QUICK NEWS, August 15: IS SUN READY TO BE INCENTIVE-FREE?; WALMART’S FIRST WIND TURBINE; FEDS BACK RURAL SMART GRIDS

IS SUN READY TO BE INCENTIVE-FREE? California forecast to lead US to self-sustaining PV as dependency on incentives diminishes

Junko Movelian, 8 August 2012 (PV Tech)

“By 2016, the federal 30% Investment Tax Credit (ITC) and the California Solar Initiative (CSI), the nation’s largest ratepayer funded program, will have expired…Can the US PV industry be weaned off government subsidies and therefore become self-sustaining?...The US PV market has experienced steady growth through diversified and innovative policies and regulations...[which has made it] less vulnerable, and less dependent, on a single national incentive program…[It] has avoided some of the boom-and-bust PV demand cycles seen recently in European countries such as Spain and the Czech Republic…[dependent on] a feed-in tariff (FiT) type program]…

“…[California] represented 63% of the national market (140MW)...[when] the CSI was initiated in 2006…[It had] a 10-year commitment not only to install 3GW of distributed solar generation capacity across the state, but also to drive down the cost of solar generated power and establish a self-sufficient solar industry…[I]ncentive levels are automatically reduced over the duration of the program in ten steps, based on the market demand (MW volume of confirmed reservations issues)…creating predictability and stability…”

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“…[I]ncentive levels have been coming down as the market has grown and installed system cost has come down…There is a 93% correlation between installed system cost and rebate amount; as the system installed cost is lowered, so does the incentive level…By the end of Q2’12, the CSI had supported 980 MW-DC of installed capacity…While there is a distinct possibility that the program will end before 2016, California is however already preparing to exist without any state-level incentives…

“…[S]hort-term programs may now create market expansion, followed mainly by market regression…[T]he US PV market has…experienced two setbacks…The 30% ITC became available originally in 2006…During 2008, the industry was left waiting nervously, not knowing whether the ITC would be extended. This caused a surge in PV installations. In December 2008, the government extended the ITC for 8 years…[and] the market growth then slowed…Similarly, the recent expiry of the Federal Cash Grant caused a surge in installations at the end of 2011, in order to qualify for the grant in time. It is anticipated that the market in 2012 will see considerably slower growth…”

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WALMART’S FIRST WIND TURBINE Walmart Erects Its First Megawatt Wind Turbine In California

Todd Woody, August 6, 2012 (Forbes)

“As Walmart installed solar panels on its 100th California store in San Diego last week, a 265-foot-high wind turbine was rising outside one of the retail giant’s distribution centers in the rural reaches of the Golden State…The 1-megawatt, General Electric turbine in Red Bluff is Walmart’s first such installation and the next stage in the company’s efforts to eventually obtain 100% of its energy from renewable sources…[with multiple tools] and renewable energy at a lot of different levels…

“The company has installed micro-turbines atop light poles at stores in California and Massachusetts that generate between 2 to 3 kilowatts of electricity but Red Bluff is the first facility that will boast a full-sized wind turbine like those found on wind farms that generate hundreds of megawatts of power.”

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“The GE wind turbine is expected to supply between 15% and 20% of the Red Bluff distribution’s electricity demand. As with Walmart’s solar installations, the retailer won’t own the turbine. In this case, Walmart will buy the electricity it generates under a 15-year power purchase agreement with Foundation Windpower, a Silicon Valley company that installs large turbines for businesses…

“Walmart operates more than 100 distribution centers across the U.S. and the company is looking at the suitability of the sites for wind power…[but] don’t expect to see giant wind turbines go up at your local Walmart. Besides the inevitable headaches that would come from trying to obtain permits to install a 25-story machine with blades that stretch 250 feet, such a turbine would generate more electricity than a typical store needs…”

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FEDS BACK RURAL SMART GRIDS USDA Backs Smart Grid Efforts In Rural America

10 August 2012 (Renew Grid)

“To further improve electric lines and transmission and reduce peak electric loads by deploying smart grid technologies, the U.S. Department of Agriculture (USDA) Secretary Tom Vilsack has issued loan guarantees to rural electric utilities across the country.

“…Crewe, Va.-based Southside Electric Cooperative (SEC), one of the recipients… is using funds to build and improve a distribution line and transmission line, and will invest almost $7.4 million for smart grid system enhancements…[S]ervice will be upgraded for about 1,500 SEC members…”

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“With this funding, USDA Rural Development moves closer to reaching Secretary Vilsack's goal to fund more than $250 million for smart grid technologies…

“…This most recent announcement includes support for nearly $29 million in [rural] smart grid projects…[in] Idaho… Oregon… Washington… Indiana… Kansas… Kentucky… Minnesota… Mississippi… North Carolina… New York… Oklahoma… South Carolina… South Dakota… Iowa… Montana… North Dakota… Texas… [and] Virginia…”

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