{"id":284647,"date":"2010-02-05T18:09:09","date_gmt":"2010-02-05T23:09:09","guid":{"rendered":"http:\/\/www.grist.org\/article\/2010-02-05-the-little-solar-that-could\/"},"modified":"2010-02-05T18:09:09","modified_gmt":"2010-02-05T23:09:09","slug":"the-little-solar-that-could","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/284647","title":{"rendered":"The little solar that could"},"content":{"rendered":"<p>\t\t\t\tby Todd Woody <\/p>\n<p><\/p>\n<p>I spotted a rare critter on the streets of San Francisco<br \/>this week&#8212;a smiling, optimistic businessperson.<\/p>\n<p><\/p>\n<p>Then again, Ron Kenedi is in the solar panel business.&nbsp;<\/p>\n<p><\/p>\n<p>&#8220;The big news as I see it is the demand&#8212;demand keeps<br \/>growing everywhere,&#8221; says Kenedi, vice president of Sharp Solar, the renewable<br \/>energy arm of the Japanese conglomerate. &#8220;What really amazes me every day is<br \/>how much demand has grown throughout the world.&#8221;<\/p>\n<p><\/p>\n<p>Kenedi is not one for Pollyannaish optimism&#8212;he started in<br \/>the business around the time Ronald Reagan took down Jimmy Carter&#8217;s solar<br \/>panels from the White House roof.<\/p>\n<p><\/p>\n<p>&#8220;I used to have to go out there with a sandwich board on to<br \/>get people interested in solar,&#8221; he says. &#8220;Now I can&#8217;t even walk down the<br \/>street without people talking to me about solar and wanting it on their home<br \/>and businesses.&#8221;<\/p>\n<p><\/p>\n<p>That&#8217;s because there&#8217;s a boom in so-called distributed<br \/>generation under way&#8212;placing solar panels and pint-sized photovoltaic farms at<br \/>or near where electricity is consumed.<\/p>\n<p><\/p>\n<p>Until very recently, distributed generation just couldn&#8217;t<br \/>compete on cost with Big Solar&#8212;massive megawatt solar thermal power plants<br \/>usually located in the desert.<\/p>\n<p><\/p>\n<p>Big Solar has had the edge by the dint of the gigawatt-size<br \/>deals utilities have struck with developers like BrightSource Energy, eSolar,<br \/>and Solar Millennium. Large solar thermal power plants&#8212;which use mirrors to<br \/>heat liquids to create steam that drives a generator&#8212;could make electricity<br \/>cheaper than photovoltaic panels, which produce electrons when the sun strikes<br \/>semiconducting materials.<\/p>\n<p><\/p>\n<p>Now that&#8217;s all changing. Over the past year, a number of Big<br \/>Solar thermal projects have become mired in disputes over their impact on<br \/>fragile desert ecosystems and the lack of transmission lines to connect them to<br \/>cities. In December, California&#8217;s powerful Democratic senator, Dianne<br \/>Feinstein, <a href=\"http:\/\/www.nytimes.com\/2009\/12\/22\/business\/energy-environment\/22solar.html\">introduced<br \/>legislation<\/a> to ban renewable energy development on more than a million<br \/>acres of the Mojave Desert she wants to protect as national monument.<\/p>\n<p><\/p>\n<p>Photovoltaic module prices, meanwhile, have plummeted by about<br \/>30 percent over the past year thanks to an oversupply of modules and the rise<br \/>of low-cost Chinese manufacturers. Thin-film solar companies, which make solar<br \/>cells that use little or no expensive polysilicon and which layer or print them<br \/>on glass or metal, began to produce solar modules for less than a one dollar a<br \/>watt&#8212;long considered a key milestone for making solar competitive with fossil<br \/>fuels. Though less efficient than conventional crystalline solar modules,<br \/>thin-film solar cells can be manufactured more cheaply, making it particularly<br \/>suited for use by photovoltaic power plants.<\/p>\n<p><\/p>\n<p>Distributed solar&#8217;s new competitiveness can be seen in a<br \/>spate of deals and initiatives over the past few weeks as utilities turn to<br \/>small-scale solar to help meet mandates to obtain a growing percentage of their<br \/>electricity from renewable sources. As of today, 1,300 megawatts&#8217; worth of distributed solar<br \/>will be installed over the next five years&#8212;at peak output those arrays will<br \/>generate as much electricity as a big nuclear power plant.<\/p>\n<p><\/p>\n<p>California regulators two weeks ago approved Southern<br \/>California Edison&#8217;s five-year program to install 500 megawatts of solar arrays<br \/>on commercial rooftops. They also recommended that PG&amp;E, the big Northern<br \/>California utility, be given the go-ahead for its own 500-megawatt distributed<br \/>solar program to place small solar farms near substations and cities that can<br \/>plug directly into the grid.<\/p>\n<p><\/p>\n<p>And both utilities revealed additional distributed solar<br \/>deals this week. Southern California Edison agreed to buy 50 megawatts from<br \/>three small-scale solar farms to be built by San Francisco&#8217;s Recurrent Energy<br \/>in Kern and San Bernardino Counties in the eastern part of the state.<\/p>\n<p><\/p>\n<p>On Monday, PG&amp;E filed a request that regulators approve<br \/>a contract with <a href=\"http:\/\/eurusenergy.com\/\">Eurus Energy America<\/a>, a<br \/>joint venture between Tokyo Electric Power and Toyota Tsusho, for 50 megawatts<br \/>of solar electricity from three power plants to be constructed near Fresno.<\/p>\n<p><\/p>\n<p>&#8220;We&#8217;re seeing the rest of the industry cotton on to what<br \/>we&#8217;ve been saying, distributed solar done at the right size can scale,&#8221; says<br \/>Arno Harris, Recurrent&#8217;s chief executive. &#8220;Distributed solar is faster on<br \/>permitting, on environmental issues, and interconnection to the grid.&#8221;<\/p>\n<p><\/p>\n<p>For Sharp Solar, the biggest demand for its thin-film panels<br \/>comes from utilities. &#8220;That&#8217;s what&#8217;s opening up the utility sector for Sharp&#8212;it&#8217;s a very robust market,&#8221; says Kenedi.<\/p>\n<p><\/p>\n<p>(And lest you think this is just a California phenomenon,<br \/>the New York Power Authority last week <a href=\"http:\/\/www.nypa.gov\/solar\/100mw\/default.htm\">announced<\/a> a program to<br \/>install 100 megawatts of photovoltaic panels on rooftops and at ground stations<br \/>over the next four years.)<\/p>\n<p><\/p>\n<p>The Sacramento Municipal Utility District showed, just last<br \/>month, how fast the distributed generation market is growing when it put up 100<br \/>megawatts of photovoltaic projects up for bid and sold out the allotment in one<br \/>week.<\/p>\n<p><\/p>\n<p>But the shocker of the SMUD deal is that the utility is not<br \/>paying a premium for solar electricity, according to Adam Browning, executive director<br \/>of <a href=\"http:\/\/www.votesolar.org\/\">Vote Solar<\/a>, a San Francisco<br \/>nonprofit that promotes renewable energy (and an occasional Grist contributor).<\/p>\n<p><\/p>\n<p>I&#8217;ll spare you the utility industry calculus of &#8220;time<br \/>differential avoided costs,&#8221; but Browning has run the numbers and believes that<br \/>SMUD will pay essentially the same price for solar electricity as it would for<br \/>fossil fuel-generated power when demand peaks. (Solar farms typically supply<br \/>peak power as their output coincides with the time of day when demand spikes.)<\/p>\n<p><\/p>\n<p>&#8220;The point here is that this is an entirely revenue neutral<br \/>investment for SMUD,&#8221; Browning says. &#8220;They got solar electricity for what they<br \/>would have paid for fossil, which is a significant milestone.&#8221;<\/p>\n<p><\/p>\n<p>SMUD officials did not return requests for comment so I<br \/>could not verify those numbers with the utility, but given that solar<br \/>developers must put down a deposit of $20 a kilowatt for winning bids&#8212;that&#8217;s<br \/>$100,000 for a five-megawatt project&#8212;it seems unlikely there were many<br \/>speculators in the bunch willing to walk away from a six-figure commitment.<\/p>\n<p><\/p>\n<p>Truth be told, we&#8217;re going to need every kilowatt of green<br \/>electricity we can wring from Big Solar, distributed solar, wind, waves and<br \/>geothermal. But the rise of distributed solar generation will help ease the<br \/>load as well as the environmental pressures from developing other forms of<br \/>green energy.<\/p>\n<p><strong>Related Links:<\/strong><\/p>\n<p><a href=\"http:\/\/www.grist.org\/article\/2010-02-02-large-scale-distributed-energy-is-here-recurrent-energy-signs-50\/\">Large-scale distributed energy is here: Recurrent Energy signs 50MW power purchase agreement<\/a><\/p>\n<p><a href=\"http:\/\/www.grist.org\/article\/2010-01-26-how-innovative-financing-is-changing-energy-in-america\/\">How innovative financing is changing energy in America<\/a><\/p>\n<p><a href=\"http:\/\/www.grist.org\/article\/let-the-era-of-solar-wholesale-distributed-generation-begin\/\">Let the era of solar wholesale distributed generation begin<\/a><\/p>\n<p>\t\t\t<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<a href=\"http:\/\/ads.pheedo.com\/click.phdo?s=d7d8bb42633e17d284b8b979cbbef138&#038;p=1\"><img decoding=\"async\" alt=\"\" style=\"border: 0;\" border=\"0\" src=\"http:\/\/ads.pheedo.com\/img.phdo?s=d7d8bb42633e17d284b8b979cbbef138&#038;p=1\"\/><\/a><br \/>\n<img loading=\"lazy\" decoding=\"async\" alt=\"\" height=\"0\" width=\"0\" border=\"0\" style=\"display:none\" src=\"http:\/\/a.rfihub.com\/eus.gif?eui=2223\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Todd Woody I spotted a rare critter on the streets of San Franciscothis week&#8212;a smiling, optimistic businessperson. Then again, Ron Kenedi is in the solar panel business.&nbsp; &#8220;The big news as I see it is the demand&#8212;demand keepsgrowing everywhere,&#8221; says Kenedi, vice president of Sharp Solar, the renewableenergy arm of the Japanese conglomerate. &#8220;What [&hellip;]<\/p>\n","protected":false},"author":765,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-284647","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/284647","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/765"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=284647"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/284647\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=284647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=284647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=284647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}