Representative image for sunny solar horizon (tripadvisor.com).
Florida Power & Light Company (FPL) announced recently that it expects the DeSoto Next Generation Solar Energy Center in Arcadia, Florida, to start providing electricity to customers in late October. FPL is the largest electric utility in Florida and one of the largest rate-regulated utilities in the U.S., and it serves 4.5 million customer accounts, while ranking in the top 10 among utilities for its solar portfolio nationally. Even without any state renewable portfolio standard (RPS), this Florida utility is capitalizing on the state’s sunny climate and preparing for potential federal requirements that would bind them to offering a significantly higher percentage of clean energy.
The DeSoto facility will surpass Nevada's Nellis Solar Power Plant for the title of largest solar photovoltaic solar facility in the nation and in North America with its 90,000 photovoltaic panels purchased from single-crystal silicon cell manufacturer SunPower Corporation, based in Silicon Valley, to convert the sun's rays into electricity to supply more than 3,000 homes with power. In addition, SunPower will be providing its sun-tracking technology in the coming years that will enhance the solar capture rate. This Florida site is using an alternative technology than the preferred option in other sun-intensive regions of the country such as Arizona, where concentrating solar power (CSP), a more costly approach which magnifies the sun's rays using solar dishes of various sorts, is taking root. However, Arizona has been less aggressive in scaling up in solar power, and the state’s largest utility, Arizona Public Service (APS), even canceled a CSP solar plant initiative recently.
This Florida facility is one of three new commercial-scale, renewable, solar power plants FPL is building in Florida, along with solar energy centers in Martin County and at NASA's Kennedy Space Center. Collectively, these combined resources will generate 110 megawatts of capacity by the end of 2010 and are crown Florida as the second largest solar power-producing state in the country, preceeded by California. FPL is considering building more plants over the next three years if the state's legislative and regulatory leaders continue to support solar energy such as enacting an RPS, especially if national energy reform and climate change legislation does not include this critical link for the clean energy industry.
Many states with budget deficits still have not recognized the stimulative economic benefits of promoting green energy investments in their states. Over the past year, the DeSoto facility in Florida benefited the local economy by creating more than 400 green jobs during construction. The surrounding county will also receive annual tax revenues that will amount to $2 million for schools and other local services by the end of 2010, as other struggling counties and states layoff school teachers. It is expected that the facility will eliminate the need of more than 575,000 tons of greenhouse gas emissions being projected into the atmosphere, which is equivalent to taking more than 4,500 cars off of the highways annually, according to the U.S. Environmental Protection Agency. In addition, the electricity generated by this facility will reduce Florida’s consumption of more than 277,000 barrels of oil and 7 billion cubic feet of natural gas.
In comparison to Florida, Arizona is progressing under the green umbrella of energy efficiency through various stimulus programs and other state initiatives. For instance, Ameresco, an independent energy solutions company, is beginning construction on its $6.2 million energy savings performance contract at the Arizona State Prison Complex in Tucson. This is the first Energy Service Performance Contract to be developed for the State of Arizona; this project required creative financing to meet the demands of the State, since the plans started before the Recovery Act was passed. This 850,000 square foot campus consists of 190 buildings, which include several high and medium security buildings, a central laundry facility, food-processing area, and a medical clinic.
The comprehensive energy conservation package consists of lighting system improvements, which may entail LED solid state lighting, lighting controls, transformer replacements, energy management systems, water conservation and cooling tower replacement. Ameresco is proclaiming approximately $7 million in energy and operational savings will be realized by the State over the thirteen-year term of the performance contract. One of the major goals of the project is to effectively translate dollars from the annually appropriated energy budget into infrastructure improvements that are of significant benefit to the State in the long-run. Moreover, the state is expected to reduce annual greenhouse gas emissions by approximately 2,061 metric tons of carbon dioxide, which is equivalent to removing 378 automobiles from the road.
Ameresco collaborated with the Arizona Department of Corrections, Arizona Department of Administration, Arizona Department of Commerce, Arizona Attorney General’s Office and the Arizona Energy Office to facilitate the kickoff of this project. Ameresco anticipates working with the Department of Corrections over the next few months to identify improvements at seven other facilities under their domain, which may be eligible for State Energy Program stimulus funding allocations.
However, as venture capital investments continue to improve, more energy efficient retrofits and large-scale clean energy capital projects will emerge in the private sector, where businesses and residences will capitalize on new technologies for cost-savings. Venture capital investment in cleantech improved dramatically in the third quarter of 2009 compared to the previous two quarters of this year, according to a report this past week by Greentech Media Research. In specific, the total venture capital investment in cleantech is estimated at $3.9 billion, with more than $1 billion of that amount awarded so far this quarter being attributed to the Recovery Act.
In general, stimulus programs and state incentives for clean energy have aided companies such as SunPower with mature solar technology that can be implemented immediately for green building infrastructure projects, while other components of the stimulus are being allocated for long-term research on less developed areas of green energy, including the replacement of the nation’s outdated power grid system with an innovative smart grid structure. As the U.S. becomes more reliant on cleaner, more energy efficient technology, it will need to enhance its manufacturing presence in this sector in order to avoid increasing the trade deficit and to also stimulate sufficient job creation for sustainable economic growth. In the mean time, the green scene for Arizona and Florida remains sunny with solar opportunities on the horizon.
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