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Report: China overtakes U.S. as best for green investors

Posted in alternative energy, green policy, renewable energy, solar energy, tagged , , , , on September 13, 2010| Leave a Comment »

I wrote this story for Grist, where it first appeared.

The same day this week that The New York Times published an extensive report by correspondent Keith Bradsher on China’s massive subsidies for renewable energy companies, Ernst & Young released a study showing that, not surprisingly, China has overtaken the United States as the most attractive place for green tech investment.

“China’s steady rise to pole position has been underpinned by strong and consistent government support for renewable energy,” Ben Warren, Ernst & Young’s environment and energy infrastructure advisory leader, said in a statement. “This, together with substantial commitment from industry and the sheer scale of its natural resources, means that its position as top spot for renewable energy investment is well merited.”

Some of that government support may violate World Trade Organization rules. On Thursday, an American union, the United Steelworkers, filed an unfair trade complaint against China with the Office of the United States Trade Representative.

But the Ernst & Young report points to failures on the part of the U.S. government to take action that would attract green investors.

For one thing, Congress has so far failed to establish a national Renewable Energy Standard that would require the country’s utilities to obtain a certain percentage of electricity from non-carbon-emitting sources.

Also, a federal tax subsidy program that is spurring construction of big solar power plants expires at the end of the year and legislation to extend the incentives is languishing in Congress.

“Although the United States remains a highly attractive location for investors in renewable energy, it is clear that recent events have eased momentum,” said Warren. “The U.S. market continues to have significant potential but requires consistent legislative support to provide investors with the long-term confidence they need.”

China, in contrast, “aims to reach an installed capacity of 300GW [gigawatts] of hydro, 70GW of nuclear, 100GW of wind, and 20GW of solar capacity by 2020,” according to the Ernst & Young study.

Reports by the U.S. Energy Information Agency provide a glimpse of the green imbalance of trade between the two countries. The figures from 2008 — apparently the latest available from the government — show that fewer than 1 percent of U.S.-made solar modules were shipped to China while nearly 23 percent of Chinese-made photovoltaic modules were exported to the U.S.

Since then, Chinese imports have risen dramatically. At the end of 2009, for instance, Chinese firms supplied about half the California solar market alone, according to Bloomberg New Energy Finance, a consulting firm.

What China is not exporting, of course, is green jobs.

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Greening the Navy by building the Priuses of the air and sea

Posted in alternative energy, biofuels, environment, global warming, green policy, green tech, renewable energy, tagged , , , , on August 17, 2010| 1 Comment »

photo: U.S. Navy

In The New York Times on Tuesday, I write about Navy Secretary Ray Mabus’ plans to green the Navy and Marine Corps and help build a market for new technologies:

Want to stimulate demand for renewable energy? Send in the Marines.

That was Navy Secretary Ray Mabus’s message on Monday when he outlined plans to slash the Navy and Marine Corps’ dependence on fossil fuels during an appearance on Monday evening at San Francisco’s Commonwealth Club.

“We use in the Navy and Marine Corps almost 1 percent of the energy that America uses,” Mr. Mabus said. “If we can get energy from different places and from different sources, you can flip the line from ‘Field of Dreams’ — If the Navy comes, they will build it. If we provide the market, then I think you’ll begin to see the infrastructure being built.”

“Within 10 years, the United States Navy will get one half of all its energy needs, both afloat and onshore, from non-fossil fuel sources,” he added. “America and the Navy rely too much on fossil fuels. It makes the military, in this case our Navy and Marine Corps, far too vulnerable to some sort of disruption.”

Reaching those renewable energy goals will be a gargantuan challenge. The Navy operates 290 ships, 3,700 aircraft, 50,000 non-combat vehicles and owns 75,200 buildings on 3.3 million acres of land.

Last year the Navy launched its first electric hybrid ship, the Makin Island, an amphibious assault vessel that some have dubbed the Prius of the seas. On its maiden voyage from a shipyard in Pascagoula, Miss., to its home base in San Diego, the Makin Island saved $2 million in fuel costs, Mr. Mabus said.

“In terms of our fleet, we have most of ships we’re going to have in 2020 so we know what we have to do to change that,” he said in a conversation with Greg Dalton, a Commonwealth Club executive. “We can do things like retrofit ships with hybrid drives. Mainly it’s changing the fuels.”

Two days after the Deepwater Horizon oil rig exploded in the Gulf of Mexico in April, a Navy pilot flew an F/A-18 Hornet fighter jet powered by a biofuel blend made from the seeds of camelina sativa, an inedible plant.

You can read the rest of the story here.

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Black & Veatch: Future looks carbonated

Posted in alternative energy, energy, environment, green policy, nuclear energy, solar energy, wind power, tagged , , , on January 15, 2010| 1 Comment »

Could we really be as dependent on fossil fuels in 2034 as we are today? In The New York TImes on Friday, I write about a projection from energy consultants Black & Veatch that sees fossil fuels continuing to play a dominant role in the United States a quarter century from now:

A quarter century from now the United States’ reliance on fossil fuels will have declined only marginally, according to a projection from Black & Veatch, the engineering and energy consulting firm.

In 2034, a mix of coal, natural gas and other fossil fuels will supply 68 percent of the nation’s energy needs, compared to 76 percent today. The share of energy production from renewable sources, including solar and wind, in 2034 will rise to 13 percent from 5 percent. Nuclear power will supply only 2 percent more electricity than it does in 2010, the firm said.

Those numbers were part of a presentation that Black & Veatch made to utility executives and other clients in Sacramento this week and which Mark Griffith, a managing director at the company, shared with The Times.

“We’re not assuming that greenhouse gas legislation leads to a immediate shutdown of all coal plants, nor does it lead to going directly to natural gas or renewables,” said Mr. Griffith.

However, Mr. Griffith acknowledged that a number of factors remain in flux that could change those dynamics, including the final shape of a cap-and-trade system – if one is implemented – and whether the United States imposes a requirement that all states obtain a percentage of their electricity from renewable sources.

You can read the rest of the story here.

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Kicking Indiana’s coal addiction

Posted in alternative energy, biofuels, climate change, energy, environment, global warming, green collar jobs, green policy, green tech, Natural Resources Defense Council, renewable energy, solar energy, tagged , , , on October 9, 2009| Leave a Comment »

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photo: Todd Woody

Can a state that gets 95 percent of its electricity from coal-fired power plants go green? The Natural Resources Defense Council thinks so. In a report released this week, the environmental group lays out how Indiana can become the California of the Midwest when it comes to renewable energy. As I write in The New York Times on Friday:

Coal-dependent Indiana could become one of the nation’s greenest states by tapping rural resources to generate renewable energy, according to a new report issued by the Natural Resources Defense Council.

The Hoosier State now obtains 95 percent of its electricity from plants running on coal — largely imported from Wyoming and elsewhere — but it could profit as an exporter of wind energy and machinery, the report said.

“Indiana has some of the best wind potential in the eastern U.S. and has a competitive advantage as a wind producer over most other states because of its location,” said the report’s author, Martin R. Cohen, said during a conference call on Wednesday.

Mr. Cohen noted that while the wind blows stronger in states like North Dakota and Nebraska, Indiana already has the transmission system in place to bring wind-generated electricity to eastern cities.

If Indiana increased wind energy production to 4,500 megawatts from its current 530 megawatts, it would create thousands of jobs and attract turbine manufacturers, according to the report. An owner of a 500-acre farm could earn $30,000 a year from leasing land for wind turbines, Mr. Cohen estimated.

Farmers also could profit, the report said, if Indiana starts harvesting corn stalks, wheat stalks and soybean residue and uses the biomass either for power production or to make ethanol.

You can read the rest of the story here.

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Solar farms face drought as water war breaks out

Posted in Abengoa Solar, alternative energy, BrightSource Energy, climate change, energy, enviro startups, environment, global warming, renewable energy, solar energy, Solar Millennium, solar power plants, Tessera Solar, tagged , , , , , , on September 30, 2009| 4 Comments »

Stirling Energy Systems Solar One project

image: Tessera Solar

In a feature published in today’s New York Times, I look at a water war breaking out in the desert Southwest over plans to build dozens of large-scale solar power projects on hundreds of thousands of acres of land:

AMARGOSA VALLEY, Nev. — In a rural corner of Nevada reeling from the recession, a bit of salvation seemed to arrive last year. A German developer, Solar Millennium, announced plans to build two large solar farms here that would harness the sun to generate electricity, creating hundreds of jobs.

But then things got messy. The company revealed that its preferred method of cooling the power plants would consume 1.3 billion gallons of water a year, about 20 percent of this desert valley’s available water.

Now Solar Millennium finds itself in the midst of a new-age version of a Western water war. The public is divided, pitting some people who hope to make money selling water rights to the company against others concerned about the project’s impact on the community and the environment.

“I’m worried about my well and the wells of my neighbors,” George Tucker, a retired chemical engineer, said on a blazing afternoon.

Here is an inconvenient truth about renewable energy: It can sometimes demand a huge amount of water. Many of the proposed solutions to the nation’s energy problems, from certain types of solar farms to biofuel refineries to cleaner coal plants, could consume billions of gallons of water every year.

“When push comes to shove, water could become the real throttle on renewable energy,” said Michael E. Webber, an assistant professor at the University of Texas in Austin who studies the relationship between energy and water.

Conflicts over water could shape the future of many energy technologies. The most water-efficient renewable technologies are not necessarily the most economical, but water shortages could give them a competitive edge.

In California, solar developers have already been forced to switch to less water-intensive technologies when local officials have refused to turn on the tap. Other big solar projects are mired in disputes with state regulators over water consumption.

To date, the flashpoint for such conflicts has been the Southwest, where dozens of multibillion-dollar solar power plants are planned for thousands of acres of desert. While most forms of energy production consume water, its availability is especially limited in the sunny areas that are otherwise well suited for solar farms.

You can read the rest of the story here.

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Green energy grows: $325 billion by 2018

Posted in alternative energy, biofuels, renewable energy, solar energy, wind power, tagged , , , , on March 10, 2009| Leave a Comment »

clean-edge-report

Worldwide revenues from the solar photovoltaic, wind and biofuels industries jumped 53% in 2008 to $116 billion and is on track to grow to $325 billion by 2018, according to a report released Tuesday by West Coast market research firm Clean Edge.

Last year’s boom, however, is unlikely to be repeated in 2009, given the global financial crisis. Signs of the slowdown were apparent last year as new global investment in green energy grew by a paltry 4.7% to $155 billion, compared to a 60% rise between 2006 and 2007. In the United States, however, venture capital investments in green tech grew 22% last year to $3.3 billion, representing 12% of all VC investments, according to figures compiled by research firm New Energy Finance.

“2009 is a year to get through,” said report author Ron Pernick during a conference call.

Of course, growth projections for renewable energy are inherently speculative. Green energy investment is strongly dependent on government policy and what the Obama administration gives today in the form of billions in subsidies and incentives a successor can take away. And then there are calamities like the extent of the meltdown of the global economy that few foresaw even a year ago.

The wind industry accounted for a third of renewable energy revenues in 2008, becoming a $50 billion business. Clean Edge projects that employment in the wind and solar industries will grow from a combined 600,000 jobs in 2008 to 2.7 million by 2018.

“As the market transitions to low-carbon fuel and electricity sources, conservation and efficiency efforts, and the deployment of a smart, 21st century grid, we believe clean energy offers one of the greatest opportunities for both local and global economies to compete and thrive,” wrote Pernick and co-authors Joel Makower and Clint Wilder.

They identified as growth areas smart grid technologies, energy storage for wind and solar farms, the Eastern Eureopean market,  power grid infrastructure and micro power grids that provide electricity to self-contained facilities or areas.

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California’s green energy spike

Posted in alternative energy, climate change, energy, environment, global warming, PG&E, renewable energy, San Diego Gas & Electric, solar energy, solar power plants, Southern California Edison, tagged , , , , , on February 19, 2009| 4 Comments »

cpuc-rps-report

California quadrupled the amount of renewable energy it installed in 2008 over the previous year, according to a report released Wednesday by the state’s Public Utilities Commission.

The 500 megawatts of green electricity brought online last year represents 60% of all renewable energy generation built since 2002, when California mandated that the state’s investor-owned utilities obtain 20% of their power from renewable sources by 2010. In November, Governor Arnold Schwarzenegger signed an executive order raising the Renewable Portfolio Standard, or RPS, to 33% by 2020.

“Clearly, 2008 was a turning point for the RPS program and contracted projects are beginning to deliver in large numbers,” the California Public Utilities Commission report stated.

The CPUC in 2008 approved projects that would generate 2,812 megawatts of renewable energy for California’s Big Three utilities – PG&E (PCG), Southern California Edison (EIX) and San Diego Gas & Electric (SRE). Impressive numbers but the utilities have acknowledged they are unlikely to meet their renewable energy targets by the 2010 deadline because it takes years to get solar and wind projects online and some will inevitably fail. For instance, the financial crisis has raised questions about just how many of the Big Solar power plants the utilities are relying on will actually get built, though the $787 billion stimulus packaged signed into law Tuesday by President Barack Obama has brightened the solar industry’s prospects.

California increasingly is depending on solar energy to meet its commitments to reduce greenhouse gas emissions under the state’s landmark 2006 global warming law. According to regulators, utilities received 30% more bids for solar power projects in 2008 than in the previous year while wind farm proposals dropped by half and “very few” geothermal tenders were filed.

The fact that utilities received 24,000 megawatts’ worth of renewable energy bids last year (more than enough, if built, to meet the 33% renewable energy target) speaks to the frothy state of the market. But before solar power plants and other green energy projects can go online they face years-long and often contentious environmental reviews, while a lack of transmission lines to bring all this electricity from the desert to coastal cities remains the green elephant in the room.

Meanwhile, regulators are reviewing a policy change that would seem to undercut the state’s goal of encouraging utilities to generate more renewable energy. On March 12 Feb. 20,the California Public Utilities Commission will consider whether to allow utilities to buy so-called tradable renewable energy credits, or TRECs, from other entities  to meet their green electricity mandates. Such credits are associated with the electricity generated by wind farms, solar power plants and other projects and can be bought and sold. In other words, if a utility finds itself falling short of its renewable energy goals – or just doesn’t want to spend the money procuring green power – it could buy TRECs on the open market.

Green Wombat is awaiting a reply from the utilities commission on whether California utilities could purchase TRECs generated by out-of-state projects – which, of course, would do nothing to reduce the state’s own greenhouse gas emissions.  UPDATE: CPUC spokeswoman Terrie Prosper says that utilities will be able to buy out-of-state TRECs as long as they meet California’s eligibility requirements.

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Green stimulus: Who wins

Posted in Abengoa Solar, alternative energy, BrightSource Energy, endangered species, First Solar, green financing, green policy, green tech, MMA Renewable Ventures, OptiSolar, PG&E, renewable energy, San Diego Gas & Electric, solar energy, solar power plants, Southern California Edison, Stirling Energy Systems, SunPower, the green economy, tagged , , , , , , , on February 17, 2009| 1 Comment »

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.”

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Obama’s new green grid regulator

Posted in alternative energy, green grid, renewable energy, solar energy, solar power plants, wind power, tagged , , , , on January 26, 2009| 3 Comments »

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photo: FERC

The Federal Energy Regulatory Commission, or FERC, is one of those acronym agencies that regulates a key aspect of the United States economy – the electricity grid – but tends to operate under the radar.

Not any more. With President Barack Obama’s appointment of FERC Comissioner and renewable energy advocate Jon Wellinghoff as the agency’s acting chairman, FERC will play a key role in the administration’s efforts to digitize the nation’s aging analog power grid to promote solar and wind energy while creating green jobs. The largest chunk of the stimulus package devoted to renewable energy – some $54 billion – has been set aside for modernizing the grid.

At a Nov. 18 briefing on Capitol Hill, Wellinghoff showed that he’s been thinking extensively about how to upgrade the grid to connect renewable energy produced in remote areas to population centers on the coasts. “In the whole Midwest of this country there are virtually no high- voltage transmission lines,” he said, displaying Google’s  (GOOG) proposal to wean the U.S. from fossil fuels by 2030.  “If you overlay where the wind is, all the wind is in the middle of this country – all those areas where we do not have sufficient transmission. Hopefully we can get the structure to put renewables on the grid and improve the grid to make it a smart system that can ultimately deliver these resources in an efficient way.”

Wellinghoff in a December interview with EnergyWashington.com advocated reviving domestic manufacturing of big transformers – now made overseas – to support the expansion of high-voltage power lines across the U.S.

On Monday, Wellinghoff called for electric cars to be integrated into the electric grid, according to a report by Dow Jones. He said FERC could structure rates to pay car owners for returning electricity to the grid from their vehicle batteries to help balance the power supply as more solar, wind and other intermittent sources of energy come online.

At the November briefing, Wellinghoff called electric cars part of “the glue” that will hold a green grid together and said the federal government should consider giving automakers like General Moters (GM) and Ford (F) incentives to produce plug-in hybrids.

“To modernize the grid, we need to define our goals and define a national tranmission planning process,” he said. “Let’s do it. We just need to get it done.”

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Forget the recession, California goes for the green

Posted in alternative energy, BrightSource Energy, climate change, endangered species, enviro startups, environment, global warming, green policy, green startups, green tech, Natural Resources Defense Council, OptiSolar, PG&E, renewable energy, San Diego Gas & Electric, solar energy, solar power plants, Southern California Edison, the green economy, tagged , , , , on November 18, 2008| 2 Comments »

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photo: California Governor’s Office

California Governor Arnold Schwarzenegger on Monday terminated talk that the recession will crimp California’s fight against global warming when he ordered every utility in the state to obtain a third of its electricity from renewable sources by 2020. And in a move that will shake up the land rush to build solar power plants in the desert, Schwarzenegger signed an executive order to streamline and prioritize the licensing of such projects.

“One of the great things about California, of course, is that we always push the envelope,” said Schwarzenegger at startup OptiSolar’s solar cell factory in Sacramento, surrounded by a triptych of solar panels, utility executives and environmentalists. “That is why today I’m proposing that we set our sights even higher. This will be the most aggressive target in the nation.”

California currently requires the state’s Big Three investor-owned utilities – PG&E (PCG), Southern California Edison (EIX) and San Diego Gas & Electric (SRE) – to secure 20% of their electricity from green energy sources like wind, solar and geothermal by 2010. Monday’s move turns what had been a 33% renewables goal into a mandate and extends responsibility for meeting it to every electricity retailer in California.

Utilities, however, have struggled to reach even the 20% target as renewable energy projects become bogged down in California’s extensive environmental review and licensing process that involves a host of state and federal agencies.

Many proposed massive megawatt solar power plants will be built on environmentally sensitive land in the Mojave and Colorado deserts in California, threatening to trigger years-long battles over endangered species and water.

Take, for instance, the Ivanpah Solar Electric Generating System, 400-megawatt solar thermal power plant  to be built by Bay Area startup BrightSource Energy on U.S. Bureau of Land Management property. BrightSource, which has a 20-year contract to sell the power plant’s electricity to PG&E, is dealing with the California Energy Commission, the California Department of Fish and Game, the BLM and the U.S. Fish and Wildlife Service as well as the agencies that control access to the transmission grid.

Then there’s environmental fights over extending power lines to connect such projects to coastal metropolises. Late last month, state regulators rejected San Diego Gas & Electric’s plan to build $1.3 billion transmission line called the Sunrise Powerlink due to the environmental impact of routing it through sensitive desert lands.  A final decision on the project to bring green energy from the Imperial Valley to coastal metropolises will be made next month.

Schwarzenegger’s executive order requires various state agencies to collaborate to create a one-stop shopping permit process to cut in half the time it takes to license a renewable energy project – which now can be a two-year slog. The U.S. Fish and Wildlife Service and BLM also agreed to participate in a Renewable Energy Action Team to expedite the licensing of solar power plants and other green energy projects.

“We will streamline the permitting process and the siting of new plants and transmission lines,” Schwarzenegger said. “We will complete the environmental work up front, dramatically reducing the time and the uncertainty normally associated with any of those projects.”

By March 1, the action team will identify and prioritize those areas of the desert that should be developed first for renewable energy projects based on environmental impacts and access to transmission. The group will also work with another task force that is identifying where power lines should be extended into the desert.

That will affect the fortunes of dozens of solar startups, financiers and speculators — everyone from Goldman Sachs (GS) to Chevron (CVX) — that have filed lease claims on nearly a million areas of desert land that the BLM is opening up for solar power plants. Those with land claims in areas at the top of the list for renewable energy development will find it easier to obtain financing – currently in short supply – to build billion-dollar projects. Those at the bottom of the list may rue the six-figure application fees they paid to stake claims on thousands of acres of desert land.

Behind the optimistic talk and smiles at Monday’s press conference, utility execs and environmentalists who praised the governor’s latest green initiative also signaled that political fights over how to achieve the state’ ambitious renewable energy goals are not over.

“Transmission is absolutely critical to get those renewables from the Imperial Valley,” San Diego Gas & Electric CEO Deborah Reed told the audience. “Assuming a positive decision on Sunrise Powerlink next month, we’ll get to 33% by 2020.”

But when the Nature Conservancy’s Rebecca Shaw took the microphone, she offered a cautionary note. “In our urgency to create a more sustainable future, we must be careful not to destroy the very environment that we are trying to protect,” said Shaw, associate state director for the environmental group.

California’s aggressive renewable energy policies already have had one desired consequence: spurring the creation of green collar jobs. OptiSolar, which earlier this year signed a long-term contract to supply PG&E with 550 megawatts of electricity from a massive photovoltaic solar farm, employs 500 people at its Bay Area headquarters and factory. CEO Randy Goldstein said his company will hire another 1,000 for its new Sacramento factory.

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