Feeds:
Posts
Comments

Posts Tagged ‘First Solar’

solara

photo: BrightSource Energy

As the Nevada legislature debates extending tax breaks for large-scale solar power plants, a new report finds that ramping up solar development in the Silver State could produce thousands of good-paying green jobs while generating nearly $11 billion in economic benefits.

The study from San Francisco-based non-profit Vote Solar concludes that 2,000 megawatts’ worth of big solar thermal and photovoltaic farms — needed to meet Nevada’s electricity demand — would result in 5,900 construction jobs a year during the plants’ building phase, 1,200 permanent jobs and half a billion dollars in tax revenues.

“It is likely that such an investment in solar generating facilities could bring solar and related manufacturing to Nevada,” the reports authors wrote. “The economic impact of such manufacturing development is not included in this analysis, but would add significant additional benefits.”

Vote Solar’s job projections are based on an economic model developed by the National Renewable Energy Laboratory to project the impact of solar trough power plants, the most common, if dated, type of Big Solar technology.

The different solar technologies set to come online in the next couple of years could change that equation. No doubt thousands of jobs will be generated by Big Solar but just how many will depend on the mix of solar thermal and photovoltaic power plants that ultimately come online. New technologies like BrightSource Energy’s “power tower,” Ausra’s compact linear fresnel reflector and Stirling Energy Systems’s solar dish may generate similar numbers of jobs. But then there’s eSolar’s power tower solar farms – which uses fields of mirrors called heliostats to focus the sun on a water-filled boiler, creating steam that drives an electricity-generating turbine.  eSolar’s small and prefabricated heliostat arrays cut out much of the skilled labor typically needed on such projects as they can be installed by two workers using a wrench.

Photovoltaic farms essentially take rooftop solar panels and put them on the ground and thus don’t require highly skilled laborers to build turbine power blocks, miles of piping and other infrastructure needed in solar thermal facilities. (They also can be built much more quickly than a solar thermal plant, which is why utilities have been striking deals with companies like First Solar (FSLR) and SunPower (SPWRA) for PV farms.)

A second report released this week — from the Large-Scale Solar Association, an industry group — found that Nevada could gain an edge over Arizona and California in luring solar power plant builders if it extended and sweetened tax incentives.  The three states form something of a golden triangle of solar, offering the nation’s most intense sunshine and vast tracts of government-owned desert land that are being opened up for solar development.

The timing of the reports was no accident. The Nevada Legislature held hearings earlier this week on extending tax breaks for Big Solar that expire in June, and Vote Solar’s utility-scale solar policy director, Jim Baak, went to Carson City to lobby legislators, hoping to head off one proposal to tax renewable energy production.

The Large-Scale Solar report, prepared by a Las Vegas economic consulting firm, found that if legislators let the tax breaks sunset, as it were, the developer of a 100-megawatt solar power plant would pay $55.1 million in taxes in Nevada during the first 15 years of the facility’s operation compared to $26.1 million in Arizona and between $36.1 and $37.9 million in California. If the current incentives are kept, tax payments drop to $25.1 million. A bigger tax break would reduce the tax burden to $14.3 million.

Read Full Post »

cstste_eldorado_13850021

photo: First Solar

The arid Southwest has no shortage of sun but has been rather slow to embrace Big Solar power plants, at least compared to California, where more than a half-dozen massive megawatt solar farms are being licensed.

That appears to be changing. On Tuesday, First Solar said it will give New Mexico its first big solar power plant, a 30 megawatt photovoltaic farm that will generate electricity from the company’s thin-film panels. Once the plant is built in Colfax County in northeastern New Mexico, First Solar will sell the electricity it generates to the Tri-State Generation and Transmission Association under a 25-year power purchase agreement. Tri-State is an electric cooperative.

The deal continues First Solar’s (FSLR) move into the power plant business. Earlier this month, the Tempe, Ariz.-based company acquired OptiSolar’s 1.85 gigawatt project portfolio – including a 550-megawatt photovolatic power plant for California utility PG&E (PCG) – in a $400 million stock transaction.

First Solar has also signed contracts for smaller-scale solar farms with Southern California Edison (EIX) and Sempre (SRE).

Read Full Post »

solyndra-rooftop-2

photo: Solyndra

It’s been a good news, bad news Friday for the solar industry. Silicon Valley startup Solyndra received a half billion-dollar loan guarantee from the U.S. Department of Energy to build a solar module factory while further up Interstate 880 OptiSolar moved to shut down its manufacturing operations.

OptiSolar too had asked for a federal loan guarantee to complete work on its Sacramento thin-film solar cell plant but a decision on the $300 million application couldn’t come soon enough to save the startup. “We continued to be unable to find a buyer for the technology and manufacuring business, and the board of directors decided that we needed to limit ongoing operational expense,” wrote OptiSolar spokesman Alan Bernheimer in an e-mail.

First reported by the San Francisco Chronicle’s David Baker, OptiSolar will shut down factories in Sacramento and Hayward, Calif., and lay off 200 workers.  Earlier this month, OptiSolar sold its pipeline of solar power plants – including a 550-megawatt solar farm that will supply electricity to PG&E (PCG) – to rival First Solar  in a $400 million stock deal. At the time, OptiSolar said it intended to focus on manufacturing solar modules.

The news was definitely brighter Friday for Solyndra, which emerged from stealth mode last September with $600 million in funding and $1.2 billion in orders for its solar panels composed of cylindrical tubes imprinted with solar cells. Conventional rooftop solar panels must be tilted to absorb direct sunlight as they aren’t efficient at producing electricity from diffuse light. But the round Solyndra module collects sunlight from all angles, including rays reflected from rooftops. That allows the modules, 40 to a panel,  to sit flat and packed tightly together on commercial rooftops, maximizing the amount of space for power production.

The $535 million federal loan guarantee will allow the Fremont, Calif.-based company to build a second factory, which is expected to create 3,000 construction jobs and more than 1,000 other jobs once the plant is in operation. The factory will be able to produce 500 megawatts’ worth of solar panels a year.

“The DOE Loan Guarantee Program funding will enable Solyndra to achieve the economies of scale needed to deliver solar electricity at prices that are competitive with utility rates,” Solyndra CEO Chris Gronet said in a statement. “This expansion is really about creating new jobs while meaningfully impacting global warming.”

Friday’s grant makes good on Secretary of Energy Steven Chu’s pledge to speed up processing of renewable energy loan guarantee applications. The department had come under fire during the previous administration for taking years to dole out grants and loan guarantees for electric car and green energy projects.

Meanwhile, First Solar (FSLR) announced on Friday that it had manufactured 1 gigawatt of thin-film solar cells since beginning commercial production in 2002. It took the Tempe, Ariz., company six years to hit 500 megawatts and only eight months to produce the second 500 megawatts. First Solar’s annual production capacity will reach 1 gigawatt by year’s end, according to the company.

Read Full Post »

recurent-energy

Another day, another solar deal. San Francisco’s Recurrent Energy on Wednesday will announce that it is acquiring a 350-megawatt portfolio of photovoltaic projects from UPC Solar of Chicago as the industry continues to consolidate.

“Since the financial crisis set in last year we’ve kept an eye out for opportunities to pick up a pipeline of projects,” Recurrent CEO Arno Harris told Green Wombat. “You’re seeing companies like Recurrent that are well-capitalized take advantage of the market consolidation.”

Recurrent, which last year scored $75 million in funding from private equity firm Hudson Clean Energy Partners, installs large-scale solar arrays on commercial rooftops and at government facilities and then sells the electricity generated back to the hosts under long-term power purchase agreements.

The deal puts Recurrent in the power plant business as UPC’s portfolio includes a number of 10-megawatt projects in Ontario designed to take advantage of the province’s generous feed-in tariff for solar farms. “It’s a significant addition to our project pipeline,” Harris said. The projects are in various stages of development but Recurrent expects that 100 megawatts will be completed by 2012. The company stands to benefit from an expected decline in the price of solar panels this year.

Harris declined to reveal the financial terms of the deal but said that Recurrent is putting relatively little money up front. “We wrote a small check to compensate UPC Solar for the work done so far and we’ve committed to continue funding projects,” Harris said. “Then they’ll get a bonus paid at end for completed projects.”

The deal follows thin-film solar company First Solar’s (FSLR)’s $400 million acquisition this month of Silicon Valley startup OptiSolar’s 1,850 megawatt pipeline of photovoltaic power projects, including a 550-megawatt power plant to be built for California utility PG&E (PCG). The same day as the OptiSolar deal, Spanish solar developer Fotowatio bought San Francisco solar financier MMA Renewable Ventures’ project portfolio.

Read Full Post »

First Solar Electric, 701 El Dorado Valley Dr., Boulder City, NV
photo: First Solar

In the second big solar deal of the day, First Solar on Monday announced it was acquiring rival thin-film photovoltaic startup OptiSolar’s solar power plant projects in an all-stock transaction worth $400 million.

The acquisition vaults First Solar into the ranks of big solar power plant developers, giving it control of a 550-megawatt photovoltaic solar farm — the world’s largest — OptiSolar is building for utility PG&E (PCG) as well as 1,300 megawatts’ worth of projects in the pipeline. The deal also includes federal land claims OptiSolar filed on 136,000 acres in the Southwest desert that could support power plants generating 19,000 megawatts of solar electricity.

First Solar CEO Mike Ahearn said 6,500 megawatts of those projects are in the front of the line in the “transmission queue” to connect to the power grid, allowing solar farms to be rapidly deployed over the next couple of years.

“This package in total would be very hard to replicate, if at all,” Ahearn said Monday afternoon during a conference call. “That positions us ideally to be the player in the U.S. utility market.”

OptiSolar spokesman Alan Bernheimer told Green Wombat that OptiSolar will now focus on its solar cell manufacturing operations. “We needed to find a way to realize value for our shareholders,” he said. “This is a wonderful fit. We developed what we think is the largest power plant pipeline while First Solar developed the lowest cost thin-film technology.”

Silicon Valley-based OptiSolar quickly became a leader in the nascent solar power plant market but stalled as the financial crisis hit, forcing the company to halt work on a solar cell factory and lay off half its workers last November. Bernheimer said OptiSolar has applied for a $300 million federal loan guarantee to restart and expand its manufacturing operations.

He said OptiSolar CEO Randy Goldstein will join First Solar, along with about 30 other employees, when the deal closes.

First Solar (FSLR), backed by Wal-Mart’s (WMT) Walton family, has become become known as the Google (GOOG) of solar for its stratospheric stock price. The Tempe, Ariz.-based company jumped into the solar power plant market last year with deals to build small-scale solar power plants for Sempre Energy (SRE) and Southern California Edison (EIX).

The OptiSolar deal follows by hours the sale of solar financier MMA Renewable Ventures’ solar portfolio to Spanish solar developer Fotowatio.  “There’s a shakeout in the marketplace and there’s opportunities for consolidation,” MMA Renewable Ventures CEO Matt Cheney presciently told Green Wombat Monday morning

Read Full Post »

topaz-solar-farm-app

In the green stimulus sweepstakes, big potential winners are companies like Silicon Valley startup OptiSolar.

The solar-cell maker came out of nowhere last year to score a deal with utility PG&E to build the world’s largest photovolaic power plant, a 550-megawatt monster that would cover some 9 1/2 square miles on California’s central coast. OptiSolar subsequently began construction of a factory in Sacramento to produce the thousands of thin-film solar panels needed for the project. Then the economy tanked and as financing dried up, OptiSolar laid off half its workforce – some 300 employees – and halted construction of the Sacramento facility.

With a Colorado solar company executive joining President Barack Obama as he signed the $787 billion stimulus legislation into law Tuesday at a solar-powered museum in Denver, OptiSolar and other renewable energy companies stalled by the financial crisis may see their fortunes revive. The package allows builders of big renewable energy projects to apply for a government cash grant to cover 30% of construction costs in lieu of claiming a 30% investment tax credit. A dearth of investors who finance solar power plants and wind farms in exchange for the tax credits has put in jeopardy green energy projects planned for the desert Southwest and the Great Plains. The cash grant would shave about $300 million off the projected $1 billion price tag for OptiSolar’s Topaz Solar Farm.

The stimulus package also includes $2.3 billion to fund a 30% manufacturing tax credit for equipment used to make components for green energy projects, a provision OptiSolar can tap to help finance its solar cell factories. And the company may be able to take advantage of the legislation’s government loan guarantees for large renewable energy projects.

“It will lower the cost of the factory we’re building in Sacramento and make it easier to attract financing,” OptiSolar spokesman Alan Bernheimer told Green Wombat, noting the company’s priority is to complete the facility and begin production of solar panels. “The factory is more than shovel ready – our shovels are hanging on the wall where we put them when we had stop work in November.” (OptiSolar currently manufactures solar modules at its Hayward, Calif., plant.)

Fred Morse, senior adviser to Spanish solar energy giant Abengoa, says the stimulus package puts back on track a $1 billion, 280-megawatt solar thermal power plant the company will build outside Phoenix to produce electricity for utility Arizona Public Service. “With the stimulus bill we’re very confident we’ll be able to finance the project,” says Morse. He says Abengoa expects to use the government loan guarantees to obtain debt financing to fund construction of the project and then apply for the 30% cash refund. “I think the entire industry is very optimistic that these two aspects of the stimulus package, the grants and the temporary loan guarantees, should allow a lot of projects to be built.”

Mark McLanahan, senior vice president of corporate development for MMA Renewable Ventures, agrees. “I expect the government grants to attract new investors,” says McLanahan, whose San Francisco firm finances and owns commercial and utility-scale solar projects.

There are some strings attached, though.

To qualify for the cash grants, developers need to start shoveling dirt by Dec. 31, 2010. That means only a handful of big solar thermal power plants planned for California, for instance, are likely to make it through a complicated two-year licensing process in time to break ground by the deadline. One of those could be the first phase of BrightSource Energy’s 400-megawatt Ivanpah power plant on the California-Nevada border. But BrightSource’s biggest projects, part of a 1,300 megawatt deal signed with Southern California Edison (EIX) last week, won’t start coming online until 2013 at the earliest.

Another Big Solar project, Stirling Energy Systems’ 750-megawatt solar dish farm for San Diego Gas & Electric (SRE), will be racing to meet the 2010 deadline. The project is in the middle of a long environmental review by the California Energy Commission and the U.S. Bureau of Land Management which currently is scheduled to stretch into 2010.

SolarReserve CEO Terry Murphy says his Santa Monica-based startup has a couple of solar power plant projects in the works that should be able to take advantage of the stimulus provisions. “The likelihood of us being able to close on a financial deal has increased,” Murphy says.

Solar analyst Nathan Bullard of research firm New Energy Finance expects the stimulus package to prompt a push for large photovoltaic power projects. That’s because in California such solar farms – which essentially take rooftop solar panels and mount them in huge arrays on the ground – do not need approval from the California Energy Commission and can be built relatively quickly.

That’s good news for companies like thin-film solar cell maker First Solar (FSLR), which builds smaller scale photovoltaic power plants, and SunPower (SPWRA), which has a long-term contract with PG&E (PCG) for the electricity generated from a planned 250-megawatt PV solar farm to be built near OptiSolar’s project.

“It’s great for PV because you can definitely can get construction done by the end of 2010,” says Bullard. “It’s also good news for smaller and mid-sized developers who couldn’t access tax-equity financing.”

The catch, however, is that renewable energy companies still must raise money from investors in a credit-crunched market to cover construction costs, as the government doesn’t pay out the cash until 60 days after a solar power plant or wind farm goes online. And as McLanahan points out, the cost of raising capital from private equity investors is typically higher and will add to the cost of renewable energy projects. Those costs will only rise if the government is late in paying out refunds.

MMA Renewable finances large commercial arrays and solar power plants and then sells the electricity under long-term contracts to customers who host the solar systems. The loan guarantee provision of the stimulus legislation will help secure financing from investors skittish that some of MMA Renewable’s customers may default on their agreements, according to McLanahan.

Says Murphy: “The fact that we’re getting iron into the ground and getting things moving helps us.”

The wind industry also stands to gain from the stimulus package through a three-year extension of the production tax credit for generating renewable electricity as well as the government cash grants and manufacturing tax credit. Despite a record year for wind farm construction in 2008, projects have come to a standstill in recent months as the financial crisis froze development and forced the European-dominated industry to lay off workers.

“I think it’s good down payment on what needs to happen,” says Doug Pertz, CEO of Clipper Windpower, one of two U.S. wind turbine makers. “A lot more needs to be done but I think this will start to bring a lot of people back into the marketplace.”

Read Full Post »

first-solar-11

With Big Solar thermal power plants bogged down in bureaucracy and facing environmental and financial hurdles, utilities are turning to smaller-scale thin-film solar stations that can be built in a matter of months.

In late December, PG&E (PCG), for instance, signed a 20-year contract for electricity generated  from a 10-megawatt thin-film solar power plant in Nevada owned by energy giant Sempra (SRE) that was officially dedicated on Thursday. The solar farm was built by First Solar (FSLR) in a scant six months. Meanwhile, the utility’s nearly two gigawatts worth of deals with solar thermal power companies won’t start producing power for another two years at the earliest. (Southern California Edison (EIX) and San Diego Gas & Electric signed agreements with solar dish developer Stirling Energy Systems for 1.75 gigawatts in 2005 and those projects are just now beginning to move through the regulatory approval process.) And the financial crisis has made it more difficult for solar thermal developers to obtain the billions of dollars needed to finance the construction of a massive megawatt power plant.

Solar thermal power plants typically use miles of mirrors to heat a fluid to create steam which drives an electricity-generating turbine. Photovoltaic (or PV) solar farms essentially take solar panels similar to those found on residential rooftops and mount them on the ground in huge arrays. (Thin-film solar panels are made by depositing layers of photovoltaic materials on glass or flexible materials.)

“In terms of construction, photovoltaic tends to have a much faster development and construction track,” Roy Kuga, PG&E’s vice president for energy supply, told Green Wombat. “There is a segment of mid-sized projects – in the two to 20 megawatt size – where PV shows a distinct advantage in that market. There’s a huge potential for the PV market to expand.”

That’s good news for companies like First Solar – the Tempe, Ariz.-based company backed by the Walton family that is often called the Google of solar for its stock price and market prowess – and SunPower (SPWRA), the Silicon Valley solar cell maker that’s moved into the power plant-building business.

The speed at which the Sempra-First Solar project went online owes much to the fact that it was built on the site of an existing fossil fuel power plant. “It was already permitted for power generation, transmission existed and it did not have to go through the laborious California permitting process,” says Reese Tisdale, a solar analyst with Emerging Energy Research. “As such, First Solar was able to essentially plug and play.”

Nathaniel Bullard, a solar analyst with New Energy Finance, says he expects utilities increasingly to bet on smaller-scale photovoltaic farms to help meet state mandates to obtain a growing percentage of their electricity from renewable sources. Just this week, PG&E CEO Peter Darbee said his utility plans to invest in solar power plant projects rather than just buy the power they produce.

“I think a utility could easily integrate, technically and financially, 100 megawatts of PV,” Bullard says.  If something is falling behind on your big solar thermal projects, you can plug in PV. I think you’ll see more of this with California utilities and I expect to see it more in Florida and North Carolina. It’s a great runaround to issues of siting and transmission.”

That’s because in California photovoltaic power plants do not need approval from the California Energy Commission. And smaller-scale plants take up far less land and can be built close to existing transmission lines. Most large solar thermal power plants typically are planned for the Mojave Desert and require the construction of expensive power lines to connect them to the grid.

The modular nature of PV solar farms means they can begin generating electricity as each segment is completed while a solar thermal plant only goes online once the entire project is finished.

“Certainly there is a sweet spot in which the project is large enough to gain advantages of scale,” says Tisdale. “Also, these small-to-mid-size systems can be spread about a transmission network, instead of at one site.”

Read Full Post »

« Newer Posts - Older Posts »