has a capacity of 2,080 Mw -- just over double what Clark-Acciona has proposed. Fort Irwin will use only a fraction of that at peak usage.

"Anything more than that would be sold off base," Kretzschmar said. "And there's a ready market for their electricity off post."

For full details for IWNE click here.

Renewable Energy Plans Taking Shape in China and India

China and India have proven resistant to international pressure to adopt emissions targets. But the two giant countries, together representing a third of the world’s population, also aren’t totally ignoring their problems. A series of recent announcements shows that both are casting about for the most cost-effective way to develop new energy.

For India, that may be the power of sunlight. The country has just settled on a plan to build 20 gigawatts of solar capacity by 2020, which would make it one of the world’s most active markets for solar companies. After hitting the 20GW target, India’s government intends to build another 180GW by 2050, for a total of 200GW.

China is also planning on massive solar deployments, but appears to be concentrating more on its domestic wind industry at the moment. The country just started construction on what it calls its “Three Gorges in the Air”, a reference to Three Gorges Dam, the world’s largest hydropower facility.

There have already been some inconsistencies in the announcements about these plans — China, for instance, touted the beginning of its wind farm twice, perhaps hoping to get more credit for the same efforts. And in some ways both countries’ plans are still more noise than substance; neither has put enough renewable energy incentives in place to make clean technology more attractive than coal, which both countries predominantly rely upon.

Problems that have already clipped the heels of Western countries also await. China already has a significant amount of wind power installed, but can’t use all of it because it lacks enough transmission infrastructure. Both China and India are physically expansive, and it may not be a simple task to transmit power from the barren regions that are sunniest and windiest to population centers like Delhi and Shanghai.

But both China and India also look more likely to stick to their targets than other countries, if only because their energy demands are rising so quickly. India alone may triple or quadruple its needs over the next two decades, according to various analysts, including the International Energy Agency. Even 20GW of solar power will be only a small fraction of overall demand.

And that’s why announcements about renewable energy development will likely keep coming out of these two countries. They need the power anyway, and adopting renewables gives the appearance of action — even if it’s not enough, in the grand scheme of things, to make much of a difference.

Tags:

Chris Morrison, a reporter on energy, renewables and climate change, is the former lead cleantech writer for VentureBeat.Email Chris Morrison or follow him on Twitter

Xcel selects green power

Xcel Energy on Monday proposed adding nearly 1,000 megawatts of solar and wind power to its energy portfolio by 2015.

That is equal to a medium-sized coal-burning plant and enough energy to power 750,000 homes.

The utility filed its plan with the Public Utilities Commission.

Under state law, Xcel must generate 20 percent of its power from renewable sources by 2020. It currently generates 10 percent of its electricity from renewables.

Xcel issued a call for projects and received 113 bids offering a total of 21,150 megawatts, according to the filing.

"We analyzed all the bids and selected a group that we believe meet our future needs," said Joe Fuen tes, an Xcel spokesman.

The selected projects are still confidential pending PUC approval, Fuentes said. The commission has 45 days to comment.

Xcel chose projects that would provide:

• 700 megawatts of wind and a solar photovoltaic generating capacity.

• 280 megawatts of concentrating solar technology, which uses mirrors to focus the sun's heat to create steam to turn turbines and can store heat in fluids.

Last year, the utility also added about 170 megawatts of wind power, part of Xcel's long-range plan to add renewable power.

The renewable resources will be backed up by 900 megawatts of existing natural-gas turbines, the filing said.

In March, Xcel said forecasts showed a "significant reduction in demand" for electricity and cut its projected 2015 energy need by 6 percent to about 6,400 megawatts.

In a PUC filing, however, the company said that would not reduce its plans for adding renewable energy sources.

The proposed renewable portfolio would cut Xcel's emissions of carbon dioxide — a gas linked to climate change — by about 14 percent to 29 million tons in 2015, according to the filing.

Many of the details of Xcel's proposal are still confidential.

"This makes it hard for now to evaluate what they are proposing," said John Nielsen, energy-program director at Western Resource Advocates.

Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com



Entech Solar Announces 2009 Second Quarter Results

Entech Solar Announces 2009 Second Quarter Results  

Published 10 August 2009

  Entech Solar, Inc. with plans to become a leading developer of renewable energy technologies, announced today its financial results for the quarter ended June 30, 2009.Second Quarter Operational Highlights --Completed preliminary design and construction of a module prototype of its next-generation concentrating solar product, ThermaVolt™ II which will be deployed with both ground and roof-mount trackers, and is being designed for low cost, manufacturability, ease of installation and high reliability.--Filed multiple patent applications associated with the ThermaVolt II module to ensure appropriate intellectual property protection. --Recently completed the preliminary design of its patented tubular skylight and announced its intention to commercialize this product. --Business transformation from a flat-plate photovoltaic engineering, procurement and construction company to an advanced technology-based solar solutions developer resulted in significant revenue reduction in the second quarter of 2009. “Entech Solar is pleased to announce meaningful progress in both the development of its concentrating solar module, ThermaVolt II, and its tubular skylight products over the past few months,” said Dr. Frank Smith, Chief Executive Officer. “We expect ThermaVolt II to offer a compelling value proposition to the multi-billion dollar U.S. combined heat and power market with its dual output of electricity and thermal energy, competitive price point and standard installation.“In addition to the concentrating solar modules, we are developing and commercializing a line of tubular skylight products, which we view as an important strategic investment that may enhance the Company’s near-term revenue and market presence. We remain focused and dedicated to completing the development and commercialization of our products as soon as possible, and continue to assess opportunities to accelerate this process.” Financial ResultsAs the Company transitions from the flat-plate solar installation business, revenues for the 2009 second quarter amounted to $150 thousand, compared with $7.6 million reported in the second quarter last year. The Company recorded a gross profit for the quarter ended June 30, 2009 of $11 thousand, versus a gross loss of $2.9 million in the prior-year period. The Company’s net loss attributable to common shareholders for the second quarter of 2009 was $4.3 million, or $(0.02) per share, versus a comparable loss of $24.0 million, or $(0.12) per share, after the $15.5 million preferred stock dividend recorded in the second quarter of 2008.   Source: Entech Solar
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Monday, August 10, 2009

SA should pursue solar power - Scholes

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Ditch coal, says climate change expert

MARK Diesendorf believes that individuals acting collectively could bring about a shift away from a dependence on coal-fired energy.

Dr Diesendorf said marches, consumer boycotts, corporate shareholder campaigning, and withdrawal of deposits from environmentally irresponsible financial institutions could allow renewable energy to flourish and become mainstream.

"We have this portfolio of different technologies and already most of them are commercially available unlike coal carbon geosequestration, which is a long way from being commercially viable," he told the forum.

"So we've got wind, bioenergy _ burning sugar cane waste in Queensland _ we have solar in homes, solar hot water, we have solar power, flat face and concentrated and coming up very soon we will have hot rock geothermal power," he said.

"Last year in Europe wind power was the technology that installed the most power generating capacity.

"I think the principal hope for change is through private action," he said.

Dr Diesendorf praised the efforts of BREAZE and similar groups in Ballarat, Castlemaine, Bendigo and the Hepburn shire,

"This whole region is so impressive and we can build on that, but we have to do some additional things on top of what you are already doing," he said.

He said the former Howard Government had low greenhouse targets and had starved renewable energy research.

"Some of our best people left the country because they couldn't get funded. Fortunately some of them landed on their feet. One of them landed in the arms of an IT billionaire in California and he's doing wonderful things there.

"They did set a Mandatory Renewable Energy Target for 2010, but the target was so small that we reached it in 2006 and then we went from boom to bust."

Dr Diesendorf was critical of smaller scale government efforts such as the solar park under construction in Ballarat.

"We have some token demonstration products which are better than nothing, and I know you have Solar Cities in this region but they are token," he said.

"They are not extending across the whole of society. They're there to create the impression politically that something is happening when in fact it's really just a demonstration.

"Under a Labor Government we got superb election promises in 2007 ... not one of those promises has been fully implemented yet for renewable energy."

He said the proposed Carbon Pollution Reduction Scheme was flawed because "instead of making the polluters pay so we can shift to clean technology, the polluters in the first five years of this scheme will get $12 billion worth

of free emission permits".

"Once they get those permits, they will have a market value, so they will be able to sell them at the market value so the shareholders will make a massive profit.

"So really this is the carbon pollution reinforcement scheme."

Entech Solar Announces 2009 Second Quarter Results

Solid State Technology - semiconductors, chips, integrated circuits Entech Solar Announces 2009 Second Quarter Results August 10, 2009 -- Entech Solar, Inc. (OTC BB: ENSL.OB) (the "Company" or "Entech Solar"), with plans to become a leading developer of renewable energy technologies, announced today its financial results for the quarter ended June 30, 2009.

Second Quarter Operational Highlights

Completed preliminary design and construction of a module prototype of its next-generation concentrating solar product, ThermaVolt II which will be deployed with both ground and roof-mount trackers, and is being designed for low cost, manufacturability, ease of installation and high reliability.

Filed multiple patent applications associated with the ThermaVolt II module to ensure appropriate intellectual property protection.

Recently completed the preliminary design of its patented tubular skylight and announced its intention to commercialize this product.

Business transformation from a flat-plate photovoltaic engineering, procurement and construction company to an advanced technology-based solar solutions developer resulted in significant revenue reduction in the second quarter of 2009.

"Entech Solar is pleased to announce meaningful progress in both the development of its concentrating solar module, ThermaVolt II, and its tubular skylight products over the past few months," said Dr. Frank Smith, Chief Executive Officer. "We expect ThermaVolt II to offer a compelling value proposition to the multi-billion dollar U.S. combined heat and power market with its dual output of electricity and thermal energy, competitive price point and standard installation.

"In addition to the concentrating solar modules, we are developing and commercializing a line of tubular skylight products, which we view as an important strategic investment that may enhance the Company's near-term revenue and market presence. We remain focused and dedicated to completing the development and commercialization of our products as soon as possible, and continue to assess opportunities to accelerate this process."

Financial Results

As the Company transitions from the flat-plate solar installation business, revenues for the 2009 second quarter amounted to $150 thousand, compared with $7.6 million reported in the second quarter last year. The Company recorded a gross profit for the quarter ended June 30, 2009 of $11 thousand, versus a gross loss of $2.9 million in the prior-year period. The Company's net loss attributable to common shareholders for the second quarter of 2009 was $4.3 million, or $(0.02) per share, versus a comparable loss of $24.0 million, or $(0.12) per share, after the $15.5 million preferred stock dividend recorded in the second quarter of 2008.

Conference Call

Entech Solar will host a conference call at 10:00 a.m. Eastern on August 10, 2009 for the quarter ended June 30, 2009. During the call, Dr. Frank W. Smith, Chief Executive Officer, and Sandy J. Martin, Chief Financial Officer, will review the Company's operations, business and financial matters. During the call, the Company may discuss or respond to questions which may constitute material information that has not been previously disclosed. The telephone number for the conference call is 866-831-6247 domestically and 617-213-8856 internationally, with conference ID #52435504. A live webcast of the call will also be available on the company's website, www.entechsolar.com.

The webcast will be archived on the site, and investors will be able to access an encore recording of the conference call for thirty days by calling 888-286-8010 domestically or 617-801-6888 internationally, with conference ID #63010910. Encore recordings will be available two hours after the conference call has concluded.

About Entech Solar

Entech Solar, Inc. plans to become a leading developer of renewable energy technologies for the commercial and industrial markets. Entech Solar designs concentrating solar modules that provide both electricity and thermal energy as part of its ThermaVolt product line. The Company also develops a state-of-the-art tubular skylight that provides superior light output and optical efficiency for the commercial and industrial green buildings initiatives. For more information, please visit www.entechsolar.com.

Forward Looking Statements:

Except for historical information contained herein, this document contains forward-looking statements within the meaning of Section 21-E of the Securities Exchange Act of 1934. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's 10-K and its quarterly reports on Form 10-Q both as filed with the Securities and Exchange Commission, which include the Company's cash flow difficulties, dependence on significant customers, and rapid development of technology, among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.

ENTECH SOLAR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) (In thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Revenues: Contract $ 149 $ 7,596 $ 1,247 $ 15,825 Equipment 1 - 144 - Related party - - 597 775 Related party - Former Chairman - - 125 - Total 150 7,596 2,113 16,600 Cost of Revenues: Contract (73 ) 10,522 752 21,153 Equipment - - 97 - Related party - - 601 673 Related party - Former Chairman - - 142 - Manufacturing operations impairment 212 - 6,968 - Total 139 10,522 8,560 21,826 Gross Profit (Loss): Contract 222 (2,926 ) 495 (5,328 ) Equipment 1 - 47 - Related party - - (4 ) 102 Related party - Former Chairman - - (17 ) - Manufacturing operations impairment (212 ) - (6,968 ) - Total 11 (2,926 ) (6,447 ) (5,226 ) Operating Expenses: Selling, general and administrative expenses 2,011 4,803 10,468 9,490 Depreciation and amortization 719 735 1,459 1,252 Research and development expenses 1,680 57 2,175 98 Total Operating Expenses 4,410 5,595 14,102 10,840 Loss from Operations (4,399 ) (8,521 ) (20,549 ) (16,066 ) Other income (expense) Beneficial conversion and warrant amortization - (18 ) - (50 ) Interest income 53 62 77 363 Other income (expense) (32 ) - 5 - Total other income (expense), net 21 44 82 313 Net Loss (4,378 ) (8,477 ) (20,467 ) (15,753 ) Net Loss attributable to noncontrolling interest 69 - 196 - Net Loss attributable to Entech Solar, Inc. (4,309 ) (8,477 ) (20,271 ) (15,753 ) Accretion of preferred stock dividends - Series C - (5 ) - (9 ) Preferred stock dividends - Series F - (15,512 ) - (15,512 ) Net Loss attributable to Entech Solar, Inc. Common Shareholders $ (4,309 ) $ (23,994 ) $ (20,271 ) $ (31,274 ) Net Loss attributable to Entech Solar, Inc. per Common Share (Basic and Diluted) $ (0.02 ) $ (0.12 ) $ (0.09 ) $ (0.16 ) Weighted Average Common Shares Outstanding used in Per Share Calculation (Basic and Diluted) 238,154 193,877 237,645 192,101 -------------------------------------------------------------------------------

ENTECH SOLAR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2009 AND DECEMBER 31, 2008 (In thousands, except share and per share data) June 30, 2009 December 31, 2008 (UNAUDITED) * Assets Current assets: Cash and cash equivalents $ 5,809 $ 12,169 Accounts receivable - trade (net of allowance of $321 and $155 at June 30, 2009 and December 31, 2008, respectively) 798 1,971 Rebates receivable - 115 Inventory (net of reserve of $2,969 and $1,112 at June 30, 2009 and December 31, 2008, respectively) 744 3,664 Costs and estimated earnings/losses in excess of billings 35 2,613 Escrow funds relating to contract performance 50 1,339 Prepaid expenses and deposits 446 964 Total Current assets 7,882 22,835 Advances on machinery and equipment - 2,285 Property and Equipment, net 3,163 5,969 Intangible and other assets Other intangible assets, net 21,808 23,058 Goodwill 23,837 23,837 Other deposits 145 153 Total Assets $ 56,835 $ 78,137 Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 2,784 $ 4,076 Customer deposits - related party - 1,023 Renewable Energy Credit guarantee liability, current portion 60 60 Series D Preferred Stock Warrants 1,394 1,394 Billings in excess of costs and estimated earnings/losses 144 760 Total Current liabilities 4,382 7,313 Renewable Energy Credit guarantee liability, net of current portion 180 180 Total Liabilities 4,562 7,493 Convertible redeemable preferred stock Series C convertible redeemable preferred stock - 170 Series D convertible redeemable preferred stock 11,180 11,180 Total Convertible redeemable preferred stock 11,180 11,350 Stockholders' Equity Preferred stock convertible $.01 par value authorized 10,000,000; 5,503,968 issued and outstanding: Series B 7%- 611,111 shares liquidation preference $550,000 6 6 Common stock, $.001 par value; authorized 450,000,000; 238,417,737 and 236,420,779 issued at June 30, 2009 and December 31, 2008, respectively; 238,389,869 and 236,392,911 shares outstanding at June 30, 2009 and December 31, 2008, respectively 238 236 Additional paid-in capital 170,073 167,979 Accumulated deficit (129,159 ) (108,888 ) Treasury stock, 27,868 shares, at cost, as of June 30, 2009 and December 31, 2008, respectively (39 ) (39 ) Noncontrolling Interest (26 ) - Total Stockholders' Equity 41,093 59,294 Total Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity $ 56,835 $ 78,137 * Derived from audited financial information -------------------------------------------------------------------------------

A service of YellowBrix, Inc.

Sunday, August 9, 2009

Solar program shows clunkers aren't the only popular incentive

The Florida solar rebate program is so successful that it keeps running out of money, forcing Florida residents and businesses that install solar energy systems to gamble on the possibility that they’ll never see the state’s promised payback.

With a $4 rebate for every watt of photovoltaic power installed and significant rebates for homes or businesses installing solar hot water heaters, the stakes can total tens of thousands of dollars.

“We’ve been victims of our own success,” said Florida House Majority Leader Adam Hasner, R-Delray Beach, a solar energy supporter. “There hasn’t been enough money to sustain the amount of people who want to apply.”

The program, begun in 2006, currently owes $7 million for approved rebates, according to Gov. Charlie Crist’s energy office, which administers the program. With $5 million in federal stimulus funds feeding the program this year and $9.4 million more expected, the program is playing catch-up as demand rises.

Florida’s record $6 billion budget shortfall kept the state from investing any of its own money in the program this year, Hasner said. Still, the solar rebate program will be better funded this year than ever before – assuming the additional stimulus funds materialize.

For those willing to purchase solar photovoltaic panels, the state promises a cash rebate that can comprise 40 percent to 50 percent of a system’s total cost. Add that to a 30 percent federal tax break and the incentive to go solar is stronger than ever, South Florida solar business owners say.

But, with $1.5 million in rebates approved for South Florida in fiscal year 2009, vendors are concerned about what could happen if the Legislature fails to fund the program again next year.

“Until the funding gets cleared up, it’s only the very wealthy and committed green advocates who will [invest in costly solar projects],” said Paul Farren, owner of the Energy Store in Hollywood.

Vendors typically sell solar thermal systems that heat water for homes and businesses, but Farren said he won’t succeed without the pricier photovoltaic systems. His business typically sells one photovoltaic system a month, but he needs to average two or three a month to survive.

Need a guarantee

Business would boom if Florida’s rebate program was guaranteed, said Alan Towsley, owner of Sunworks in Miami. Towsley, who installs solar technology across Broward, Miami-Dade and Monroe counties, said he would probably double his staff of six. But, ending the state rebate would significantly harm his photovoltaic and solar thermal business – a combined 65 percent of Sunworks’ revenue, Towsley said.

Dan Goldberg, co-owner of Advance Solar & Spa, said his company started concentrating more heavily on photovoltaic systems a few years ago when the rebate program began.

Goldberg said he’s watched the number of solar companies in the tri-county area grow rapidly since the program began.

“I get a call at least once a week from a new solar contractor getting into business,” he said.

With offices in Fort Lauderdale and Fort Myers, Goldberg said Advance Solar did hundreds of solar jobs in the last year. If the solar rebate program ended, though, he estimated business would decline 10 percent to 20 percent.

Goldberg said the program could be fixed to promote better economic development if the emphasis was shifted from photovoltaics to systems that heat water inside homes and businesses.

Right now, homeowners can get up to $20,000 back and businesses can get up to $100,000 back on photovoltaic systems. On the other hand, solar thermal units for the home only get a $500 rebate.

Solar thermal systems are typically cheaper than photovoltaics and they generate more in energy savings for the money spent, Goldberg said, noting that if bigger rebates went to solar thermal systems, more economic activity would result.

Jeremy Susac, executive director of the governor’s energy office, agreed that the rebate program could use some tweaking. More than three-fourths of the approved rebates are for solar thermal installations, but most of the money goes to photovoltaics, Susac noted.

“If you’re looking for the most bang for your buck, you’d want to fund the solar thermal side,” he said.

And, with market forces lowering the cost of photovoltaics and more generous federal tax credits recently enacted under the stimulus bill, it may be prudent to lower photovoltaic rebates in favor of thermal rebates.

Still, the program will likely remain an important piece of Crist’s alternative energy strategy next year, Hasner said.

“I would expect that there’s going to be a strong push to fund it at the highest level possible under the existing budget constraints,” he said.


bfrogameni@bizjournals.com | (954) 949-7511

Friday, August 7, 2009

Bill Gross's Solar Breakthrough

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Bill Gross is nothing if not an enthusiast, which makes him a great salesman for whatever it is he happens to be selling. A lifelong entrepreneur, a longtime evangelist for solar energy and the CEO of eSolar, a Google-funded startup that designs and develops concentrating solar power (CSP) projects at utility scale, Gross is one of the most interesting business people I've known.

I met Bill in 2002, when I wrote a critical story about him for FORTUNE –- investors in Idealab, his Internet incubator, were suing him after the dot-com bubble burst –- and although he and his wife, Marcia Goodstein, were more than mildly irritated with me then, we've reconciled and I now count myself as an admirer of Bill's. He's always got a million things going on, some of them slightly nutty, but all of them interesting. He's in the robot business with a company called Evolution Robotics and he's the founder of Aptera, a very cool electric car company (in which Google has invested) that I wrote about last spring.

Today, Bill and eSolar are staging a grand opening for eSolar's first plant, called the Sierra SunTower, located in the southern California desert near Lancaster. Below are a couple of photos, taken by Bill, from a helicopter ride over the plant on July 3. He sent them to me via Picasa, the photo sharing site now owned by Google, which he founded back in the 1990s. Like I said, he's a serial enterpreneur. (Bill also invented the idea of paid search, but that's another story.)

In any event, this eSolar plant is a big deal, according to Bill, because it is producing solar energy at a lower cost than other solar thermal plants and at a much lower cost than utility-scale solar photovoltaic arrays. Concentrating solar power (CSP), also known as solar thermal power, produces energy by using mirrors or lenses to focus the sun's heat and boil liquids that become a heat source for a steam turbine. Climate-change expert Joseph Romm, writing in Salon, opined last year that solar thermal

will be the most important form of carbon-free power in the 21st century. That's because it's the only form of clean electricity that can meet all the demanding requirements of this century.

Solar thermal technology has been deployed commercially for decades, but Gross tells me that eSolar has been able to drive costs down by mass-producing and deploying thousands of small mirrors across fields that track the sun and reflect its heat back at a thermal receiver mounted on a tower. "Our breakthrough is lots and lots of small mirrors, and lots and lots of software to control them," he says. The Sierra SunTower alone uses 24,000 mirrors, made by a contract manufacturer in China. You can read about the technology and see pictures here on eSolar's website.

eSolar's Sierra Sun Tower Plant, with panels arrayed to display a message.

Through a power purchase agreement with Southern California Edison, the Sierra SunTower plant will supply 5 MW of clean energy to the grid. That's not a lot, but it's just the start of big things to come, Gross says.

While Google is eSolar's best-known investor, two other big backers of the company—an Indian energy and telecom firm called the ACME group and Princeton, N.J.-based NRG Energy—are ready to step up their commitment to solar thermal, now that they can measure the cost and efficiency of eSolar's technology under real-world conditions.

Acme, which invested $30 million in eSolar, has agreed to invest another $20 million, Gross told me. ACME has said it plans to build, own and operate up to 1 GW of solar thermal plants over the next 10 years using eSolar's designs and mirrors. Construction will begin this year.

NRG, meanwhile, plans to start building a 92 MW plant in New Mexico as soon as it wins regulatory approval, Gross says. NRG has agreements with eSolar to develop solar power plants with a total generation capacity of up to 500 MW at sites within California and across the southwest.

I emailed David Crane, the chief executive of NRG, to ask him about eSolar. He was on his way to today's ceremony and emailed back:

Bill Gross is the kind of can-do visionary–with the innate ability to find the "winning" disruptive technology of the future–who we, at NRG, want to work with as we seek to deploy a new generation of sustainable and climate-friendly power technology in this country.

It's impossible for me to evaluate Gross's claims for his technology. But the fact that big companies are willing to invest capital in eSolar -- at a time when capital is scarce -- leads me to believe that Bill is, once again, onto something big.

"We have a cost-effective, no-subsidy solar power solution and it's for sale, anywhere around the world," he says.

Bill Gross and David Crane are regulars at FORTUNE's Brainstorm: Green conference about business and the environment, which I co-chair, and I'm pleased that they'll both be back as speakers next year.

eSolar's Sierra Sun Tower Plant, with another message.