Solar

There’s lots of reason for optimism about clean technologies, Sen. Lisa Murkowski (R-Alaska) told a packed crowd on Tuesday afternoon at the RETECH 2011 Keynote Session. New ideas are emerging, costs are coming down and deployment is increasing, she noted—all welcome developments for America’s energy supply and the global environment. The rapid growth of the renewables is partially due to federal policies, but much of the progress has been a "direct result of your creativity and determination."

In Spain this June, a new 19.9-MW concentrated solar power (CSP) tower in Fuentes de Andalucía, Seville, reached the unprecedented milestone of storing thermal energy to its fullest capacity and supply power for an uninterrupted 24-hour period.

The major economic hurdle for renewable power generation technologies continues to be substantial installation costs. But another cost is associated with continuous load-balancing, made possible by backstopping that variable generation with dispatchable generators that typically consume expensive fossil fuels. Bottom line: Who pays for the capacity firming or backstopping resources?

I examined the magnitude of electricity subsidies for renewables compared with conventional generation technologies in my May 2011 editorial, based on data from a 2008 report prepared by the U.S. Energy Information Administration (EIA). An updated EIA report released in July determined that federal government subsidies have risen substantially during the past three years. In fact, overall renewable energy subsidies have almost tripled, increasing from $5.1 billion to $14.7 billion. In my opinion, we aren’t getting value for the money spent.

It may seem counterintuitive, but the strategic coupling of simple- and combined- cycle technologies with renewable generation could establish the conditions necessary for adding more renewable megawatts to transmission grids around the world.

If you needed additional proof that the power industry is changing, the ELECTRIC POWER keynote and panel discussions over the past few years have provided it—top-of-mind issues have been significantly different each year. For the 2011 keynote speaker and panelists, the challenges of reliability, regulatory compliance, financing, and getting the fuel mix right took center stage. In the wake of Japan’s nuclear crisis, safety also featured prominently.

Driven by state RPS requirements and the desire to diversify their energy sources, U.S. utilities continue to add more renewable power to their generation portfolios. As a result, they must deal with a number of important issues, including resource availability that varies geographically.

In the U.S., developers of thermal and photovoltaic solar plants face a number of challenges in their efforts to deploy more utility-scale solar power. Some trends, however, are helping solar proponents move this renewable energy source closer to becoming a mainstream generating option.

Stricken by the economic crisis and forced to implement austerity measures, several countries around the world have been forced to abandon or slash subsidies for renewable power producers.

Spain has served as both exemplar and scapegoat when it comes to renewable energy policy. Though power policy must necessarily accommodate specific national resources and goals, Spain’s experience as an early and eager adopter of renewable energy technologies and subsidies is a cautionary tale of how the best intentions can have unintended consequences.