POWER COMPANY IN FIRST THIN FILM POWER PLANT BUILD

First Solar is the biggest success story in the solar industry. In 2007, its stock value grew 795%. It specializes in the cadmium telluride thin-film formula, is run by solar industry-savvy corporate officers and cannot expand its production capacity fast enough to meet demand.

Sempra Energy, a California power company, has decided to enter the solar power generation business. It will work with First Solar to develop a solar facility using cadmium telluride thin film panels in southern Nevada.

Several approaches are being used for utility-scale solar energy generation in the sun-saturated southwestern deserts. Concentrating Solar Power (CSP) plants do not use photovoltaic materials like silicon panels or thin films. Instead, reflectors concentrate the sun to superheat liquid that flows to boilers where water is turned into steam to drive turbines that generate electricity.

CSP is the cheapest form of solar power but it is still more expensive than fossil fuel power plant-generated electricity. Because of this cost conundrum, other approaches are still being tried.

Silicon panels mounted on axes can track the sun to sustain longer direct intensity and increase a PV system’s output. But this also increases the system's cost and maintenance requirements.

Sempra Generation of San Diego will build its El Dorado solar project on 80 acres adjacent to the El Dorado natural gas power plant. There will be enough First Solar cadmium telluride thin film panels to produce 10 megawatts of power during periods of peak sun.

Thin film panels are cheaper to manufacture than conventional silicon solar panels and First Solar's cadmium telluride (CdTE) absorbs a wider range of sunlight’s spectrum. The CdTe does not turn as much of the light it absorbs into electricity and therefore has a lower “efficiency” rating than silicon. The thin film does, however, convert more indirect and diminished sunlight into electricity so it generates earlier in the day, later in the day and when it is cloudy.

The expectation is that the Sempra/First Solar installation will be cheaper to build and maintain and make up for its lower peak insolation output with a longer daily duration of output.

Although CSP power plants recycle the limited amount of water they require, the El Dorado thin-film project will not require even that limited amount of water, a real plus in the Nevada desert.

A big advantage of CSP technology is its potential to store generated steam for short periods of time and drive turbines to create electricity in the absence of any sun. Though the El Dorado thin film project will have no storage capability, it is conveniently located adjacent to a natural gas plant. It can be effectively used to supplement natural gas-generated base load power during periods of peak demand - which conveniently come at the hottest times of the day when solar power is most abundant.

Footnote: Local governments need to take note of what brought Sempra and First Solar to Boulder City, Nevada. Roger Tobler, Mayor, Boulder City: "When Boulder City decided several years ago to allocate roughly 3,000 acres for the development of an Energy Zone, this is exactly the kind of project we anticipated."

Competitive Renewable Energy Zones (CREZs), areas designated by state, county or municipal governments as suitable for New Energy and new transmission development, bring the entrepreneurs like bees to pollen.

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Sempra Generation Announces First Solar Energy Project; Upon Completion, 10-Megawatt Nevada Photovoltaic Facility Will Be Largest Operational ‘Thin-Film’ Installation in North America
July 24, 2008 (Market Wire/Comtex via MarketWatch)

WHO
Sempra Energy subsidiary Sempra Generation (Michael W. Allman, president/ceo); First Solar (Mike Ahearn, ceo)

WHAT
Sempra Generation will build the El Dorado Energy solar project, a 10-megawatt (MW) thin-film photovoltaic power-generation facility using thin-film materials supplied by First Solar. It will be the biggest thin-film solar power producing facility in North America.

A 40 megawatt installation of First Solar thin film in Brandis, Germany. (click to enlarge)

WHEN
- The El Dorado solar project is expected to be complete later in 2008.
- This is Sempra Energy’s first solar energy project.
- First Solar was formed in 1999. Its 2007 revenues were $500+ million.
- Sempra Energy 2007 revenues were $11+ billion.

WHERE
- The El Dorado solar project will be built about 40 miles southeast of Las Vegas on 80 acres near Boulder City, Nev., adjacent to an El Dorado Energy 480-megawatt natural gas-fired power plant.
- First Solar is based in Phoenix, Ariz.
- Sempra Energy is based in San Diego, Calif.

WHY
- When completed, the 10-megawatt El Dorado solar project will be the largest thin-film solar electricity-generating facility in North America.
- First Solar will handle engineering, procurement and construction and will monitor and maintain the plant.
- First Solar modules will generally produce more electricity under real-world conditions than conventional solar modules with similar power ratings.
- Expansion phases are being considered.
- Sempra Generation is enlisting customers.
- Sempra Generation operates power plants across the U.S. It is in the process of developing solar and wind power projects in the Pacific Southwest.
- Sempra Energy is a Fortune 500 energy services holding company employing 13,500 and serving 29+ million.

First Solar is expanding its manufacturing capacity as fast as it can - and still cannot keep up with demand. (click to enlarge)

QUOTES
- Michael W. Allman, president/ceo, Sempra Generation: "This new solar project is another step in Sempra Generation's long-range plan to emerge as a leading renewable-energy developer…We look forward to helping the region's utilities meet state requirements calling for them to include solar, wind and other renewable energy sources in their power portfolios."
- Mike Ahearn, ceo, First Solar: "We are pleased to be working with Sempra Generation on its first large-scale solar power plant…By making this commitment to develop regional renewable electric generation, Sempra Generation is moving us closer to our collective climate protection goals."