UTILITY IN BIG NEW ENERGY BUY

California utility cuts new solar thermal deal
Matt Daily, Nichola Groom and Bernie Woodall (w/Leslie Gevirtz), June 17, 2009 (Reuters)

"Southern California Edison, a utility arm of Edison International, [has] signed contracts to buy up to 960 megawatts of power from solar thermal and wind power suppliers.

"The contracts are part of California's aggressive push to require utilities to add more renewable energy sources and reduce the state's dependence on fossil fuels that are blamed for contributing to climate change."

In the absence of strong federal drivers, state RESs are driving New Energy growth. )click to enlarge)

"SCE's new agreements include two contracts with Germany's Solar Millennium AG for up to 726 MW of electricity from solar thermal plants that are scheduled to begin operations in 2013 and 2014…Other contracts include a deal with BP unit BP Wind Energy and Ridgeline Energy LLC for 90 MW of wind power in Southeast Idaho and another with Columbia Energy Partners for 40 MW of wind power in Central Oregon. Both projects are expandable…

"Solar Millennium's solar thermal plants will be located…in the middle of the state. One of those projects could be expanded by an additional 242 MW…[SCE has also] signed contracts with Brightsource Energy to buy 1,300 megawatts of electricity from new solar thermal plants."

In response to RESs, utilities acrosss the country are investing in solar power plants (and wind projects). (click to enlarge)

"Solar thermal power plants use the sun's heat to create steam that powers an electricity-producing turbine. The thermal plants are typically much larger than plants made up of photovoltaic solar panels, which turn sunlight into electricity.

"Solar Millennium in March announced a joint project with NV Energy to build a 250 MW solar thermal plant near Las Vegas that will open in 2013 or 2014…expected to cost about $1 billion…Worldwide, Solar Millennium has about 2,000 MW of solar thermal projects either installed or in development, mainly in Spain, the United States, China and northern Africa…[It] opened Europe's first solar thermal power plant, Andasol 1 in Spain [last fall]…"