The price of solar in California

Original article: http://www.renewablesinternational.net/the-price-of-solar-in-california/150/511/29293/
California's Division of Ratepayer Advocates (DRA) says that although the price of solar has plummeted in recent years, the bids for utility-scale projects in the state are paradoxically rising.

In the study (PDF) released last Tuesday entitled "California's solar PV paradox: declining California solar initiative prices and rising investor owned utilities bid prices," the DRA authors Nika Rogers and Derek Fletcher of the California Public Utilities Commission (CPUC) find that the price of retail solar PV – the small rooftop systems on family homes and small businesses – dropped by 19-22 percent from Q4 2008 to July 2010. However, the price of utility-scale solar projects (defined as “mostly 10 MW or more”) slightly increased from 2007 to 2009.

The authors identify three main risks behind the latter:

• difficult credit markets,
• deadlines for California's RPS, and
• the CPUC’s “reluctance to reject high-priced contracts providing a disincentive for developers to price their bid competitively.”

The authors also make a number of recommendations about how to fix the problem, including having the CPUC reject pricey bids. The authors recommend that California's solar market be compared to New Jersey's “with a specific eye toward whether New Jersey experienced the same discrepancy in utility and consumer-side price trends,” although the authors stop short of saying that the California market should be compared to other markets abroad, such as Ontario's booming PV sector or the many thriving solar markets in Europe. In the final sentence of the report, the authors do, however, recommend "further research" into "expanded feed-in tariff provisions to allow for excess solar energy to be sold back to the grid," which clearly shows that the authors are bound to the notion of net-metering and that feed-in tariffs should only be paid for power not consumed by the array owner – even though no such provisions apply to any solar feed-in tariffs anywhere.

John Geesman, a former member of the California Energy Commission (CEC), says he is not surprised by the study's findings as his criticism of California's RPS goes along similar lines: "the lack of transparency creates little downward pressure on price; the feel good, happy talk about contracts signed creates little pressure for actual delivered energy; and the distinction between flexible compliance and regulatory capture remains murky.” It is interesting to note that, while feed-in tariffs for solar have been accused of overpaying, feed-in tariffs have been plummeting in countries like France and Germany during the timeframe under investigation here, whereas the policy used in the US has apparently been overpaying solar.

The California Solar Initiative at the heart of the study only covers solar rooftops, not utility-scale field arrays, and some of the largest solar projects announced recently concerned concentrated solar power (CSP), not photovoltaics, but one of the study's authors Nika Rogers told Renewables International that "we only looked at solar PV projects and filtered out any solar thermal or solar trough projects.” Overall, the study provides an interesting overview of the California solar market for anyone looking to understand it better.

By Craig Morris (cm)

This article brought to you by the Indiana Renewable Energy Association.

Pre-election Look at Federal Energy Legislation Options by Neil Brown with Office of Sen. Lugar

Join us for a Webinar on October 21



Space is limited.
Reserve your Webinar Seat Now at:
https://www1.gotomeeting.com/register/792913553

The Indiana Renewable Energy Association in conjunction with Indiana Distributed Energy Advocates are sponsoring a Special Webinar with Neil Brown with the Office of Sen. Dick Lugar of Indiana.


Sen. Lugar and his proposed federal energy policy was the subject of a recent Indianapolis Star Guest Editorial by John Mutz. See http://indianarenew.blogspot.com/2010/10/mutz-says-lugar-plan-outshines-other.html

Although no one can predict the outcome of the November 2nd elections and its impact on federal energy policy, we can look back at what policies and proposals were introduced and look forward to see those that might be on the table during the lame duck session of Congress.

In early June, Sen. Lugar introduced his Practical Energy and Climate Plan or S. 3464. Later in June, the Congressional Research Service (CRS) prepared a memorandum that provided a short summary and comparison of four legislative proposals that were under some level of consideration in the U.S. Senate. Sen. Lugar's proposal was one of the four discussed. While all four proposals fall within the broad category of energy and climate change policy, the specifics of the proposals vary significantly, and their approaches vary in many ways.

For more details and a link to the CRS report, visit http://indianadg.wordpress.com/2010/06/27/crs-comparison-of-selected-energy-climate-change-bills/

Brown will both look back and look forward on these federal energy and climate change proposals.

Neil Brown is an advisor to Senator Dick Lugar of Indiana. He serves as a Senior Professional Staff Member of the Senate Foreign Relations Committee, with responsibility for energy security and the Nunn-Lugar non-proliferation program. Neil earned masters degrees in political theory and forced migration while studying as a Rhodes Scholar at University of Oxford (UK). He also holds a BA from Harvard University. He has done substantial field work while living in South Asia, Namibia and Egypt, and he has previously worked with the Harvard Institute for International Development and the Center for Strategic and International Studies. In 2009, Neil was a Washington Fellow of the National Review Institute. He is a board member of the Association of American Rhodes Scholars, a trustee of the Merton College Charitable Corporation. Neil is from Iowa, where his family farm is located.

Webinar Title: Pre-election Look at Federal Energy Legislation Options by Neil Brown with Office of Sen. Dick Lugar


Date: Thursday, October 21, 2010


Time: 10:00 AM - 11:00 AM EDT

This article brought to you by the Indiana Renewable Energy Association.

Duke Energy, Integrys Energy Services and Smart Energy Capital Launch Partnership to Build and Finance Solar Projects Throughout U.S.

CHARLOTTE, N.C., Oct. 13 /PRNewswire-FirstCall/ -- Duke Energy, Integrys Energy Services and Smart Energy Capital today announced the launch of a partnership to build and finance distributed solar projects throughout the United States.

Through the partnership, Duke Energy Generation Services (DEGS) and Integrys Energy Services (Integrys) will focus on jointly owning rooftop and smaller ground-mounted photovoltaic (PV) solar projects that deliver electricity to investment-grade commercial, government and utility customers under long-term power purchase agreements. Smart Energy Capital will develop the projects and arrange financing, enabling DEGS and Integrys to create a streamlined, end-to-end approach to bringing solar projects to market.

"What makes this partnership unique in the marketplace is its focus on distributed solar solutions that produce renewable electricity close to where it is used, rather than at centralized power plants," said Greg Wolf, DEGS senior vice president and head of the unit's commercial solar business. "The companies involved bring a wealth of project development, construction, management and financing expertise to the partnership."

DEGS, part of Duke Energy Corporation's (NYSE: DUK) Commercial Businesses, and Integrys Energy Services, a subsidiary of Integrys Energy Group (NYSE: TEG), believe the majority of PV solar growth over the next several years will involve commercial-scale ground-mounted and rooftop applications. While DEGS and Integrys will continue to independently develop commercial solar projects pursuant to their respective strategies, this partnership will serve as a way to cooperatively boost growth in an attractive segment of the solar market.

"We have invested more than $65 million in 20 different distributed generation solar projects across the U.S. with a combined capacity of more than 10 megawatts," said Joel Jansen, managing director and head of energy assets at Integrys Energy Services. "Partnering with DEGS and Smart Energy Capital enables us to expand our presence in this market in an efficient, strategic manner."

DEGS and Integrys will equally supply the necessary equity capital for construction and ownership of the distributed solar projects. Over the next two years, the companies intend to invest up to $180 million in total project capital. Individual project size is expected to be 500 kilowatts and up, depending on the needs of the customer. DEGS and Integrys will be responsible for operating and maintaining the projects.

Smart Energy Capital will work with its strategic origination partners, including CB Richard Ellis (under the name CBRE Solar) and Tremco Roofing, to help customers achieve their sustainability and energy objectives on optimal terms. The financing structure of the partnership enables DEGS and Integrys to monetize all available federal tax benefits associated with the distributed solar projects.

"We believe this partnership provides a solution to one of the fundamental challenges in the commercial segment of the solar market – reliability and certainty of financing," said Rob Krugel, managing partner of Smart Energy Capital. "We are excited to form a strategic partnership with such large, experienced and well-capitalized power project owners as DEGS and Integrys to pursue distributed solar projects wherever market opportunities in the U.S. present themselves."

About Duke Energy Generation Services

Duke Energy Generation Services, part of Duke Energy's Commercial Businesses, is a leader in developing innovative renewable energy solutions, including wind, solar and biopower projects. DEGS builds, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. DEGS is also working to build commercial transmission capacity to help the U.S. meet its energy needs of the future. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

About Integrys Energy Services, Inc.

Established in 1994, Integrys Energy Services, Inc. provides competitive energy supply solutions, structured products, and strategies that allow retail residential, commercial, and industrial customers to manage their energy needs. Its principal energy marketing operations are in the northeastern quadrant of the United States. Through its subsidiary, Integrys Energy Services – Natural Gas LLC, Integrys offers natural gas products to a full range of end-users throughout the Midwest. Areas of generation expertise include cogeneration, distributed generation, renewables such as solar and landfill gas, as well as clean fuel generation, with facilities in selected markets throughout the United States. More information about Integrys Energy Services is available online at www.integrysenergy.com.

About Smart Energy Capital

Founded in 2009, Smart Energy Capital is a leader in the financing and development of solar energy projects. The company manages the development, financing, installation and operations of distributed power plants throughout the United States and Canada using proven photovoltaic technologies. The company delivers fully managed, predictably priced solar energy services for its commercial, government and utility customers. More information about Smart Energy Capital is available at www.smartenergycapital.com.

MEDIA CONTACTS

Duke Energy:
Greg Efthimiou 704-382-1925
24-Hour 800-559-3853
Integrys Energy Services:
Joel Jansen 920-617-6029
Smart Energy Capital
Rob Krugel 914-595-2641

This article brought to by the Indiana Renewable Energy Association.

Mutz says Lugar plan outshines other energy bills

http://www.indystar.com/article/20101012/OPINION01/10120313/Lugar-plan-outshines-other-energy-bills

Written by John Mutz

It's no secret that Indiana's economy is struggling to regain its footing. Like the rest of the country, we've lost a lot of jobs and our unemployment rate is higher than it has been in many years.

What may be surprising to some, though, are the great strides our state is making in the area of clean energy industries during these difficult economic times.

Relatively quietly, Indiana is making a name for itself as an outstanding place to manufacture electric cars and the batteries that run them, not to mention solar panels and parts for wind turbines.

Gov. Mitch Daniels and his team have rightly begun to focus on this area of opportunity for Hoosiers. Over the last year, Abound Solar in Tipton, Wind Stream Technologies in New Albany, EnerDel in Central Indiana, Anderson-based Bright Automotive, Brevini USA in Muncie, and Elkhart's Think North America have made headlines for creating jobs and giving our economy a much-needed boost.

A number of well-established companies are also having a huge impact.

Remy International in Pendleton just entered a partnership to bring a new-generation electric drive system to market. Cummins just received more than $38 million in federal grants to develop a highly efficient and clean diesel engine. Allison Transmission's new hybrid drive manufacturing plant in Indianapolis will employ 100 when it reaches full production.

Duke Energy is investing more than $2.8 billion into its coal gasification plant, which will burn a cleaner gas to produce power.

With these innovations, we're ahead of the clean energy curve, but now we need some changes to federal policy to remain there. Energy independence should be a priority in Washington. So far the House has passed a bill, and the Senate has not reached a consensus on climate change energy legislation.

One bright spot has been the fact that Indiana Sen. Richard Lugar is among those who believe that the country needs to take steps to reduce our dependence on foreign oil. He's filed a bill that will cut greenhouse gas emissions by 20 percent, or about 1.6 billion metric tons -- the equivalent of taking more than 240 million cars off our roads. His bill is a balanced approach that provides a reasonable step toward this goal, and it provides economic incentives that will support the growing Indiana clean energy business.

The evidence that clean energy leads to good, high-paying jobs for Hoosiers is clear. However, if you need more evidence consider this: China vaulted past Denmark, Germany, Spain and the United States last year to become the world's largest maker of wind turbines and is poised to expand even further. In addition, the Chinese have emerged as the world's largest manufacturer of solar panels and are pushing hard to build nuclear reactors and the most efficient types of coal power plants.

No matter what the case, we do need additional legislation at the federal level. It is better to consider an approach that doesn't threaten Hoosier jobs, such as cap-and-trade, but still moves us toward the goal of energy independence. Lugar's bill does this.

Mutz is a consultant and private investor, former two-term lieutenant governor of Indiana, former president of Lilly Endowment and former president of Cinergy/PSI Indiana.

This article brought to you by the Indiana Renewable Energy Association.

Deal in Place For NW Indiana Ethanol Plant

InsideINdianaBusiness.com Report
http://www.insideindianabusiness.com/newsitem.asp?ID=43966

Construction of a $254 million facility in Lake County that would convert garbage to ethanol appears to be moving forward. The Post Tribune reports Evansville-based Powers Energy LLC has reached terms with three firms to build the plant in Schneider. Powers Energy officials say they still have to receive the necessary permits from the Indiana Department of Environmental Management, but groundbreaking could occur as early as the spring of 2011.

Officials say they are awaiting the outcome of permitting for a similar facility in Florida before they move forward in Indiana.


The green energy facility is expected to initially employ up to 400 construction workers and up to 200 permanent staff members.

Lake County's Solid Waste Management District signed a contract last year with Powers Energy to eventually provide thousands of tons of municipal garbage on a daily basis.

Source: Post Tribune

This article brought to you by the Indiana Renewable Enegy Association.

US House Passes Bill Supporting Algae-based Fuels

Algal Biomass Organization Hails Passage of H.R. 4168
Legislation Removes a Major Barrier to Commercialization of Algae-Based Biofuels

WASHINGTON--(BUSINESS WIRE)--The Algal Biomass Organization (ABO), the trade association for the U.S. algae industry, today praised the U.S. House of Representatives for passing H.R. 4168, the Algae-based Renewable Fuel Promotion Act. ABO specifically recognized Reps. Harry Teague (D-NM), Mary Bono Mack (R-CA), Dave Reichert (R-WA) and Brian Bilbray (R-CA) for leading efforts to give algae-based biofuel tax parity with cellulosic biofuels with respect to a $1.01 per gallon production tax credit and a 50 percent bonus depreciation for biofuel plant property.

“Today, the House sent an unmistakable message of bipartisan support to the hundreds of companies, scientists, entrepreneurs and government agencies working to accelerate the development of algae-based fuels, which will create jobs, decrease emissions and reduce our nation’s dependence on imported fossil fuels,” said Mary Rosenthal, Executive Director of ABO. “The passage of this bill is a huge first step towards our goal of creating parity for algae-based biofuels within the tax code and among various other government programs.”

This article brought to you by the Indiana Renewable Energy Association.

Weekly Address: President Obama Lauds Clean Energy Projects as Key to Creating Jobs and Building a Stronger Economy

The White House
Office of the Press Secretary
For Immediate Release October 02, 2010


•Fact Sheet (pdf)

WASHINGTON – In this week’s address, President Obama announced that – due to clean energy incentives launched by his administration – a company called BrightSource plans to break ground this month on a new, revolutionary type of solar power plant. This will put about 1,000 people to work building the facility. And once completed, it will power up to 140,000 homes, making it the largest such plant in the world. But for all the potential of clean energy projects like this one, the GOP recently pledged to scrap all incentives for these projects, even ones currently in progress.

The full audio of the address is HERE. The video can be viewed online at http://www.whitehouse.gov/ .

Remarks of President Barack Obama

Weekly Address

The White House

October 2, 2010

Over the past twenty months, we’ve been fighting not just to create more jobs today, but to rebuild our economy on a stronger foundation. Our future as a nation depends on making sure that the jobs and industries of the 21st century take root here in America. And there is perhaps no industry with more potential to create jobs now – and growth in the coming years – than clean energy.

For decades, we’ve talked about the importance of ending our dependence on foreign oil and pursuing new kinds of energy, like wind and solar power. But for just as long, progress had been prevented at every turn by the special interests and their allies in Washington.

So, year after year, our dependence on foreign oil grew. Families have been held hostage to spikes in gas prices. Good manufacturing jobs have gone overseas. And we’ve seen companies produce new energy technologies and high-skilled jobs not in America, but in countries like China, India and Germany.

It was essential – for our economy, our security, and our planet – that we finally tackle this challenge. That is why, since we took office, my administration has made an historic commitment to promote clean energy technology. This will mean hundreds of thousands of new American jobs by 2012. Jobs for contractors to install energy-saving windows and insulation. Jobs for factory workers to build high-tech vehicle batteries, electric cars, and hybrid trucks. Jobs for engineers and construction crews to create wind farms and solar plants that are going to double the renewable energy we can generate in this country. These are jobs building the future.

For example, I want share with you one new development, made possible by the clean energy incentives we have launched. This month, in the Mojave Desert, a company called BrightSource plans to break ground on a revolutionary new type of solar power plant. It’s going to put about a thousand people to work building a state-of-the-art facility. And when it’s complete, it will turn sunlight into the energy that will power up to 140,000 homes – the largest such plant in the world. Not in China. Not in India. But in California.

With projects like this one, and others across this country, we are staking our claim to continued leadership in the new global economy. And we’re putting Americans to work producing clean, home-grown American energy that will help lower our reliance on foreign oil and protect our planet for future generations.

Now there are some in Washington who want to shut them down. In fact, in the Pledge they recently released, the Republican leadership is promising to scrap all the incentives for clean energy projects, including those currently underway – even with all the jobs and potential that they hold.

This doesn’t make sense for our economy. It doesn’t make sense for Americans who are looking for jobs. And it doesn’t make sense for our future. To go backwards and scrap these plans means handing the competitive edge to China and other nations. It means that we’ll grow even more dependent on foreign oil. And, at a time of economic hardship, it means forgoing jobs we desperately need. In fact, shutting down just this one project would cost about a thousand jobs.

That’s what’s at stake in this debate. We can go back to the failed energy policies that profited the oil companies but weakened our country. We can go back to the days when promising industries got set up overseas. Or we can go after new jobs in growing industries. And we can spur innovation and help make our economy more competitive. We know the choice that’s right for America. We need to do what we’ve always done – put our ingenuity and can do spirit to work to fight for a brighter future.

Thanks.

This article brought to you by the Indiana Renewable Energy Association.