March 13, 2009—Utilities in or near the southwestern US are planning to build or buy power from massive concentrating solar power (CSP) plants, while utilities throughout the nation are investing in solar photovoltaic (PV) power plants, creating growing momentum for the utility deployment of solar power throughout the country, according to a newsletter from the US Office of Energy Efficiency and Renewable Energy (EERE).
In terms of CSP plants, Southern California Edison (SCE) recently reached an agreement with BrightSource Energy for 1,300 megawatts (MW) of solar power, which qualifies as the world’s largest solar power deal to date, says EERE.
In addition, NRG Energy, Inc. just signed an agreement with eSolar to develop three solar projects totaling as much as 500 MW, also using solar power towers.
In terms of PV power plants, California’s Pacific Gas and Electric Company (PG&E) announced in late February that it plans to develop and own up to 250 MW of solar power facilities, while buying power from another 250 MW of solar power owned by independent developers, according to EERE.
The California Public Utilities Commission has also approved two previous large contracts that PG&E has signed with solar power developers, including a contract for 550 MW of thin-film solar PV from Topaz Solar Farms on the Carrizo Plain in San Luis Obispo County, as well as another contract with High Plains Solar Farms for 210 MW of silicon solar panels. SunPower, Inc. owns the latter project, and the former project was owned by OptiSolar, Inc., but First Solar, Inc. just bought out all of OptiSolar’s projects, including the PG&E project.
In the fourth quarter of 2008, First Solar managed to cut the manufacturing cost for its thin-film solar modules to 98 cents per watt, breaking the $1 per watt cost barrier. The company’s annual production capacity is expected to exceed 1,000 megawatts per year by the end of this year.
While California has a definite lead in solar power development, according to EERE, utilities in other states are now pursuing megawatt-scale solar PV projects. In New Jersey, the Public Service Electric and Gas Company (PSE&G) has proposed to spend $773 million to support the development of 120 MW of solar PV power through many projects located throughout its service territory.
In New York, the Long Island Power Authority is planning to support 50 MW of new solar power, including 13.1 MW of smaller projects developed by enXco and 36.9 MW to be installed by BP Solar in two large projects at DOE’s Brookhaven National Laboratory.
In Florida, Florida Power & Light (FP&L) has just broken ground on a 25-MW solar PV facility, the DeSoto Next Generation Solar Energy Center, which should be completed by the end of 2009.
