SOLAR: GETTING BIGGER, MORE AFFORDABLE EVERYDAY

It is the diminishing value of progressively expensive fossil fuels combined with the nation's and the world's insatiable appetites for more energy, more energy, that will make renewable energy inevitable.

Insiders see solar energy industry as ready for take-off; But challenges remains and we still need government incentives, industry says
Phoebe Sweet, August 19, 2007 (Las Vegas Sun)

WHO
Julie Blunden, vice president, SunPower; Noah Kaye, spokesman, Solar Energy Industries Association; Tom Fair, renewable energy executive, Sierra Pacific; Gilbert Cohen, vice president, Acciona Energy; Kathleen Drakulich, utilities attorney, Sierra Pacific Resources;

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WHAT
The solar energy industry is rapidly maturing, especially in places where the insolation is suitable.

WHEN
The article evaluates the state of solar energy now and into the foreseeable future.

WHERE
- A 15-megawatt installation is being developed at Nellis Air Force Base in Nevada.
- Acciona of Spain is developing Nevada Solar One, a 64-megawatt installation, near Boulder City, Nevada.
- Pacific Gas & Electric is developing a 550-megawatt installation in central California.

WHY
- The industry still faces short term challenges: polysilicon and other materials shortages, inconsistent incentives, rapidly emerging competing technologies, poor transmission infrastructure, intermittency.
- The industry’s worst problem may be expectations of lower costs. One expert predicts a 50% drop in 5 years. Another says every time capacity doubles the price drops 18%.
- Congress may extend the investment tax credit for renewables to 8 years and is considering an RES, requiring renewables.
- Nevada has an RES requiring 20% of power come from renewables by 2015, 25% of that from solar. California’s RES makes even more demanding requirements.
- These measures have led to development of Concentrating Solar Photovoltaic (CSP) installations in California and Nevada. CSP uses parabolic fields in huge fields to heat liquids carried through in tubes to drive steam generators. CSP has output capacities that match fossil fuel power plants.

Plenty of daylight to burn. (click to enlarge)

QUOTES
- Tom Fair, renewable energy executive, Sierra Pacific: "A certain segment of the utility industry believes it doesn't have that much in the way of indigenous resources. It's not thrilled about doing more…We, on the other hand, are in favor of more."
- Gilbert Cohen, vice president, Acciona Energy: "It should be good for the industry, though, for the utilities to know that you have developers that are ready to take a huge amount of risk…"
- Kathleen Drakulich, utilities attorney, Sierra Pacific Resources: "Like with any technology - personal computers, cell phones - the more we do it , the better we get at it and the more there will be on the market…The thing that makes technology develop and makes it less expensive is people willing to invest in it when it's expensive."